Luxury Tycoon Hermes Strengthens The Development Of Its Exclusive Stores

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French luxury goods tycoon Hermes Group has published its mid-year financial report a few days ago which showed significant increase in the performance of its own-brand stores and therefore, Hermes will strengthen its expansion to enter new markets or open more stores in the existing markets.

The data shows that the total operating revenue of Hermes Group has increased by 7.6% in the first half to 875 million euro. The revenue of its self-own brand exclusive stores increases by 19%. Except in Japan, the revenue of its global exclusive stores has increased. However, its wholesale business of perfumes, watches and accessories have dropped by 22% which is a drag on the growth rate of its overall revenue.

The strong contrast of the two main businesses’ performances, Hermes group has to go with the flow. They announce that they will open eight more exclusive stores by the end of this year, among which three of them will be open in Sao Paulo of Brazil, Istanbul of Turkey, and Panama if Central America and it is the first time for Hermes to go into these three markets. The other five stores will be open at Chinese Taipei, Shenzhen, Hong Kong, Macao and Calgary Canada.

Hermes is also planning to establish its fifth “Maison Hermès” in Shanghai; the other four are in Paris, New York, Seoul and Tokyo.

Hermes starts from making horse gear and has more than 170-year history so far. Its current main lines include leathers, silks, clothes, watches, perfumes and so on. Hermes ranked the second in the Forbes 2009 the World’s Top Ten Luxury Brands list, only second to French luxury brand Louis Vuitton.

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