Six Generations of French Luxury Excellence
In luxury, there’s Hermès… and there’s everyone else. Stewarded by one French family over six generations, Hermès sells the absolute pinnacle of the French luxury dream. Loyal clients will wait years simply for the opportunity to buy one of the company’s flagship Birkin or Kelly bags. Unlike every other luxury brand, Hermès:
- Doesn’t increase supply to meet demand (hence the waitlists)
- Doesn’t loudly brand their products (IYKYK)
- Doesn’t do celebrity endorsements (stars buy their bags just like everyone else)
- Doesn’t even have a marketing department! (they barely advertise at all)
And yet everyone knows who they are and what they represent. But, despite all their iconoclasm, this is not a company that’s stood still for six generations. Unbeknownst to most, Hermès has completely reinvented itself at least three times in its 187-year history. Including most recently (and most dramatically) by the family’s current leaders, who responded to LVMH and Bernard Arnault’s 2010 takeover attempt by pursuing a radical strategy — scaling hand craftsmanship. And in the process they turned the company from a sleepy, ~$10B family enterprise into a $200B market cap European giant. Tune in for one incredible story!
More on the episode
Links (and Visuals!)
- Quartr's Hermès: Two Centuries of Craftsmanship and Excellence (with graphs)
- 00:23: Haut a Courroies, the “high-belted bag” to carry saddles and boots
- 00:45: Chaine d'ancre, “Chain of anchors”
- 00:49: Jeu des Omnibus et Dames blanches, “White ladies at play”
- 00:53: Screen printing each color on a scarf individually
- 00:57: The Hermès oranges
- 01:06: Sac à Dépêches (today: the Kelly Bag)
- 01:07: Grace Kelly photo in LIFE Magaine
- 01:26: Steps to sew a saddle stitch
- 01:48: The Birkin Bag
- 03:17: Petit h
- The saddle stitch (video)
- Inside the Saddlery at the Faubourg
- Hermès 2022 Annual Report
- Axel Dumas Interview
Carve Outs
corrections
- You cannot and should not actually wear a Birkin over your shoulder, as described in the episode. (How gauche of us!) It’s a tote, and should be carried by hand or in the crook of your arm. Thank you to our more cultured listeners for pointing this out. :)
- The H51 bylaws are actually available publicly! (In French, naturally.) Big thank you to listener Nicholas Cullen for sending our way. A few highlights from him:
- Article 11 says only descendants of Emile Hermès and his wife Julie Hollande can be shareholders.
- Article 7.2.2 says shareholders can ask the company to buy their B shares from them starting in January 2041.
- Article 19.3.4(iii) states that any transfer of Hermès International shares to any person requires a 3/4 majority shareholders’ vote, except in the case where an H51 shareholder exercises its right under article 7.2 to ask the company to buy its B shares for a mix of cash and Hermès International shares following the end of the lock-in period.
- Not a correction, but Hermès is officially Acquired’s biggest season episode of all-time. We’ve been blown away by the response and how it’s expanded the audience to so many new people (welcome!). Making it was truly one of the greatest joys we’ve had in the past decade of Acquired, and we’re so glad you all are enjoying it too!