Hermes Plans India Store

  1. From the WSJ:

    Hermes doesn’t believe in being an early starter. It didn’t open its first store in China until 1998, six years after rival Louis Vuitton dived into the emerging market.

    Now, Hermes is planning its first store in India – and again is on the tail end of luxury brands opening stores there. The French brand will open its boutique in New Delhi next year, Hermes Chief Executive Patrick Thomas said in an interview Thursday.

    “We are never the first,” he said. “To open a store in a big city, you need to have a certain amount of renown already. We only open after we’ve worked to inform people about Hermes.” He says Indians buying Kelly bags and silk scarves at Hermes boutiques in New York and Paris have helped make the brand’s name better known back home.

    This year, labels such as Gucci and Jimmy Choo are due to open their first India addresses. Valentino and Ferragamo both signed leases last year. And Louis Vuitton, usually one of the first brands out of the starting blocks, has been present for four years already.

    Hermes will also be playing catch up in China this year, where it plans to increase the number of stores to 13 from nine. But China isn’t yet the promised land for Hermes that it is for other luxury brands. Mr. Thomas says China is the same size as Spain in terms of revenue for the family-controlled company.

    Sales could take off in China in a couple of years, according to Mr. Thomas. Then, he says the brand will have enough exposure to start launching boutiques with local partners, allowing Hermes to accelerate its store opening schedule.

    Hermes’ caution was reflected in its 2006 sales growth, released Thursday. Revenue increased 7.8%, a performance that ranks near the bottom of year-end results for the booming luxury-goods segment. — Christina Passariello
  2. 7.8% is still goood!!!
  3. This is wonderful and I'm happy for all the indian H fans out there :yahoo: Now I'll just go back and wait for them to come to Oslo :love:
  4. i'm of south asian descent, and that's awesome that hermes is coming to india.
  5. Great news and lots of money there!!!
  6. that's sooo cool!!! I have been to India for the last two summer and I am impressed with how many designers have stores there. Hopefully the price exchange is decent though!!! LV, burberry and moschino's prices were decent with the exchange, but chanel was approx 3 times the price and Dior was a bit more!