HERMÈS - 2019 Universal Registration Document

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OVERVIEW OF THE GROUP STRATEGY

STRATEGY

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The craftsmanship model is one of the pillars of Maison Hermès, and ensuring that it lasts is key to its strategy. The House thus works alongside those who master, preserve and transmit craftsmanship know how through their knowledge of materials and their exceptional techniques. With each new leather workshop, around 250 new jobs are created, promoting a pleasant working environment on a human scale. The House attaches great importance to the continuous improvement of its artisans’ skills and savoir-faire , as evidenced by its école du cuir . The craftsmanship model is at the heart of all the métiers of Maison Hermès, using exceptional materials. To guarantee the long term excellence of this craftsmanship model, the House takes particular care to secure its supplies of materials. Vertical integration, through partnerships and acquisitions, supports the development strategy, with regards to materials as well as techniques and savoir-faire . THE DYNAMICS OF AN EXCLUSIVE DISTRIBUTION NETWORK The exclusive distribution network, consisting primarily of branches run by the Group around the Hermès brand, is the second pillar of Hermès’s strategy. Each of the 311 stores across the world offers a personalised selection of objects, to exceed the specific expectations of its customers and offer a distinct purchasing experience in each and every store. Each store enables our customers to explore and discover the most beautiful products, and extends the House’s lustre worldwide. Customers are placed at the core of the multi-channel and integrated network, so as to best meet their expectations and offer them a unique experience. Across the world, Hermès stores are veritable “object homes”, offering customers a unique experience, complementary to its website hermes.com . This offer is backed by innovative services aimed at welcoming and serving them at all times in the best possible manner. The House also offers special occasions that strengthen the bonds among Hermès’ stakeholders, revolving around events in the world and dynamic and animated set designs. Each opening or reopening is an opportunity for the House to bring together customers that value its creativity and savoir-faire . Hermès’s unique way of communicating ensures that the House is recognised in France and worldwide. The development of new technologies has incited Hermès to boost the omni-channel dynamics of its organisation and to improve the customer experience in its stores and online. Maison Hermès, present in 45 countries following the opening of a store in Poland at the end of 2019, thus has a geographically balanced network of stores, with a steady pace of development and the constant search for prime locations.

The Hermès strategy revolves around our values: spirit of conquest, creativity, craftsmanship, quality, authenticity and independence. Creation hinges on two pillars: our craftsmanship activities and our exclusive distribution network. CREATION AT THE CORE OF HERMÈS’S STRATEGY The Hermès strategy is underpinned by the freedom of creation, championed by its designers and artistic directors around a given theme, which shines a common far-reaching light on all activities of the House. Every year, this theme inspires the collections presented to country managers and store managers at the podiums . “In the pursuit of dreams” was the theme for the year 2019. Celebrating the dream of Hermès means asserting the need to dare to see even further, to open the field of the imagination that stimulates creation. This creativity revolving around traditional know how is coupled with innovative processes to revisit timeless models and create exceptional pieces, without departing from Hermès’ trademark humour and imaginative flair. This is true of the House’s 16 métiers and of its other products and brands, in particular bootmaker John Lobb, cristallerie Saint-Louis and silversmith Puiforcat. This unbridled creativity is present in each métier , as reflected in the numerous scarf designs printed every year. It is expressed through over 50,000 references, developed around a unique identity and a style blending exceptional quality, innovation, surprise, elegance and simplicity. Hermès’s mission is to create unique and original objects to elegantly satisfy the needs and desires of its customers. Its goal is the pursuit of excellence, in each of its métiers and services, with craftsmanship at the heart of its model. Hermès leverages its craftsmanship activities, the first pillar of its strategy, with nearly 5,200 craftsmen in France. A House of over 180 years, backed by a rich history shaped by six generations of craftsmen, Hermès draws from its past through its savoir-faire , and is geared to the future through its values that address the concerns of our modern societies. Hermès moves with its times, but always respecting tradition, transmission and innovation. The quest for excellence and quality, the search for precision and elegance are the values that guide its action. It is over this long period of time that the House has forged its savoir-faire and its values, and that the Hermès strategic vision has developed. UNIQUENESS AND PERFORMANCE OF THE CRAFTSMANSHIP MODEL

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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