Strong performance in China market Hermes’ third-quarter sales rose 9.4%

On November 8, the French luxury brand Hermes released the third quarter financial report for the 2018 fiscal year. Benefiting from the excellent performance of the leather goods sector and the Asian market, Hermes sales increased by 9.4% year-on-year to 1.46 billion euros, an increase of 9.6% at constant exchange rates.

According to the financial report, during the reporting period, sales of leather goods and saddles increased by 11.7%, sales of ready-made garments and accessories increased by 11.2%, sales of silk and textiles decreased by 1.8%, sales of perfumes decreased by 1.1%, and sales of watch business increased. 7.2%, other businesses including jewellery, art of living and table art grew by 21.4%.

By region, sales in Asia other than Japan increased by 11.8% year-on-year, with the mainland China market continuing to maintain strength, with revenue increasing by 11.8% to 519 million euros. Sales in Japan and the United States increased by 8.8% and 13.9% respectively, while sales in Europe and France, excluding France, increased by 5.3% and 4.1% respectively.

Hermès Group CEO Axel Dumas said, “Hermes has achieved rapid growth throughout the region in the past nine months. We will maintain an objective attitude towards the future, but we are also grateful for the past.” Over the past few months, the outside world has been worried The luxury market growth in the Chinese market will slow down, but Axel Dumas said: “There has not seen any change in the current stage.” He pointed out that although the tourism retail channel is highly susceptible to exchange rate fluctuations, Chinese tourists spend in overseas markets. Still steadily.

Bain, an internationally renowned consulting firm, has published the “China Luxury Markets Annual Report”. After three years of deceleration, China’s personal luxury consumption has grown strongly last year. Among them, “Millennial Generation” has become the main consumer of luxury goods in the Mainland. .

According to public data, in 2017, sales of luxury goods in mainland China reached 142 billion yuan, an increase of 21% year-on-year. The growth rate far exceeds the global average and the world’s major consumer markets, and the development prospects are broad. Among them, sales of cosmetics, jewellery and women’s wear products led the growth rate. The growth rate in 2017 was 28%, 27% and 24% respectively. This high growth was mainly due to the growth of online channels and young consumers. According to statistics, the proportion of online consumption increased from 6% in 2015 to 9% in 2017.

In fact, since last year, Hermes has made a lot of attempts on the Internet. Last October, Hermès opened a time-limited store on the Wechat public account to launch the Apple Watch Hermes Series 3, a smart watch with Apple. In December of the same year, four men’s and women’s shoes were sold through the Wechat channel. One of the Player women’s sneakers was only available in mainland China.

Hermès, which has made China its core market, began to accelerate its online layout this year. The Beijing Business Daily reporter learned that at the beginning of this year, Hermès launched the H-pitchhh App game to attract young consumers. In March, Hermes opened the fourth limited-time experience store on Wechat to launch the 2018 men’s spring and summer collection. In August, Hermès’ Chinese luxury brands entered the Jingdong official website and TOPLIFE at the same time. In October, Hermès China Online official website was officially launched to establish closer ties with Chinese consumers.

In addition, Hermès is also expanding its offline stores in China this year. It is reported that in January this year, Hermès opened a new store in Landmark Plaza, Central, Hong Kong, and opened new stores in Changsha and Xi’an in May and September respectively. Hermes will continue to open flagship stores in quasi-first-tier cities such as Hangzhou and Chengdu in China, gradually infiltrating the Chinese market. Hermès also plans to add two leather goods factories by 2020 to meet the growing needs of Chinese consumers.

It is understood that Hermès was founded in Paris, France in 1837. It is a world-famous luxury brand. It currently has bags, horses, silk products, women’s wear, men’s wear, jewelry, shoes, perfumes, watches, living art and furniture, belts. Sixteen major product categories such as gloves, hats, enamel jewelry and accessories, and porcelain.