HERMES


 


   Photo by Peter Holst

太太's little Birkin Bag is the ultimate accoutrement

So glad we started collecting Hermès bags decades ago, they have turned out to be good investments as well as heirlooms to pass on to the next generation 

In Asia it was reported that one bank's private banking services were able to secure a Birkin.   A cardholder called the concierge for a list of Hermes Birkin and Kelly bags available, and a 35cm chocolate Birkin and 32cm Blue Jean Kelly were purchased and delivered within two weeks, said Ms Goh.

Typically, the wait list is two years for these coveted bags which cost about £9,000 (S$17,666) each.   --  2011 July 16


Birkin
£5,000                                                          Kelly £9,300

Here's how to spot a real Birkin:

Each bag bears the number of the workshop, year of make and a personal number on the inside of the right-hand buckle strap in front. If the bag is damaged, the bag is sent back to the same craftsman for repair.

  • French novelist Colette once said: 'At Hermes, the inside should be as impeccable as the outside, under must be like over.' This means a real one has soft leather lining, not some cheap faux leather.
  • The lock and key, as well as the studs on the base, must be made of the same metal. Also, a look-alike or counterfeit Birkin will use stainless-steel alloy or gold plated metal, whereas the real Birkin uses only palladium, silver or gold.
  • If the clasp is in gold, the embossed Hermes logo should also be in gold. Correspondingly, if it is in silver, the logo should be in silvery white.
  • The stamped logo must be straight and neat.
  • The spacing of inner and outer stitchings should be even and consistent.     -  Singapore Straits Times

The Birkin Bag
From its early beginnings in Paris in 1837, Hermès has been a leader in the world of luxurious leathers and quality craftmanship. Almost 170 years later, and with an untarnished reputation, the Hermès Birkin bag has become one of the most coveted fashion accessories ever, but with a price tag exceeding that of a small car, we check out what all the fuss is about...

Established in 1837 as a maker of fine saddles and harnesses, Hermès immediately gained a reputation for luxurious leathers and quality craftmanship. Almost 170 years later, Hermès is stronger than ever and opening in Dublin. After appearances in cult television shows such as 'Sex and the City' and 'Will & Grace', the Hermès Birkin bag has become the must have fashion accessory of the century! But getting your hands on one of these bags isn't the easiest of tasks, first you join a two year long waiting list, and then fork out a small fortune if you are lucky enough to ever make it to the top of the list!

Jumping the queue for one of Hermès bags is impossible, that is unless you're PR whizz Samantha Jones, Kim Cattrall's character, Samantha, in Sex and the City. In one episode Samantha so desperately and impatiently craves a Hermès Birkin, that she tells the Hermès publicity director that she needs the bag for a client, Lucy Liu. The waiting list is quickly forgotten and a Birkin arrives momentarily, sadly for Pamela, the same didn't happen when she tried to tell them who she was!

It is perhaps the appearance in Sex & the City that thrust the bag into the consciousness of millions of fashion-loving viewers, however, you can expect to hand over three to four thousand euro at the very least for a genuine Hermès Birkin. A price tag thought by many to be ridiculous, but not for some. With Hermès opening in Brown Thomas... we found out what Irish fashion-lovers think of the phenomenon that is the Hermès Birkin.

At the recent launch of the first Hermès store in Dublin, we caught up with Christian Blanckaert, Executive Vice President in charge of international affairs for Hermès international! There's a mouthful for you!

Pamela: What makes Hermès bags so special?

Christian: The amount of work that goes into one of these bags is huge. We use the finest skins in the world, and each and every bag is handmade.

Pamela: What about the huge waiting list?

Christian: The skins we use are quite rare, so unfortunately you could find yourself waiting a while. Also customers can have an input into the design of their bag, and sometimes they have crazy ides, which can take some time, but we love crazy ideas!

We also caught up with Fashion Designer Louise Kennedy, who is the proud owner of a 1950s Hermès Kelly, which has been passed down through generations to her.

