Luxury Brands Can't Help Hermes.

At the moment of luxury brand row and warm up, Hermes can still be independent, keeping the family lineage pure while still keeping the ambition of the purchasers out of the way with the performance of a dust laden dust.

What kind of business code has created the myth of Hermes in luxury goods and rivers?

The Royal royalty label was once the biggest selling point of Hermes.

Since its listing in 1993, Hermes's share price has risen 62 times, becoming a truly sucking king.

This is a family business that has been handed down for nearly two centuries, but its ability to innovate has made Internet Co such as Netflix take the lead.

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The initial unknown, as well as the peak of the group of tobacco started different, Hermes is born expensive.

179 years ago, the French Revolution lifted the social status of the capital aristocracy to an unprecedented height.

The enlightenment in seventeenth Century not only changed the foundation of Western society, but also played an important role in promoting the development of luxury goods industry.

Adams has expressed support for the development of trade and luxury goods, which is the driving force of economic development.

The birth of Hermes is just in time.

Although the level of state power is constantly changing, the rich life of the upper class is still loud and clear.

At that time, horse drawn carriage was the most common commuter tool, and the upper class would naturally display its style through horse equipment.

Accordingly, a maker of saddle leather named Thierry Herms opened the history of Hermes in Paris.

Subsequently, Thierry's only son, Charles Emile, inherited his father's career and moved the already famous Hermes to Paris's most prestigious Fu Bao Avenue.

But at this time, the process of history has created a difficult problem for the Hermes family -- the rise of the automobile industry.

To this end, Charles Emile's two sons, Adolphe and Emile Maurice, are divided. The former looks at the business prospects of the declines, leaving the family business entirely to Emile Mauric.

Emile has no offspring, and the four daughters have no family members of Herms surname.

The rise of the automobile industry has led Hermes to diversify. But the Hermes family heir who is well versed in the upper class does not feel hesitant because of the upgrading of the main business.

Soon, Hermes saddles appeared new suitcases, suitcases, wallets and handbags.

Although products are different, aristocratic social status is nothing more than equipment in hand.

Once the saddle and reins were used, after the car had liberated both hands, the bags became the best choice.

So Hermes

Very successful.

Hermes bags quickly captured a large number of aristocrats, including the princess Grace Kelly of Monaco.

For a moment, the label of royalty became the biggest selling point of Hermes.

And the single handle satchel that became popular because of Grace Kelly "tap water" became the famous "Kylie bag" in the future Hermes product genealogy.

If we say "dismount on the train" is the first turning point of Hermes, then the expansion of product line from 1989 to 2006 is undoubtedly another masterpiece for Hermes to conquer the world.

During the period from 1989 to 2006, sales increased by 4 times to 1 billion 900 million US dollars.

In 2013, the company set a new record of sales, with sales volume of 50 billion, and operating profit of 1 billion 690 million US dollars. It is the fastest growing company in the past 6 years.

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The director's good play is Hermes's fifth generation successor, Jean Louis Dumas.

Undoubtedly, he is one of the most successful successors in the Hermes family. The ingenious design of the company structure and the expansion of "mysterious" products are enough to keep him in the luxury industry.

During his term of office, Hermes's share was divided into 6 holding companies.

The 6 holding companies are divided into two parts, one layer is more focused on ownership management, that is, Emile Herm s SARL. The family named by the family members is composed of family members who are responsible for deciding budgets, approving loans and exercising veto power. The other level is Herm s s International, which is responsible for daily management and external cooperation (11 of its members are non family members currently occupy four seats).

In this way,

It has both the absolute control of the family and the broader external vision.

On this basis, Hermes chose to go public in 1993.

But Hermes still has more than 80% of its shares in the hands of 56 family members. Family members are allowed to buy and sell stocks on the basis of guaranteeing absolute family holding, thereby avoiding disputes between family members due to equity value.

It was this company structure design that allowed Hermes to get away from LVMH's hostile takeover in 2011.

The face of Hermes is not ambiguous.

Jean also opened up the expansion of the global sales network and product line expansion.

Since 1980s, Hermes has gradually established a retail empire across five continents.

In 1990s, more than 50% of the annual sales revenue came from Europe, while the Asia Pacific market made rapid progress, contributing 1/3 of annual revenue, while the US market accounted for 11% of the sales revenue.

From 1986 to 1996, the annual sales revenue of Hermes increased by 24% in 10 years.

Sales growth is not what Hermes's traditional business can do.

You know, Hermes's pursuit of high quality comes from every leather product handmade by more than 3000 skilled craftsmen in 12 studios in France.

In this way, the persistence of quality is hard to get rich income.

To this end, Hermes has created a new product line.

In 1979, a popular advertisement in France featured a young woman wearing Hermes scarves and introducing Hermes brand to a new generation of consumers.

This large-scale marketing campaign has changed the brand image of Hermes.

A large number of young supporters were captured.

Because Hermes knows the true meaning of luxury.

"Our business is to create desire, it can be changeable, because desire is changeable, but we try to use creativity to slow down this momentum."

The sixth generation successor, Axel Dumas, said.

Creativity and desire are the killer of Hermes marketing strategy.

You can see Hermes creative products far more than the scarves of bags, such as bicycles, basketball, or even automotive interior.

But when you are ready to pay for it, you will be told that people who are waiting with you all over the world have made a long list.

Over the past 5 years, the share price has risen by 23.87%, LVMH has risen 12.07%, and Hermes has risen 79.65%.

It is this persistent and uncompromising mystery that makes Hermes a real sucking king.