Monday, May 11, 2009

French Luxury Company Hermès On Its Peek


Paris - Kasia Al Thani owns 18 versions of the $7,000 Birkin handbag made by French luxury-goods company Hermès and is on waiting lists for two more bags, including one in white crocodile skin.

"When I see other women carrying a Birkin in a color that I want, I get bag envy," says the 32-year-old chief executive of luxury retail Web site savoir-faire.com. "The more you can't have something, the more you want it."

The French fashion house, which was founded in 1837 as a saddle maker, has eschewed many of the strategies followed by others in the industry.

While bigger designer brands such as Louis Vuitton, Gucci and Armani have pursued fast growth, expanding rapidly in emerging markets and reaching out to a younger, hipper clientele with trendy products and advertising, Hermès has taken a sleepier approach to the business -- even in times of economic prosperity.

Hermès also keeps tight control over its retail outlets and rewards loyal clients with private parties, tickets to horse races and yoga sessions.

"We are not fashionable, and we avoid being fashionable, We didn't want to make the brand too accessible. Suddenly Hermès bags were being associated with canvas, which is not what we wanted," says Mr. Thomas.

Source: The Wall Street Journal

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