Wednesday, 22 July 2009

The Hermes Birkin Is Still A Hot Commodity – 22/7/09


Due to the allure of the mighty Birkin and Kelly lines, Hermes’ sales are still reaching new heights. A
Bloomberg article revealed that Hermes’ second quarter revenue has risen 12 percent. This increase can be tied to the voracious appetite of the ‘Asian Tiger.’


This article goes on to say that leather goods and handbag sales rose an incredible 33 percent and ready-to-wear sales (we say: thanks to Jean-Paul Gaultier) rose 13 percent – no easy feat in these times.


In a press statement, Hermes seemed quietly confident, saying, “Sales have been particularly dynamic in our own stores. We will keep investing in the second half of the year, opening or renovating more than 10 stores in Asia and the U.S.


But not all product lines were walking out the door. Hermes clients’ seem to have already invested in tableware (it declined 30 percent), watches (11 percent drop) and fragrance (3.9 percent slump.) But let’s go back to the positives. Hermes’ core products (think: Kelly/Birkin) are the coveted prizes du jour in the Japanese/Asian markets. With continued strength in these staple products we are confident the ‘Birkin Index’ will keep on rising for a long time to come.

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au