Louise: The bag was designed in the 1920s in Cannes in France. "I covet it, I adore it. For me, the joy of the bag is, it was designed so long ago, but I'm as happy to carry it now as I'm sure when I pass it on to the next generation, they will be too. It's a classic piece, it's timeless.

We do think the bags are fantastic, but what about those prices? We slipped out to the streets to find out what the average punter really thinks of the price tag, here's what some of you had to say.

"A lot of people would spend that on drink in a year, so if you're happy to spend that on a handbag instead, then do it"

"Not €7,000 on a handbag, I don't think so"

"I could think of better things to spend the money on, than the bag"

"I'd just get a boyfriend to but it, it's going on my Christmas wish list"

"It would feed an awful lot of orphans. then again you can't eat handbags" - RTE Television

THE HERMES FACTOR
Time to cut back: Try the $31,000 bag instead

Christian Blanckaert sweeps under the cherry wood arch of the spanking new Hermès store, snug in the heart of Toronto's aspiring Mink Mile. Two matte-finished crocodile Birkin bags sit sparely and artfully in a display case. One is priced at $41,000 and the other at $31,000. Why? Because the former is porosus and the latter is niloticus, and if you want to learn about luxury branding you had better know your skins.

For or Mr. Blanckaert, executive vice-president, international affairs, at Hermès SA, the world has never looked rosier. Recessionary fears? Luxury meltdown? Not on Mr. Blanckaert's radar as he watches a clerk wearing the thinnest of white gloves remove a Kelly bag, brightly accessorized with 17 carats worth of diamonds, from its locked display.

This particular Kelly, handcrafted from the bellies of two crocs and dyed in a red the retailer refers to as "braise," retails for $165,000.

Little wonder that such incomprehensibly lofty price tags make way for a sky's-the-limit conversation about aggressive global expansion under the watch of the Paris-based Mr. Blanckaert, including just-set plans to open Calgary's first Hermès store next year.

"Bigger growth in North America" has become Mr. Blanckaert's rallying cry. "A few years ago, no one would have predicted it," he says. "It's a paradox."

This may be explained, at least in part, by the unconventional approach the luxury goods merchant has taken in protecting its brand identity. "The artistic direction of a company like Hermès must be, must be, totally independent from the hierarchy of management," he says. "If the products are not creative, innovative, then you can have the best management in the world and it's totally useless."

Staying innovative at Hermès means rejecting such old school notions as market analysis. "When a product like a perfume is launched, all the market analysis says, 'But we are full, there is no potential, it's saturated,' " he says. "But that's wrong. There is no saturation as long as you are innovative."

Last year, the company introduced Kelly Calèche, which it markets as a "floral-leather" fragrance for women. Perfume sales are up (a 14-per-cent increase in the first quarter ended March 31). Leather sales are up 11 per cent. Silks and textiles too.

Total sales rose 13.4 per cent on the quarter to €415-million ($655.7-million).

Quality is, of course, key. "We buy the best skins, we buy the best cashmere, we buy the best silk," says Mr. Blanckaert, who takes a moment to caress an orylag throw, made from the pelts of an especially created breed of French rabbit. (Reports on the rabbits say they prefer being raised in quiet, music-infused environments. The throw is priced at $39,000 and is as soft as chinchilla.)

And then there's customer service, which, in Mr. Blanckaert's assessment, has completely disintegrated this side of the Atlantic. "I went to Gap in New York. I wanted a trouser," he recounts. "And I said, 'Can I have a trouser?' The boy said, 'We don't have this trouser any more.' I said, 'Okay, but maybe you have something similar?' He said, 'Look yourself.' I said, 'Look myself? But I am a foreigner. I don't know.' He said to me, 'I don't care.' I said, 'You don't care? No, I don't care.' "

Hermès, Mr. Blanckaert makes clear, would never treat a customer so shabbily. But who is the Hermès' customer? A flick of impatience lights across his face.

"It's very arrogant to say we have classified our customer. ... It's impossible to say. Absolutely impossible." Babies are welcome, he says. Dogs too. Bring the whole family. Take your time.

