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Apparel Industry: The Perfect Combination Of Art And Commerce

2011/10/11 16:04:00 38

Hermes is the world's top luxury brand, and has a history of over 170 years.

The company's products cover leather products, scarves, men's and women's wear, perfume, watches, hats, shoes, life works of art, jewelry and so on 14 kinds of products.

The company sells its network all over the world, and in 2010 the company owns it all over the world.

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There are 317 stores.

In 2010, the company's sales revenue and net profit were 3 billion 185 million US dollars and 559 million US dollars respectively. Hermes went to the Paris stock exchange in 1993, and the share price increased 60 times in the 18 years after that, which is far less than the 2 increase in the French SBF120 in the same period.

The data show that the valuation level of the company has a significant positive correlation with the growth of company performance over the years.

In the past 1993-2010 years, the annual compound growth rate of the company's operating income and net profit was 11.5% and 17.3% respectively.

Accordingly, the annual composite growth rate of the company's share price is as high as 25.5%, far exceeding the growth rate of performance.

Once again, the company's share price in the continuous growth stage often exceeds the growth rate of the performance itself because it can get an overvalued premium.

Looking back on the development of Hermes for more than 170 years, the company has undergone four important pitions. It is these four important pitions that have laid the industry status of the world's top luxury goods.

The first pformation was from 1837 to 1918, and the pformation from a harness family to a leather product manufacturer was initially successful; the second pformation was from 1918 to 1978, and the company passed.

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Technology + excellent quality + multiple products, the establishment of a modern luxury enterprise status; the third pformation was from 1978 to 1992, through the rich product mix + absorbing the essence of global culture, Hermes has stabilized its world's top luxury brand status; the fourth time is listed in 1993, so far, the company entered a rapid development period, the main products go hand in hand and + performance steady growth.

We believe that the key factors of Hermes's success come from four aspects: (1) emphasize consistency and consistency of brand connotation; (2) always maintain high quality and high priced products; (3) high direct battalion and waiting for customized control channels.

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Loyalty; (4) adhere to the word of mouth marketing based luxury promotion mode.

(5) continue family management to ensure the good inheritance of brand culture.

The core of its success can be summed up in one sentence: insisting on the perfect combination of art and commerce.

We believe that the success of Hermes can provide the following reference for domestic brand clothing enterprises. (1) the premise of luxury brands is the foundation of the local economic culture and the degree of world recognition (2) the perfect pursuit of quality is the foundation of the luxury brand (3) the proportion of high direct battalions is a necessary condition for maintaining the luxury brand (4) connotations are the prerequisites for the success of many brands or single brands.

Conclusion: Although there is no company close to or close to Hermes in the field of local brand clothing, the successful experience of Hermes can have important learning significance for local brand clothing enterprises, especially those interested in developing high-end brands.

We firmly believe in domestic brand clothing enterprises, and believe that with the improvement of comprehensive national strength and the increasing international recognition of Chinese culture, the Chinese mainland will produce high-end or even luxury brands in the future, providing investors with considerable profit and profitability with their high profitability and sustained growth.