The Sixth Generation Of Hermes: Mysterious Desire Maker

Axel Dumas (Axel Dumas) is the sixth generation of empress Herm's s Luxe empire. He became the chief executive of the company in February this year. At that time, he had a secret in his heart. After four days, he was about to change the designer of the clothing line of the important women's clothing manufacturer of Hermes, and now the most popular designer is Christopher Lemerre Lemaire. At that time, we sat in his office on the tenth floor of the building, from which we could overlook the beauty of Montmartre hill. This is the interview opportunity that I spent weeks negotiating.

So what does the 44 year old CEO want to talk about? "The main strength of Hermes lies in the love of his craft." This is the first thing he said in accent but fluent English. Ten seconds later, he said, "we regard ourselves as creative artisans." In the thirty minute interview, he said, "the philosophy of Hermes is to keep handicraft alive." Two hours passed, and no matter how I asked, Dumas still has reservations about details about how Hermes has become the fastest growing company in the $300 billion luxury market. From the $94000 crocodile skin T-shirt to the $1275 beach towel, he is very secretive about the art of selling these products. Of course, Dumas did not disclose that he was going to let the 36 year old Nad Ge Vanhee-Cybulski, who was previously the design director of the women's clothing brand The Row of the Olsen twins (Olsen twins), to replace Lemerre's position, knowing that he would soon know the news with the rest of the world.

But his insistence on all these ambiguities and secrecy work shows us what prompted the price of Hermes to rise by 175% over the past five years. In fact, in the list of the most innovative companies in the world compiled by Forbes, the 177 year old Hermes ranked thirteenth in front of those companies such as Netflix, Priceline and Starbucks (Starbucks). The ranking is determined by examining the extent to which the company's stock price exceeds its basic financial status and assets, that is, every company has a market innovation premium. The high price of Hermes - LVMH's willingness to buy a few years ago, and the small number of shares that Hermes circulated outside - all helped - not to rely on technical efficiency, which is the secret of success for many other companies on the list. It is not entirely supported by the "handicraft", which is constantly duplicated in the mouth of Dumas, and of course it is also an indispensable foundation.

In Hermes, any lasting premium comes from a sense of mystery. After all, selling a piece of goods ultimately comes down to one point: price. But the sale is not a beautiful thing for necessities? It needs a more complicated formula. Hermes is already familiar with it: last year, the company's annual revenue reached 5 billion US dollars, and its operating profit was US $1 billion 690 million, which set a historical record. This achievement made Hermes become the fastest growing company in the past six years in the luxury goods industry, thanks to the promotion of a series of brand promotion and marketing activities. Its cooperation is just like the stitch of Birkin bag.

The return of this soft innovation is enough to make the founder of a social media start-up feel blush. In studying the shareholding structure of Hermes, Forbes estimated that the Hermes family (the third generation of the Hermes family did not leave male offspring. The offspring of the three daughters constituted the three branch of the family, which is still known as the Hermes family). At least five members came to our global level. Billionaires List. The family's total wealth is now up to 25 billion dollars, surpassing the wealth sum of the the Rockefellers, the the Mellons and the Ford family (the Fords), the Rockefeller family (the).

As the best in the world make money One of the machines is the development of Hermes in a creeping family structure that tends to stifle rather than promote innovation. Its creation can be attributed to three dates.

The first one dates back to 1837, when a Thierry Herm leather s manufacturer of leather harness opened a shop in Paris. For the upper class society that relies on horse racing, the quality and beauty of Hermes's bridle and harness are unmatched. Charles Emil s (Charles-Emile Herm s) is Thierry's only son. He inherited his father's business. He moved the shop to No. 24, 24 Rue Du Faubourg Saint-Honor, which is the location of Hermes's headquarters today. Charles Amir has two sons. They are Adolf s (Adolphe Herm s) and Amir Maurice (Emile-Maurice Herm s), and the two brothers turn the family business into Hermes brothers. But in the end, Adolf thought that the company had no future in the age of horse drawn discarding. After he left, he continued to run by Amir Maurice. Amir has four daughters (one of whom died in 1920), which explains why the family members behind Hermes are not surnamed Hermes. At present, the group that controls this group is the descendants of Amir's daughter. They are the fifth generation and the sixth generation of the family.

The second turning point of Hermes is closer, in 1989. Throughout the twentieth Century, Hermes has been one of the world's best luxury brands. But the company specializes in craftsmanship, and each leather product is made by more than 3000 skilled craftsmen in 12 studios in France. In this case, Hermes can only jog instead of flying. Axel Dumas's uncle, Jean-Louis Dumas, served as chief executive of Hermes during the period from 1978 to 2006. Under his management, the company's share was split into a Russian Doll group consisting of six holding companies. On top of them is the ingenious double-layer management structure designed by Jean Louis: one layer is more focused on ownership, Amir. Hermes Emile Herm s SARL, a family named after family, is composed of family members who are responsible for budgeting, approving loans and exercising veto power. On the other hand, Herm s International is responsible for the daily management of the company and its cooperation with the outside world (in its 11 board members, the non family members currently occupy four seats).