"The big difference between Hermès and others is that we're not in a hurry," he says. "We're not in Canada for the next five years. We're in Canada for the next 200 years."

***

By the numbers 
£1.6-billion  
Sales in 2007 ($2.5-billion)

£288-million
Profit in 2007
7,455
Number of employees
267
Number of retail outlets in 2007, including 156 branches and 111 concessionaires

 - 2008 June 18   GLOBE & MAIL


Plume
£12,500 

There's the massive price tag, there's the waiting list, and there's the celebrity devotees. The Birkin bag carries with it all the trappings of wealth and status

SINGAPORE       Jewellery designer Jaime Choo loves bags.

But it is only the super expensive Birkin bag from French fashion house Hermes that tickles her fancy.

We're talking about $10,000 bags. And that's the cheapest version.

The exorbitant price tag and an average two-year waiting list worldwide haven't stopped her from snapping up five Birkins from stores here and in Los Angeles.

She has spent about $50,000 on them since 2002.

A 35cm-wide Hermes (pronounced air-mess) Birkin can cost anything from $10,000 if it is made in calf leather to $30,000 in crocodile leather.

'It's the Rolls-Royce of bags,' says Ms Choo, 29. 'It is roomy and I like its quality, workmanship and rarity.'

Financial adviser Ponz Foo, 28, is also not fazed by the price tag.

Impressed by the care and attention to detail which the 157-year-old family-owned French brand pays to its products, she has since spent $20,000 on two Birkins.

The women are not alone in their obsession with the Hermes Birkin.

One Singaporean woman, who refuses to be named or interviewed, owns more than 80 Birkins.

Sources tell LifeStyle that her Birkins are kept in their individual dust bags which sit inside signature Hermes orange boxes. Pasted on each box is a Polaroid photograph of the bag inside, for easy identification.

Her babies are stored in a specially designed, air-conditioned 20-sq m room - about a quarter of the size of a four-room HDB flat.

It is estimated that she paid a mind-blowing $1 million for them.

Baby beginnings

The Birkin is not a new creation.

It has its roots in 1984, when Hermes designed a bag for British actress-singer Jane Birkin, who is most famous for the song Je T'aime, a breathy duet with French composer Serge Gainsbourg.

In fact, it was meant as a bag to carry the accoutrements of the actress' baby daughter.

The design wasn't even unique. The Birkin is based on the Haut a Courroie, an Hermes carrier for men which has been around since the 1900s.

Perhaps because of its price and quality, the Birkin became a symbol of stealth wealth and status, and has always been popular with high society women.

Two years ago, an episode of HBO's Sex And The City catapulted the Birkin and its lore into mainstream consciousness.

The character Samantha Jones, desperate to get a Birkin, jumped queue by dropping the name of her client, actress Lucy Liu. She got the bag, but was caught in her lie by Liu, who made a cameo on the show.

Today, the bag counts as fans celebrities like Kate Moss, Madonna and Queen Noor of Jordan.

So popular is it that it has spawned more copies than the American Idol franchise. (See other story.)

Says Ms Foo: 'Frankly, I've come across more copies than the real thing.'

To the untrained eye, first impressions of the Birkin may disappoint.

The leather bag has rounded double handles, a fold-over top, a belt-like closure with a lock and key, and metal studs at the base. It looks quite ordinary.

But each Birkin is handcrafted. It is said that, on average, each bag requires more than 2,600 hand-stitches and about 18 hours to assemble.

That is also how long it takes to manufacture a BMW, wrote the British Financial Times last year.

The bag is available in different sizes (from 30 to 40cm in width), leathers (calf and crocodile) and metal clasps (silver, gold or palladium).

In Tokyo, Hermes' best-performing Asian market, about 40,000 orders for a Birkin were made in 2002, with an average five-year wait. This means that if you had ordered one that year, you'd only get it in 2007.

Hermes Singapore declined to comment for this story, but it is believed that Singaporeans who want one now will have to wait till 2006 for it.

Clients comprise mainly professional women from their mid-20s onwards.

