Hermes: Weathering The Pandemic Storm, Against All Odds.

When I travel to NYC, I always stop into Hermès on Fifth avenue. I enjoy their ties, shoes, belts, and colognes. As such, I was curious as to how the brand is faring in this tumultuous and strange time of 2020. Upon a bit of research I found media mentions of the super luxury brand documented in the past few months. Ranging from Hermès products being offered at hotels as an incentive to stay at hotels in the covid era (Forbes, June 2020)- brilliant joint marketing, Hermès bags and other luxury goods becoming a bonafide hard asset and investment (Daily Telegraph, 2020), sales remaining strong during covid (Wall Street Journal, June 2020), and the money market correcting (CNBC, June 2020). The common thread throughout these articles is how and why Hermès is weathering, surviving, and by many metrics thriving during in Q2 of 2020 as covid rages worldwide. Counterintuitive perhaps, but nonetheless, true. I think this is a lesson we would all do well to consider and apply- a strong brand can carry a business through some of the worst times in history, including but not limited to the most widespread and serious health crisis our world has seen in more than 100 years. If Hermès had just been simply retailing nice fashion accessories for the last several decades, it’s likely they would be currently faltering. But no- they have gone far beyond just selling high end products, they’ve created an identifiable lifestyle brand that resonates with many strongly enough to inspire loyalty and strong enough branding that their products are thought of as financial assets instead of mere expenditures. Below you’ll find a link to a cover article that appeared in Forbes several years ago. While recent media mentions and articles describe how Hermès is doing in the financially in the last six months, this article really show how they got there. “Inside Luxury’s Secret Empire” is an apt title. Brands that have struggled during cover were largely struggling prior to covid, and those thriving in January 2020 are mostly still thriving today.

https://www.forbes.com/sites/susanadams/2014/08/20/inside-hermes-luxury-secret-empire/?sh=47605fb2ad2f