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Hermès – Strategy Insights Of Luxury Brand

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Hermès Strategy Insights Of Luxury Brand,Startup Stories,Latest Business News 2019,Strategy of Luxury Brand,World Most Valuable Luxury Brand,Best Global Brands,Hermès Paris,Insights Behind Hermès Luxury Brand,Hermès History,Hermès Founder,Hermes Brand History


Hermès, a French fashion luxury goods manufacturer, has been ranked consistently as world’s most valuable luxury brand and one of the best global brands.  Hermès, which is also known as Hermès International or Hermès Paris, has maintained an iconic status in the luxury market with products ranging from leather goods, perfume and lifestyle accessories to watches.

In 2018, the Company’s net profit rose to 1.41 billion euros, a 16 % increase from 1.22 billion euros in 2017.  Fifty percent of the Company’s profits came from the brand’s leather goods and saddlery products. With competitors like LVMH and Richemont in the luxury business, Hermès still enjoys the top position in the market because of its exquisite craftsmanship and eye for detail through the entire manufacturing process. 

 

History

 

Founded in the year 1837 by Thierry Hermès, the Company’s initial purpose was to build saddles, bridles and other leather riding gear for European nobility.  After taking over the Company from his father, Charles-Émile moved the Company to 24 Rue Du Faubourg Saint-Honore in Paris in the 20th century. This remains the global headquarters of Hermès till date.

Through the generations, the Company slowly expanded from selling leather saddles to other products.  The Company started selling “Haut à Courroies” bags in 1900, which were used by riders to carry saddles in it.  The Company introduced its first leather handbag in 1922, a product which has played a significant role in increasing the popularity of Hermès in the global market. 

 

Strategy

Hermès has a unique strategy in place to ensure it retains its position on top in the market.  Hermès is very strict about the traditional way of manufacturing and rejects any form of mass production.  Every product produced by the Company is handmade by craftsmen who are trained for a period of two to three years.  According to the Company, every product is made from beginning to end by a single person to preserve the product quality and uniqueness.

Jean Louis Dumas, the chairman of Hermès from 1978 to 2006, told Vanity Fair, “We don’t have a policy of image; we have a policy of product.”  Hermès has always claimed, it values creativity more than anything and to this day, maintains a deep connection to its French identity.  Most of Hermès’ products are manufactured in France and 60 % of the Company’s workshops are located in different parts of the Country.

Another strategy the Company uses is giving a sense of exclusivity.  In order to do so, Hermès uses the “Limited Edition” strategy and releases only a handful of products at a time.  The Birkin bag, created by Hermès for Jane Birkin in 1982, remains the most popular product by the Company. One of the reasons behind this is the brand’s strategy to make the customer wait for a few months or a year after making an order.  The cost of each Birkin bag ranges from 7,000 USD to 300,000 USD. Every Birkin bag is made of crocodile skin and has exquisite handiwork by a single craftsman.

The brand continuously collaborates with other ultra luxury brands to maintain its reputation in the market.  Hermès has collaborated with luxury designers like John Lobb, Saint Louis as well as tech mogul Apple. Each collaboration brought the Company media attention and skyrocketed its brand value and sales.

 

Keeping it in the family

For the last 180 years, since the founding of Hermès, it has been run exclusively by the Hermès family.  Currently, the brand is managed by Axel Dumas (6th generation,) who is the sole manager of the Company. The Company maintains its independence and uniqueness by keeping the control within the family. 

 

Even though Hermès  is 180 years old, it still maintains an ultra luxury status because of its ability to evolve by maintaining a perfect balance between tradition and modernity.  With its clever strategy of exclusivity, controlled marketing and limited edition, Hermès is able to engage potential and wealthy clients, which ensures continuous profits and growth of the Company.

 

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Entrepreneur Stories

Wacky Stories About Entrepreneurs

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The world of business is quite serious and can seem intriguing at times.  However, there are many people out there who proved entrepreneurs can have some really interesting personalities.  Here is a list of four crazy things famous entrepreneurs have done.

Wacky stories about famous entrepreneurs

1) Nicolas Berggruen

Famous philanthropist and investor Nicolas Berggruen avoided buying a house for years.  He preferred to travel and stay at various hotels all over the world. This unique lifestyle earned him the nickname of “the homeless billionaire.”  However, Berggruen decided to settle down and bought a house worth $ 40 million in 2017.

2) Yoshiro Nakamatsu

This Japanese inventor is credited for inventing many things like the floppy disk, jumping shoes with leaf springs and a wig for self defense.  He has more than 3,357 inventions to his name. In many interviews, Nakamatsu said underwater diving gives him the best ideas. He also claims to get best ideas when he spends time in his “calm room” made up of 24 karat gold.  Nakamatsu also predicts he would live till the age of 144.

