Hermès

3442 snips

Feb 20, 2024

Discover the unique allure of a luxury brand that thrives on exclusivity and a storied history. From the iconic Birkin and Kelly bags to the meticulous craftsmanship behind their silk scarves, the narrative unfolds on how this brand has significantly reinvented itself over generations. Learn about its commitment to tradition without flashy marketing, how it balances artisan skills with modern demand, and the intriguing family dynamics that shape its future. There's a captivating journey of luxury, resilience, and the art of waiting.

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ANECDOTE

First Hermès Purchase

Ben Gilbert bought his first luxury item, an Hermès belt, after the Acquired LVMH episode.
His wife purchased a Twilly scarf during their honeymoon in Aix-en-Provence.

INSIGHT

Orphaned Founders

Both Thierry Hermès and Louis Vuitton, founders of iconic luxury brands, were orphans.
They rose from humble beginnings, signifying wealth despite their initial circumstances.

ANECDOTE

Thierry's Success in Paris

Thierry Hermès, originally from Germany, quickly gained recognition as a top harness maker in Paris.
His skill and timing during Paris's modernization were key to his early success.

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The Score Takes Care of Itself

My Philosophy of Leadership

Bill Walsh

This book provides insights into Bill Walsh's philosophy of leadership, gleaned from his successful career as the head coach and general manager of the San Francisco 49ers. Walsh stresses the importance of creating a strong culture, setting high standards, and thorough preparation. He advocates for leaders to focus on the process rather than the outcome, emphasizing that 'the score takes care of itself' when the right principles are applied. The book also touches on Walsh's personal struggles and the toll of relentless pressure, highlighting the importance of maintaining a balance between work and personal life. It offers practical advice on leadership, applicable not only in sports but also in business and other fields[1][2][4].

The luxury strategy

Jean-Noël Kapferer

This book, written by two world experts on luxury branding, provides the first rigorous blueprint for managing luxury brands and companies at the highest level. It analyzes the essence of luxury, highlights its managerial implications, and rationalizes the original methods used to transform small family businesses like Ferrari, Louis Vuitton, and Chanel into global successes. The book clarifies the differences between 'premium,' 'fashion,' and 'luxury' and sets out counter-intuitive rules for marketing luxury goods and services. It also explores the impact of digital developments and social networks on luxury marketing.

Swan Songs: Souvenirs of Paris Elegance

Réginald-Jérôme de Mans

This book is a comprehensive guide to the world of classic men's style in Paris, highlighting legendary makers and sellers such as Old England, Arnys, Charvet, and Sulka. It delves into the histories and unique qualities of these establishments, offering a mix of historical context, personal anecdotes, and insights into the craftsmanship and aesthetics of French menswear. The book also explores the challenges faced by small businesses in a globalized and commodified world, while maintaining a balance between reporting and romanticizing the subject matter[4][5][1].

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!

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‍Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.