Hermes International SWOT Analysis 2022 – H51 SAS

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SWOT Analysis Of Hermes International analyzes, Hermes International is a French high-end luxury products producer and is consistently placed on the list of the most important luxury brands and is a household name among the ranks of high-end luxury. The brand is comprised of exceptional craftsmanship with a rich heritage and the highest quality, professionalism and high-end quality. Its logo depicts the Duc carriage that is adorned with a horse. It’s been in use since the 1950s. Its logo represents the highest quality in the world. Hermes International is a family-owned company for five generations. It is now well-known for its leather products. In the present, every two minutes, Hermes offers one scarf of silk. The Birkin bag, which is it’s exclusive to them has the longest wait time and is believed to be nearly six years.

Did you know?

In 2011, more than 50 descendants of Thierry Hermès pooled their shares into a co-operative called H51, which was valued at USD 16 billion. 

Hermès International S.A. is a manufacturer and marketer of upscale luggage, apparel, and accessories. From a 19th-century foundation in leather goods, the company (pronounced ‘air-may’) diversified into silk goods, ready-to-wear clothing, and perfume. Its ongoing dedication to family ownership and management, impeccable craftsmanship, and careful protection of the brand’s mystique set Hermès apart from many of its French luxury goods compatriots. With or without the venerable trademark, Hermès products are distinguished by their uncompromising quality, a concept summarized in a family credo: ‘Que l’utile soit beau’ (‘That the useful be beautiful’).

This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Hermes International.

Hermes International At A Glance – Hermes International SWOT Analysis

Company: H51 SAS
Founders: Thierry Hermès
Year of establishment: 1837, Paris, France
CEO: Axel Dumas
Headquarters: Paris, France
Employees (Dec 2020): 16,437
Ticker Symbol: HESAY
Type: Public
Annual Revenue (Dec 2020): EURO€1.1 Billion
Profit net income (Dec 2020): EURO€1,174 Million

Products & Services: Leather goods | Lifestyle accessories | Furniture | Fragrances | Watches | Jewelry | Ready-to-wear | Saddlery

Company Website: www.hermes.com

Top Hermes International Competitors 

Competitors: Chanel | Christian Dior | Burberry | Ralph Lauren | Prada | Zara | Louis Vuitton | Hugo Boss | Tiffany & Co. | Pandora | Balenciaga 

Hermes International SWOT Analysis – SWOT Analysis Of Hermes International

SWOT Analysis Of Hermes International analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Hermes International SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Hermes International SWOT Analysis. Below Is The Detailed SWOT Analysis Of Hermes International.

Hermes International Strengths – Hermes International SWOT Analysis

1. Solid branding image: Women, the highest point of having a luxurious item is the Hermes Birkin bag , which is extremely expensive, starting at $12,000 up to $200,000. According to the world-renowned value of brands firm Interbrand, Hermes listed on the 32 2nd spot within the Best Global Brands. The assortment of items under Hermes’ brand name comprise leather products, lifestyle, ready-to-wear , and perfumes. The company has had success in maintaining its distinctive brand and valuable through a long tradition, top quality and outstanding workmanship. Hermes is a shrewd aesthetic and is considered to be the most creative of the luxurious fashion houses.

2. Global presence: Hermes is a brand that is global with 307 stores across the globe and its flagship store on Madison Avenue. The stores are situated in the U.S, Russia, Asia and Europe and employ more than 13,000 employees. In 2018, the company has revenue of more than USD seven billion, and profit more than 2.5 billion. The company has a rich heritage of more than 181 years, and it is attributed to its desire for creativity and strategic consistency across the world market and constant efforts to achieve the long-term rather than the quick-term.

3. Large product selection: The products of the brand are offered in a wide range of categories, including women’s and men’s clothing furniture jewelry leather and saddlery wallpaper, tableware fragrances, watches, and small watches. This method of the business to diversify its industries has created the brand a solid brand presence. The strategy for branding is consistent across all of the categories of products that it’s expanded.

4. Strategy for branding: strategies: Hermes is not a fan of celebrities’ endorsements to boost its image as a brand and has been averse to this kind of marketing. Only A-listed celebrities and extremely wealthy individuals have access to the most exclusive and luxurious products. Hermes does not offer region-specific collections or products, all the items are standard throughout the world, making it appear consistent. The company also doesn’t offer items on sale or discounts.

Hermes International  Weaknesses – Hermes International SWOT Analysis

1. Competition: Louis Vuitton who is the biggest competitor to Hermes has focused on its history and as a travel-related brand It has been able to keep customers. LV has a high price for its bags, and is very strict about the people who can offer it. Chanel also is growing it’s percentage of the market with its classic quilted makeup as well as fragrances and bags. Other rivals are Christian Dior, Prada, Burberry, Hugo Boss etc. Fashion companies that are fast such as ZARA, H&M has also taken over the market share. Hermes must to continuously evolve and distinguish its offerings to gain the upper hand in the luxury market

2.Imitation : It is now simpler for designers to create counterfeit products that are more accurate and faster than ever before because the detailed photos of products are uploaded within minutes of their launch. For instance, within New York itself, the federal government confiscated half-billion dollars of counterfeit luxury items. One method Hermes can combat counterfeit products is by using on demanded manufacturing. Designs are produced by machines that produce a specific amount of units, using the blockchain technology.

Hermes International Opportunities – Hermes International SWOT Analysis

1.  Global expansion: Global expansion is a crucial method for Hermes to combat the periodic declines in certain areas, the larger economic fluctuations in demand, and changing consumer preferences. Hermes ‘ products such as perfumes and jewelry are increasing in volume and sales, and contribute to the revenues of the company , however they have not yet reached the same level as the success of its leather and saddlery divisions. The exclusivity-marketing model of Hermes could be a challenge in the global expansion of the various product ranges.

2. Enhance the brand’s Equity: Hermes is famous for its exquisite craftsmanship in the field of silk and luxury leather goods. Although Hermes has expanded its product offerings into different categories, the equity of these products is not the identical to those of silk and leather. The watches are in an unsteady growth path and in 2016 the watches contributed only just 3 percent of the company’s 5.2 billion revenues. Hermes must work to improve the image of the brand through the many product lines.

Hermes International Threats – Hermes International SWOT Analysis

1. Brand Takeover: LVMH has a stake of 22.3 percent of Hermes and is doing everything it can to stop that percentage from increasing. LVMH purchased the massive stake in Hermes in 2010 , and since then, the brand has been frightened of a  hostile taking over of its own by LVMH. Hermes thinks that this is more of an “cultural battle” than a financial one. To stop the acquisition Hermes has set up an independent family holding company which controls 50 percent of the shares and shields it from LVMH.

2. Economic instability: The consequences of the protectionist policies taken by the world’s top economies have had a dampening effect but the brand is performing well, as global trade is actually increasing five percent. The trade is much will depend on the capability of the countries to stand up to the uncertainty and global liquidity shocks that originate from those in the United States. The chief economist of the company however, warned that if this continues the company may be facing risk of payment across the world.

Hermes International SWOT Analysis Overview Template

Hermes International SWOT Analysis Overview Template

This is the SWOT report that Hermes International has done. Please let us know if you have additional suggestions to add.


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