The hard times have struck all businesses, be it the regular ones or those in the ultra-luxe category. But yes, there are a couple of names like Gucci, Cartier and Armani that have opened new stores in different regions all over the world. But Hermes is not one of them. Empire expansion is not on the brand’s priority list. The company rep was heard saying that the financial turbulence will last another year or two. Watches and jewelry are not so popular but looks like certain exotic-skin Hermes bags is running waiting lists for several years.
Now to meet with the growing demands of the fashion world, Hermes has started breeding its own crocodiles on farms in Australia. Ouch! Now, this might hurt the animal lover within but we are told that some three to four crocodiles make one Hermes bag.
The brand has its leather goods accounting for 40 percent of its business. Agreed that the wealthy consumers are spedning less but they are remaining loyal to their brand.So, Hermes does have a chance of scraping a little too well through the recession.