Friday, 25 September 2009

Hermes’ CEO Is Downhearted About Japanese Sales Slump – 25/9/09

Hermes International’s Chief Executive Officer, Patrick Thomas, has told Bloomberg that he “is not optimistic at all” about the next six months because of a delayed economic recovery in Japan, the French luxury-goods maker’s biggest market.

Thomas said, “I’m not expecting to see the light of the tunnel before 2010. The Japanese economy is not good and we all feel it.”

The article goes on to say that Japan, where Hermes made 22 percent of last year’s 1.76 billion euros (US $2.6 billion) in sales, had 2.3 percent growth in the second quarter, less than initially estimated.

Hopefully the tide will turn for Hermes in Japan. In the meantime, the brand seems to be making all the right moves to attract luxury clients. For example, last month we reported the launch of a Hermes helicopter that transports customers from the airport to the city (refer to the MO Down for 10 August: Hermes Takes Customer Service To New Heights In Japan.)

And click here for the rest of Bloomberg’s interview with Patrick Thomas.

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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