In the first quarter of 2022, Hermès' comprehensive revenue reached 2.765 billion euros (about 19.3 billion yuan), an increase of 33% year-on-year. Leather goods such as handbags remained the core source of revenue, up 21% year-on-year to EUR 1,197 million, followed by garments and accessories (EUR 710 million), up 50.1% year-on-year. Revenue from perfumes and beauty rose 20% to EUR 119 million. By region, the Asia-Pacific region (excluding Japan), which is dominated by Chinese mainland markets, surged 28% to EUR 1,447 million.
In the past year, Hermès's operating income reached 8.982 billion euros (about 62.6 billion yuan), net profit of 2.445 billion euros, up 42% and 77% year-on-year, respectively, and profit margins reached a record 39%. The Asia-Pacific market recorded a 45% increase.
Public information shows that Hermès was founded in the 1830s and has a history of 185 years. Headquartered in Paris, France, it operates 306 stores worldwide, with 16 product departments such as bags, ready-to-wear, shoes, watches, jewelry, perfumes, and home furnishing.
Everyone will not be unfamiliar with Hermès, but there may not be much to know about the Bertrand Piage family behind it. This is a century-old family that has been "rich for more than six generations", according to the "2022 Hurun Global Rich List", with a total wealth of 645 billion yuan, ranking tenth.
Hermes founder Thierry Hermès, who dreamed of becoming a harness craftsman since childhood, came to Paris at the age of 13 to learn art, and after more than ten years of hard study, mastered various techniques for making harnesses. The first leather goods store was opened in 1837 and won the favor of many European aristocrats with its exquisite craftsmanship and simple and elegant products.
In the 1870s, Emile Charles Hermès "inherited his father's business" and moved Hismès to 24 Boulevard des Faubourgs, the most prosperous part of Paris, bringing his products closer to the royal family. In addition, he began to build specialty stores, carry out retail business, and expand into European, North American and Asian markets.
With the rise of the automobile industry, horse-drawn carriages were gradually eliminated. Charles's youngest son, Emile-Maurice Hermès, boldly innovated and introduced alternatives to harnesses – suitcases, wallets and handbags. In aristocratic society, the equipment in hand can best show the status of status, which used to be saddles and reins, and now it is replaced by bags.
The birth of Hermès' first leather handbag stemmed from love. Because his wife complained about not being able to find a handbag she liked, Morris decided to make one herself, and he was the first person to apply a zipper to a leather goods. In the mid-1930s, Hermès launched the "Sac à dépêches (Briefcase)", which was later used by Princess Grace Kelly of Morocco to cover her pregnant belly, and the American "Life" magazine used the photo as the cover, which became a hit. Robert Dumas, then president of Hermès, renamed the product "Kelly Bag".
Maurice Hermès had three daughters, found three good sons-in-law – Pierge, Dumas and Guérand, and from the fourth generation onwards, Hermès was divided into three family branches. He passed the CEO on to his son-in-law, Robert Dumas, who introduced hermès' first silk scarf.
In 1978, Jean-Louis Dumas took over the business after the death of his father, and in 30 years the group's sales increased by about $2 billion and began to diversify into clothing, jewelry and other fields. In 2010, Jean-Louis Dumas died and his nephew Exel Dumas became the sixth generation of the family and was appointed CEO four years later.
According to a report released by Bain & Company, sales of Chinese mainland personal luxury goods reached 471 billion yuan last year, an increase of 36% year-on-year, more than double that of 2019. According to this trend, China is expected to become the world's largest luxury market in 2025, and consumers under the age of 25 will become the main force, accounting for 65%-70%.
Hermès naturally doesn't miss it. Beijing International Trade Mall flagship store, Shanghai Plaza 66, Suzhou and Ningbo stores have been opened one after another, at the end of March this year, the first store in Henan opened in Zhengzhou, on the opening day, some customers waited outside the store for 4 hours, almost all the goods were sold out, and the single-day sales exceeded 100 million.