Timeless appeal

Many fans justify the hefty price tag by pointing out that they can choose the size, leather and metal they want.

But the irony is that customers don't always get what they order.

This is because the bags are handmade by only 200 leather workers in Hermes' atelier in Pantin, just outside Paris.

The quantity and quality of bags produced are also very much dependent on the availability of the leathers.

Birkin customer Linda Tan, 34, says most women end up taking whatever bag is assigned to them rather than subjecting themselves to another long wait. The public relations manager has four Birkins.

Says Ms Choo: 'It's precisely because we have to queue for one and pay $10,000 for it which makes it a must-have. If it's really easy to get, we won't be as keen.'

Apart from that, Ms Foo says the Birkin's appeal is simply in its timeless design.

'After a couple of seasons, other seasonal must-have fashion bags almost inevitably end up on the sale rack. But not the Birkin,' she says.

Mr Henry Poh, 30, who owns second-hand designer store Cavallino at Tanglin Shopping Centre, can attest to that.

He says that only Birkin and Kelly bags, which is an Hermes bag named after the late actress Grace Kelly, can command re-sale values not far off from their original price tags.

No other brand - not even Louis Vuitton - boasts such cachet.

Still, some women, like real estate agent Chan Su-Lin, 38, refuse to buy into the hype.

'The thrill comes from having something others don't. But after paying that kind of money, what is there left for the inside?' she says.

Luckily for Hermes, there will always be those for whom a hefty price tag is precisely the attraction.

Adds Ms Foo: 'It's so well-made I can probably bequeath my bags to my daughter. And amortised over two generations, $10,000 is quite a snip.'

Birkin stocks

Because of the Birkin's classic design, knock-offs can be easily found, even in local leather shops like Nan Kai and Kwan Pen.

Brands like Fion at Takashimaya and Pierattini at Shaw Centre also boast Birkin lookalikes.

Priced between $179 and $4,000, depending on the leather used, these bags sell very well, say their respective spokesmen.

The latest and most interesting take is the Jelly Birkin, a transparent rubber version from Italy which is available at Tribeca boutique at Forum The Shopping Mall.

Since last December, the shop has sold more than 60 pieces. Available in three sizes, they are priced between $350 and $400.

Copies or knock-offs are designed to look as much like the original as possible.

However, they are only considered counterfeit and liable for legal action if they bear the Hermes name and logo.   -  Singapore Straits Times

Its elegant style, commitment to workmanship and daring keeps the fashion house  Hermes ahead of the pack.

Youth rides tall in the Hermes saddle

On a chilly January evening in Paris, Hermes International chairman Jean-Louis Dumas donned a tuxedo, a squirrel mask and a tail to greet his costumed guests.

General director Gilles Duval sported rose-coloured hair and whiskers with his furry Pink Panther suit, while managing director Patrick Thomas wore a curly black wig with his fuchsia bloomers.

"Do you like my tail?" Mr Dumas asked his guests, who included designer Philippe Starck, dressed as a mafia boss.

Hermes - best known for its silk scarves and handmade handbags that have been carried by the likes of Princess Grace of Monaco - is trying to update its image and boost its sales, which have stagnated in the past two years.

Mr Dumas hired French designer Jean-Paul Gaultier, who is known for putting men in skirts and designing a corset with a conical bra for singer Madonna.

"[Gaultier] is one of the most radical of French designers," says Rita Clifton, chairman of the UK unit of Interbrand, an international brand consulting company.

"He will certainly give a dose of amphetamines to the brand."

The 165-year-old Hermes reported revenue of €1.23 billion (HK$11.87 billion) last year, down 1.9 per cent from 2002. A year earlier, sales grew 1.2 per cent. The company blamed exchange rates for part of the sales decline.

Luxury goods analysts also point to Hermes's offerings of woollen trousers and cashmere sweaters that were so similar from year to year that customers weren't rushing into stores to grab the latest products.

"Even they recognised the fact that they needed to have higher visibility for their ready-to-wear business, which is the second-most important product category," says Nathalie Longuet-Saleur, a luxury goods analyst at Societe Generale in Paris. Leather goods are the first, with 31 per cent of sales.

