Friday, April 07, 2006

French luxury goods stalwart Hermes


Followers of the HBO series Sex in the City will remember the episode in which Samantha (Kim Catrall) went to absurd lengths to acquire a Hermes Birkin handbag. Samantha's over-the-top pursuit of the handbag could very easily serve as a proxy for the actual heights that legions of real handbag-obsessed women will climb in order to sink as little as $5,000 and as much as $80,000 into owning this bag. What is it about the rounded double handle, tiny metal feet, the fold-over top and the belt-like closure that wraps around the bag's body that drives women to endure the reported two-year waitlist? Well for one thing, the Hermès Birkin bag is the handbag equivalent of a Rolls-Royce or a dozen illicit Cuban cigars.

First introduced in 1984, the bag has surged in popularity over the past couple of years due to television spotlights and unexpected media exposure, like Martha Stewart showing up for a court appearance carrying one in a warm shade of brown. The handbag's creator, French luxury goods stalwart Hermes, is use to all the attention however, given the equally global popularity of Hermes ties, scarves, and fragrances. I spoke recently with Robert Chavez, CEO of Hermes USA, to get to the bottom of all the excitement.

Harbus: How has Hermes been able to maintain its prestigious image?
Robert Chavez: The company has maintained its prestigious image because of its commitment to quality and craftsmanship that it has adhered to since the day it started back in 1837. We continue to be very committed to hand-crafted products created by the finest craftsmen in Europe and to making products of the finest materials.

Harbus: Was the company surprised by the wild success of the Birkin Bag?

RC: Obviously we expected to have a good response to the bag, but we were surprised by the extent of the bag's popularity. I think one of the things that makes it so desirable is that it is very functional. Also, I think our clients appreciate the quality of the leather, the quality of the workmanship, and the beauty of the design. The bag was designed in house and inspired by Jane Birkin herself.

Harbus: Does product placement on television have an impact on sales?

RC: The results from a product being placed on a television show can be remarkable. It happened to Hermes a couple of years back when one of our bags was featured on an episode of Sex in the City. Part of the episode focused on the lengths one of the characters was going to in order to obtain our Birkin bag. Immediately after the show, our phones started ringing all across the country.

Harbus: How do products get placed on television shows?

RC: For Hermes, it is really happen stance. Generally, someone will call us and make a request to put Hermes products in their show or to have someone on their show use Hermès products. It's great when it happens, but we don't chase after product placements.

Harbus: Is counterfeiting a problem, given the popularity of the Birkin handbag.

RC: We are very diligent about pursuing counterfeit products that reach the market and we take action on them when necessary. We take counterfeiting seriously because this type of infringement on our registrations and trademarks is very damaging to our brand. For instance, if a person is walking down the street and sees someone carrying what looks like a Hermes bag from a distance, they might not know for sure if the bag is an actual Hermès handbag. If the person makes a mistake an assumes that a counterfeit bag is a real Hermes bag and the counterfeit bag is of poor quality, the person might walk way believing that Hermès does not have the level of craftsmanship that they thought it had.

Harbus: What exactly does craftsmanship mean?

RC: In addition to only using the finest materials, we are able to make extremely high quality handbags because only one craft person makes each of our bags from start to finish. Most manufacturing today uses an assembly line, which results in one person doing a couple of parts of a bag and then someone else doing another couple of parts of it and so on. At Hermès, one person works on a handbag from start until finish. It takes anywhere from 18 to 24 working hours for one person to complete one bag.

Harbus: So what's new at Hermes?

RC: Every year we continue to come out with new and exciting things. This year we introduced a new women's fragrance, Merveilles. Also for this fall season we launched our new women's ready-to-wear collection designed by John Paul Gauthier.

Harbus: Besides being French, why else was John Paul Gauthier given the nod?

RC: Hermes became a 35 percent investor in John's company a few years back, so the relationship was already there. When Martin Margiela, the pervious women's wear designer, contract was nearly up, we started discussing who would take over and John seemed like the logical choice. And as expected, John has been terrific.

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