This week's episode of Caffeinated Deep Dives, we explore Hermes, the most iconic luxury brand in the world and the Birkin Bag, their signature bag. We explore how Hermes has maintained its position as the ultimate luxury brand through craftsmanship, heritage, and time. The episode details how Hermes deliberately creates desire by limiting supply, controlling distribution, and maintaining exclusivity.
Timestamps:
00:00 - Intro
07:22 - The history of Luxury
11:53 - Why luxury brands rose to prominence during the industrial revolution
25:52 - The Hermes Story
40:55 - The Birkin Bag Story
57:34 - The Awards Section
1:22:33 - The Current State of Hermes
The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands (Jean-Noël Kapferer, Vincent Bastien)
The Little Book of Hermès: The Story of the Iconic Fashion House (Karen Homer)
Key Points:
• Hermes is the apex of the luxury industry, with the Birkin bag representing the pinnacle of ultra-luxury goods
• The Hermes brand dates back to 1837, with six generations of family leadership creating a heritage that cannot be replicated
• Luxury brands emerged in the 18th-19th centuries to fill the vacuum left by the destruction of old social hierarchies
• Hermes deliberately limits supply and manages demand to create desire, with each Birkin bag taking 20 hours to handcraft
Notable Quotes:
"What we do at Hermes is sell time." - Axel Dumas, Hermes CEO
"Luxury has a fundamental function of recreating social stratification." - From "The Luxury Strategy" book
What is Caffeinated Deep Dives:
Trung Phan drinks 3 coffees, reads one book and hits record for a deep dive on a single topic in history, business or media.
Let us know what you think on Twitter:
Trung: https://x.com/TrungTPhan
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