EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Percentage of Sales in Exclusive Brands: 100%
Principal Business: In 1837, Thierry Hermès, a harness-maker, started into business and from
early in the 20th Century developed a business with fine leather goods and luggage, featuring
“saddle stitching.” As the business grew, it was extended into clothing, jewelry, silver, diaries, silk
scarf, etc. Today, Hermès is an international business, operating 96 subsidiaries and subsubsidiaries
and positioned as one of the world’s top luxury brands. Mostly family owned, the
company oversees 338 retail outlets of which 193 are company-owned (80% of total sales). Its
business extends through 18 European countries, nine Asian countries (plus in Hong Kong,
Singapore, and Macao), four countries each in Latin America, the Middle East and Oceania, and
Mexico. Some two-thirds of its merchandise is manufactured in-house from 33 production
facilities located on 27 sites in five countries. Its product lines cover 14 different categories. Some
50% of its sales are in leather goods and saddling (luggage, diaries, small goods and equestrian
items), 19% of sales in ready-to-wear apparel and accessories (shoes, belts, gloves, hats), 12% in
silk and textiles (ties, scarfs, etc.), 6% in perfumes, 5% in watches, etc.
EB Identities: Hermès plus many other brand identities in different categories.
EB skus: N/A
Profile: Hermès entered the home interiors sector in this period, opening a store in Paris that sells
upholstery, fabrics, wallpaper, rugs, furniture, and so on. Also, the company opened its first
dedicated men’s wear Hermès boutique in New York City on Madison Ave. The world’s
weakening economies did not affect its business, while its operating income shot upward by
44.3% to € 668.2 million. For 2011, Hermès reported its total revenues up by 18.3% to € 2.8
billion. Some 13 new stores were opened and four concessions acquired. Notable sales growth
came in silk and textiles, up 23% from the introduction of new collections, ranges of product and
styles. Perfume was up 23% in sales, jewelry up 27% in sales, tableware up 17%, and other
significant gains.
Procurement Contacts: N/A
HIGHLAND GROUP HOLDINGS LIMITED
27 Baker St., London W14 8AH United Kingdom
Tel: +44 2844-561-1010
Fax: +44 2844-561-1020
www.houseoffraser.co.uk