HERMÈS - 2019 Universal Registration Document

OVERVIEW OF THE GROUP RISK FACTORS

COMMERCIAL APPEAL ●

1.11.1.2

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DESCRIPTION OF THE RISK s

RISK MANAGEMENT s

The commercial appeal and the desirability of products depend on the Group’s uniqueness, expressed through its radical style, authenticity and origin of its ancestral savoir-faire , primarily “Made in France”, the quality of its customer products and services, its adaptation to local cultures and its unique communication. In a constantly changing world, the Group’s failure to take account of customers’ expectations, issues with the quality of products and CSR concerns could impair the House’s appeal. POTENTIAL IMPACTS ON THE GROUP s The loss of commercial appeal could lead to a gradual loss of interest from customers.

The creative offering is the responsibility of the Group artistic department and its many designers who see to the creative synergies of the collections while preserving the House’s identity and style. Their mission is to create, innovate, put forward new concepts and collections whose forms, materials and colours will astound our customers and be enhanced by our craftsmen. Creative freedom of production, is asserted while respecting the harmony and consistency of the collections, evinced by an annual theme. It is counterbalanced by the stores’ free choice of purchases. Absolute product quality has always been a priority. This high standard is met through the performance of quality tests on all products before they are put on the market in order to guarantee their compliance and durability. The Group has also implemented a support system for its craftsmen and suppliers with a view to developing their savoir-faire , in line with the expected quality level. In order to continuously improve the customer experience, the Hermès Group has made a number of tools available, in-store and online, with a view to offering a service level in line with the quality of products offered and customers’ expectations. For this purpose, stores are regularly refurbished, the omni-channel offering is gradually developing and the after-sales service takes care of requests for repairs of Hermès products.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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