Hermès // CSR Extract 2023

RISK FACTORS AND MANAGEMENT RISK FACTORS

4.1.1.3 COMMERCIAL APPEAL ●

DESCRIPTION OF THE RISK s

POTENTIAL IMPACTS ON THE GROUP s

The loss of commercial appeal could lead to a gradual loss of interest from customers.

The commercial attractiveness and desirability of the products are based on the Group’s unique model. The latter is characterised by its radical style, ancestral savoir‑faire mainly “Made in France”, high quality products and services, its openness to local cultures and its unique communication. In a constantly changing world, any failure of the Group to take into account customer expectations, CSR challenges or quality issues could negatively impact the House’s appeal. The attractiveness of products could also be affected by the parallel market and networks of resellers undermining the customer experience.

IMPACT PROBABILITY

RISK MANAGEMENT s

The creative offering is the responsibility of the artistic department and its many talented employees, who ensure 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 customers and be enhanced by craftspeople. The freedom of creation, reinforced by the freedom of the stores to purchase, is exercised while preserving the harmony and coherence of the collections, expressed through an annual theme. Absolute product quality has always been a priority. Tests carried out on all products before they are sold ensures their compliance and durability. The Group has also implemented a support system for its craftspeople and suppliers with a view to developing their savoir‑faire . The Hermès Group has introduced a number of tools, both in‑store and online, to enrich the customer experience by raising the level of service to match the quality of its products. The stores are also regularly renovated, the omnichannel offer is being expanded and customer services, such as after‑sales service, are developing. Lastly, the Group continues to structure itself by allocating human and IT resources to fight against corruption in stores, while paying particular attention to the prevention of all forms of discrimination.

4

Strategy and operations

Industry

CSR

Regulatory compliance

Finance

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL EXTRACT FROM 2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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