Hermès, a name synonymous with luxury, is renowned for its high-priced handbags, yet its artistic director, Pierre-Alexis Dumas, challenges the perception of them being ‘expensive’.
Dumas recently spoke on ’60 Minutes’, where he articulated his viewpoint that Hermès bags, although priced at $10,000 and above, are ‘costly’ but not ‘expensive’. This distinction, according to Dumas, lies in the product’s quality and craftsmanship. He stated that an ‘expensive’ product fails to deliver on its promises, despite its high price. In contrast, Hermès bags are ‘costly’ because they are crafted with meticulous attention, resulting in a quality product.
The iconic Birkin bag, for instance, illustrates this philosophy. Introduced in the 1980s, Birkin bags can exceed six figures, but each one is hand-sewn using the brand’s signature saddle-stitching by artisans who train for years. This intensive process, coupled with the materials and time involved, justifies their price.
Despite their high cost, acquiring a Hermès bag is often a significant challenge. Even affluent clients may face long waiting periods for popular models like the Kelly or Birkin bags, named after Grace Kelly and Jane Birkin, respectively. Martin Roll, a global business strategist, highlighted that Hermès’ strategy of maintaining product scarcity is central to its brand identity. This approach not only boosts the brand’s exclusivity but also helps it endure economic fluctuations, such as the recent downturn in the Chinese luxury market.
Rumors have circulated suggesting Hermès manipulates product scarcity to bolster exclusivity. However, Dumas refuted these claims, emphasizing that the brand lacks a conventional marketing department. He humorously described Hermès as ‘an old lady with startup issues’ and dismissed notions that the company withholds products. According to him, any available stock is promptly placed on shelves, underscoring the brand’s transparency in handling inventory.
The enduring appeal of Hermès bags also owes much to its stable family ownership, which provides consistent leadership and strategic vision. This independent operation model is increasingly rare in today’s corporate landscape, offering the brand a unique edge in maintaining its legacy and allure.
Pierre-Alexis Dumas’ perspective invites a re-evaluation of the terms ‘expensive’ and ‘costly’. Through precise craftsmanship and limited availability, Hermès sustains its stature as a luxury icon, eroding traditional views on pricing and value.
Source: Businessinsider
