Hermès

Thierry Hermès didn't start with much. Born in 1801 to a French father and German mother, he lost his family to disease and war as a young man. Orphaned and alone, he moved to Paris in 1821 with little more than his skill in leatherworking.

"I had nothing but my hands and my determination," Thierry once said.

Those hands would prove invaluable. In 1837, Thierry opened a small harness workshop in Paris, catering to European noblemen. His stitching technique was unique - done entirely by hand using two needles and waxed linen thread. The quality was unmatched.

But it wasn't easy. Thierry worked long hours, often sleeping in his workshop. Competition was fierce. Many doubted a German-born craftsman could succeed in Paris's elite circles.

They were wrong.

Thierry's harnesses and bridles gained a reputation for exceptional quality. Awards followed. First prize at the 1855 Exposition Universelle in Paris. Again in 1867.

"Quality is the key," Thierry insisted. "It opens every door."

By 1880, Thierry's son Charles-Émile had taken over, moving the shop to 24 Rue du Faubourg Saint-Honoré. Smart move. The new location put Hermès in the heart of Parisian high society.

Then came cars. Horse-drawn carriages were disappearing. The business could have collapsed.

It didn't.

Charles-Émile's sons, Adolphe and Émile-Maurice, saw opportunity. They expanded into leather accessories and clothing. In 1918, they introduced the first Hermès wristwatch. In 1922, the first leather handbag.

"We don't just sell products," Émile-Maurice said. "We sell dreams."

Those dreams proved resilient. Through wars and economic turmoil, Hermès endured. By the 1950s, its silk scarves and ties were iconic. Grace Kelly made the "Kelly" bag famous. Later came the legendary Birkin.

Today, Hermès is worth over $200 billion. Its bags can command waitlists years long. Not bad for a small harness shop.

"We are still craftsmen at heart," says current CEO Axel Dumas. "That will never change."

The secret? Unwavering commitment to quality. Refusal to compromise. And perhaps most importantly - patience.

"Time is our greatest luxury," Jean-Louis Dumas once said. "And our greatest asset."

Lessons

Lesson 1: Scarcity creates desire. You can't just walk into a Hermès store and buy a Birkin bag. There's a waitlist. Sometimes years long. This isn't an accident. It's strategy. By limiting supply, Hermès has turned its bags into objects of extreme desire. "We create frustration. But we create frustration with a smile," says CEO Axel Dumas. This artificial scarcity has made Hermès bags more valuable than gold in terms of investment returns.

Lesson 2: Don't chase trends. You might be tempted to follow every fashion trend. Don't. Hermès has stayed relevant for nearly two centuries by focusing on timeless design. "We don't have a marketing strategy, we have a product strategy," says CEO Axel Dumas. This approach has made their products enduring status symbols, not fleeting fashion statements.

Lesson 3: Patience is a virtue in business. Hermès thinks in generations, not quarters. They're willing to wait for the right opportunity. When they launched their first perfume, they spent 15 years developing it. "Time is our greatest luxury," Jean-Louis Dumas once said. This long-term view allows them to make decisions that might seem counterintuitive in the short term, but pay off hugely over time.

Speeches and Interviews:

• Talking HERMÈS with Guillaume de Seynes, Executive Manager
• Axel Dumas, CEO of Hermès, at Les Mardis de l'ESSEC
• Hermès: 'We Want to Be Bigger, But Not Fatter' - Interview with Axel Dumas

Book Recommendations

• Little Book of Hermes
• Hermès: Straight from the Horse's Mouth

Further Readings

• Six generations of artisans | Hermès Australia
• Hermès - The Strategy Insights Behind The Iconic Luxury Brand
• The Strategic and Financial Analysis of Hermès
• Continued brand heat drives growth at Hermès | Vogue Business
• Hermès: The Complete History and Strategy - Acquired Podcast
• Analysis on the Marketing Strategy of Hermes
• Analysis on the Marketing Strategy of Hermes - Atlantis Press