Words from H's Chief Executive

  1. From Singapore's URBAN (originally from NYT, I think?)

    NO HORSING AROUND
    Luxury brand Hermes, which has its humble beginnings in the horse, is on a quest for perfection

    Patrick Thomas, the elusive chief executive at Hermes seemed downright expansive over lunch recently at his hotel, only a few blocks from his new store in New York City's financial district.

    For those who think of the company, which has US$1.9billion (S$2.9 billion) in annual sales, as the purveyor of conservative silk scarves with bridle motifs and capacious handbags carried by Grace Kelly, the Hermes windows were eye-opening.

    On one side is a motorcycle with a black leather outfit, while on the other, a deconstructed horse sculpture stands near a superb black saddle.

    Thomas is the first person outside the family ever to run the company, which is public but still very much controlled by the descendants of the founder. He offers opinions on the company's philosophy and new ventures.

    Do you consider Hermes a daring company?
    Yes, within reason. The motorcycle is just the modern expression of our origin: the horse. And the horse in the window was made with spare parts from a car.

    Hermes is known as a leather goods brand run by perfectionists. Are you a perfectionist?
    If you knew why some things are rejected by our craftsmen, you would say: "These people are crazy." The quest for perfection is crazy, but we all insist on it.

    One luxury analyst said that Hermes is a model every other luxury brand aspires to be, but added that he would like to see better earnings growth and momentum because you are so firmly at the top of the pyramid.
    Today, much of what we call luxury is no longer luxury. Call it luxury if you want, but some companies no longer have the quality. At Hermes, a woman walked in with a saddle not long ago, and she complained it needed restitching. We checked the records - we keep all records, even of repairs - and it was her grandmother's saddle, purchased in 1937. We fixed it, of course.

    Your Birkin handbags sell for as much as US$10,000. Is there any limit, a point where consumers will say: "No, not one euro more"?
    There is always a price limit. The best example is Japan. This year, the yen went down sharply against the euro, so we had to increase our prices. Many people told us, they were not going to pay; everyone is sensitive to price.
     
  2. My very favorite media quote of all time! I just love that.
     
  3. Don't you just? :nuts: I like knowing that I could buy any product from H today, and when my great-great-granddaughters inherit it after I'm long gone, they can still go back and get it repaired or refurbished like new.
     
  4. I know! I tell my husband this all the time...and he keeps reminding me that I'm about to be 37 and we still don't have kids. :rolleyes:
     
  5. Great article... thanks for posting. It's nice to know that they realize there is a limit to how much people are willing to pay for a purse.
     
  6. Cynthia, pls tell your DH I was 37 when I got pregnant with my first son....there's plenty of time out there! :smile:

    Where else can you buy a product that will last after being ridden for 70 years and the manufacturer not only has the record of sale, but will then repair it???? That's just insane by today's "buy and toss" mentality! This sort of foundation and philosophy is essentially why I don't mind spending extra to purchase Hermes!
     
  7. Thanks for the article! Interesting about the fact that they realize that people won't pay for purses past a limit...