Mr Dumas, 65, a member of the fifth generation of the founding family, had the chance to change the company's approach in October last year, when Hermes's contract with Belgian designer Martin Margiela expired after six years.

On March 6, Gaultier rolled out his first collection for Hermes to 800 buyers and journalists. The show, held at the stables of the military riding school in Paris, was a departure from Hermes's past presentations, held at its Rue du Faubourg Saint Honore boutique, and was attended by French actress Charlotte Gainsbourg, Defence Minister Michele Alliot-Marie and designer Azzedine Alaia.

Some of the audience sat on gilded chairs, and the rest perched on bales of hay covered with wooden planks. Gaultier kept the connection to Hermes's history as a saddle maker in the clothes as well, presenting models wearing jodhpurs and leather halter dresses and corsets and sporting long ponytails.

In the past, Hermes shunned splashy fashion shows and presented its ready-to-wear collections to about 300 people.

"Hermes is one of the most-conservative companies in the luxury goods market," says Scilla Huang Sun, who manages a US$60 million luxury stock fund at Clariden Bank in Zurich, of which more than 5 per cent is invested in Hermes stock - the largest single position.

The risk in Hermes's new strategy is that it may alienate the traditional customers who visit Hermes for US$1,775 cashmere blankets and $295 silk scarves, Ms Huang Sun says. "Hermes is about heritage, exclusivity, quality and pricing. They can push sales if they want, but in the long run, it's better not to overdo it."

While sales have slowed, Hermes has yielded steady profits. In the 10 years to 2002, profit grew almost sevenfold to €216 million. Ms Longuet-Saleur predicts Hermes will report a 3 per cent increase in profit for last year, to about €224 million.

Claire Kent, luxury goods analyst at Morgan Stanley, predicts Hermes will boost net income at least 7 per cent this year to €232.9 million and 9.5 per cent to €255.1 million next year.

In line with its peers in the Bloomberg European Fashion Index, Hermes stock rose 2.8 per cent to €156.20 this year - and 26.6 per cent since Gaultier's appointment was announced in May last year. Seven of 24 analysts who follow the stock rate it a "buy", according to Bloomberg data, while 12 rate it "hold" and five rate it "sell".

At stake is one of the world's most valuable brands. Interbrand ranks Hermes No 73 among the top 100 brands in the world, assigning it a value of US$3.42 billion based on a formula of projected profit. That is behind rivals Louis Vuitton, which is No 45 with a brand value of $6.71 billion, and Chanel, which is No 61 and valued at $4.32 billion. Hermes ranks ahead of Prada, which is 87th with a value of $2.54 billion.

Hermes, which was founded in 1837 by harness maker Thierry Hermes, is one of the few remaining luxury brand companies that have managed to survive without becoming part of a conglomerate.

The company is 80 per cent owned by the Hermes family, who have given a mandate to Mr Dumas to manage the business on their behalf. Shares comprising the remaining 20 per cent of the company are quoted on the Paris stock exchange.

"Being a public company forces us to be competitive and to deliver results," Mr Thomas says. "Being a family company gives us the long-term vision and consistency that make us strong."

Mr Dumas initially approached Gaultier last year seeking a recommendation on a replacement for Margiela, a former assistant of Gaultier's, Mr Thomas says. After thinking about it for a few weeks, Gaultier met Mr Dumas in a Paris pub. "He had a smile on his lips," Mr Thomas says. "He said he wanted to do it himself."

Other historic French brands have turned to new designers to revamp their images. German designer Karl Lagerfeld has helped Chanel walk the tightrope between tradition and trendiness by mixing its trademark tweed suits with transparent blouses, hot pants and low-slung trousers. Chanel, which is privately held by the Wertheimer family, hired Lagerfeld in 1983.

British designer John Galliano has attracted younger customers to Christian Dior, which has been owned by LVMH Moet Hennessy Louis Vuitton, since he started designing its clothes in 1996.