3) Steve Jobs

Steve Jobs, the brilliant mind behind the famous Apple Inc., was also a bit eccentric.  He was known to be a perfectionist, however, he did many things which are considered crazy.  He would soak his feet in toilets in order to relieve stress. At one point, he ate so many carrots, his skin turned orange.  He also stopped taking showers after starting a meat free diet, as he believed the diet would help his body not to produce any body odor.

4) Robert Graham

The American entrepreneur, known for developing shatterproof plastic eyeglass lenses, was also an eccentric person.  He reportedly opened a sperm bank for geniuses, where donation was expected only from Nobel Prize winners. However, the idea did not work out well.

 

Which of these crazy stories about famous entrepreneurs surprised you the most?  Comment below and let us know.

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Yakult Unknown Facts

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Yakult Unknown Facts,Inspiring Facts about Yakult, Interesting Facts 2019, Yakult Amazing Facts, Yakult Facts, Yakult Facts 2019, Yakult History and Facts,Yakult Lesser Known Facts, Yakult Success Story,Most Interesting Facts, startup stories, Surprising Facts About Yakult

Yakult, the famous Japanese probiotic drink, is the perfect example of how an invention turned into a commercial success.  Invented in 1936 by microbiologist Minoru Shirota, the product has gained popularity worldwide. The product is sold by Tokyo based Yakult Honsha, which is known for its innovative marketing ideas.  The Company is now worth $ 10 billion, making it one of the biggest food companies in the world.  Here are some unknown facts about Yakult.

Unknown facts about Yakult

1) The meaning of Yakult is yogurt.  The word is derived from the word ‘jahurto,’ which means yogurt in Esperanto, a language created by L.L. Zamenhof in 1887.

2) Despite being a famous and successful brand, the bottle of Yakult is intentionally kept small by the Company.  According to the Company, the reason behind such a small bottle size is, the drink is meant to be consumed immediately and not be stored for a long time.

3) Yakult Honsha employs women known as “Yakult Aunties,” who go from door to door, selling the Company’s products.  As women channel natural empathy towards family, the Company prefers marketing their products this way, despite having means to other marketing strategies.

4) Apart from health drinks, Yakult Honsha also sells instant noodles, pharmaceuticals and beauty products, all of which are meant to fight cancer cells.

5) Yakult is available in the same flavor in every country except one.  People in Singapore have access to three kinds of flavors—grape, apple and orange.  Moreover, the size of the Yakult bottle also changes in different countries.

6) Yakult manufactures a moisturizer called Yakult PARABIO AC Moisturizing Cream, which is priced at $ 1,000 per bottle.

7) There are various types of Yakult sold exclusively in Japan, each meant for a different organ of the body.  The Company’s Joie drink is intended to keep the large intestine healthy, while the regular version of Yakult is meant for protecting the small intestine. 

Which of these unknown facts about Yakult surprised you the most?  Comment below and let us know.

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Lesser Known Facts About Burt Shavitz

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Lesser Known Facts About Burt Shavitz,Startup Stories,Inspiring Facts about Burt Shavitz, Interesting Facts 2019, Most Interesting Facts, Real history of Burt Shavitz,Surprising Facts About Burt Shavitz, Burt Shavitz Amazing Facts, Burt Shavitz Facts, Burt Shavitz Facts 2019, Burt Shavitz Interesting Facts, Burt Shavitz Success Story

Burt Shavitz is the co founder of the famous American personal care brand Burt’s Bees.  Known as the world’s most famous beekeeper, his face has been gracing every product of the Company since its inception.  Here are some lesser known facts about Burt Shavitz.

Lesser known facts about Burt Shavitz

1) As a child, Burt Shavitz once cycled 100 miles from his parents’ home at Great Neck, N.Y., to Montauk Point and used jails as a way of accomodation.  According to Shavitz, the idea of spending the nights in jails was his mother’s. The police would always inform his mother about his whereabouts and with her permission, let Shavitz spend the night on a prison bench.

2) Shavitz was a famous photographer in Manhattan, but abruptly left the city life and moved to Maine.  Here he lived as a self described “high-class hobo” and did odd jobs to make a living.

3) Shavitz eventually started beekeeping after accidentally stumbling upon a beehive in the woods.  At one point, he had 26 beehives and called them Burt’s bees.

4) Despite being a millionaire, Shavitz preferred to live as a recluse on his 40 acre farm in Maine.

5) He had a simple lifestyle and lived in a farmhouse which did not have any electricity.  He did not have any clocks around his house and scheduled his days around the sun. He would get up at daybreak and sleep when it was too dark to read.

6) Despite being a recluse, Shavitz was an international celebrity and would go on foreign trips where he would be greeted by screaming fans wearing bee costumes.

7) While Shavitz remained unlisted in the phone book, his two golden retrievers Rufus and Pascha had their names listed.  His dogs were his only companions in life and Rufus passed away in Shavitz’s arms. Shavitz would Skype with Pascha during his international trips.

8) He met his future business partner, Roxanne Quimby on the roadside when Quimby was hitchhiking. 

Which of these unknown facts about Burt Shavitz surprised you the most?  Comment below and let us know.

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