Hermes Not Going “Mass” Produce
Inspite the economic downturn, Hermes is standing ground and sticking to its business strategy by not getting into mass production. This move, according to Hermes CEO Patrick Thomas, is so the brand’s maintains its prestige as a high profile product. He says, “If we put a big H on a bag, we will sell millions. But what if to grow faster you compromise on quality and the finishing of the product? Then people will begin to say, ‘Ah, you know Hermès is no longer the same.’ That’s why we should never do that. It would be a capital sin when you have an asset, a jewel like Hermès.”
Their business strategy seems to still work as people still do look out for their new releases and the company still keeps some 2,000 artisans who handcraft their bags.
Thomas adds, “If people buy an Hermès bag, they know it is going to last them for 40 years. The bag isn’t an expense, it’s an investment.”
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