"He gave Dior a new DNA," Sidney Toledano, chief executive of Dior Couture, the unit of Christian Dior that operates the Dior brand, said last year.

In 2002, 43 per cent of Dior's US sales were to customers younger than 30, Mr Toledano said. "You have to talk to young people," he said. "If you don't have the young customer, you will lose the more mature customer."

American designer Marc Jacobs, 40, helped power Louis Vuitton through a luxury industry slump last year by collaborating with Japanese pop artist Takashi Murakami to create handbags with pink, green and blue LV logos. Some US$345 million of the bags were sold, accounting for about 10 per cent of Louis Vuitton's total revenue last year, according to an estimate by industry newspaper Women's Wear Daily.

Parent LVMH cited increased demand for leather goods for a 34 per cent increase in net income in the second half of last year to £458 million.

Ms Longuet-Saleur predicts Hermes may boost sales more than 10 per cent this year thanks to Gaultier-designed men's and women's ready-to-wear collections, store openings, increased advertising, price increases and an improvement in the economic climate.

"Jean-Paul Gaultier will step up traffic in stores because people will be curious," she says. "They may then buy a bag or a belt, but the key is to bring traffic to the stores."

Hermes operates 252 stores worldwide and invests roughly €50 million annually in upgrading them. This year, it will open its first stores in Palermo, Italy, and Seoul.

Hermes is also increasing its production capacity for leather goods, including its Birkin bags, which generate waiting lists of more than a year from New York to Tokyo. The bags are handmade and are named for British entertainer Jane Birkin, who, according to company legend, developed the model herself with Hermes craftsmen. They start at about €3,500 and can cost more than €100,000 for a model in crocodile skin with a diamond-studded clasp.

Hermes has tripled its number of leather-goods craftsmen in the past 10 years to 1,500 and has boosted production by 25 per cent in the past two years alone, Mr Thomas says.

Hermes also continues to make saddles, first introduced in 1867. Some 10 craftsmen still hammer, cut and stitch in an attic workshop over the main Paris shop, producing about 600 saddles a year, all on special order. Each one takes at least 20 hours to make. Prices start at about £3,000. 

Analysts welcome the company's more ambitious approach since Gaultier's arrival. "They need to be more aggressive to step up growth," Ms Longuet-Saleur says. "To grow on the top line, you need to step up the visibility of the brand."

Hermes is increasing advertising, though Mr Thomas declines to say by how much. Ms Kent estimates the company spent about 4.5 per cent of its sales on advertising last year and will now aise that to 5.5 per cent.

That figure is in line with what a label such as Italy's Tod's, which sells classic handbags and leather accessories, would spend, according to Carlo Alberto Carnevale-Maffe, professor of business strategy at Bocconi University in Milan. It is about half the amount a fashion brand such as Prada would invest in advertising and promotional activities, he says.

The company is also seeking to boost sales of men's watches, says Guillaume de Seynes, a Hermes family member who oversees La Montre Hermes, the company's watch-making unit, in Biel, Switzerland. He says women's models currently account for about 85 per cent of Hermes's watch sales.

Mr Thomas says he is already seeing signs that the US$58 billion luxury market is rebounding after the difficult three years following the US stock market decline and the terrorist attacks of September 11, 2001, which put a damper on travel and spending. "Business is coming back," he says. "We are hopeful for a better year this year."

Mr Dumas concurs. At the end of the March 6 show, the last model strolled off the runway with a blonde horse's tail swishing at the back of her grey wool skirt.

"I will never see a horse's tail in the same way again," Mr Dumas said after the show. At the very least, Mr Gaultier is bringing Hermes the attention investors say it needs. - by Sara Gay Forden of Bloomberg     20 Mar 2004 

PARIS ­ - Hermes International on Tuesday reported better-than-expected second quarter sales, bolstered by robust activity in America and Asia excluding Japan.

The French luxury firm said sales in the three months through June advanced12.1 percent to 398.1 million euros, or $622.4 million at average exchange, despite continued tough business in the important Japanese market.

The results beat most analysts' expectations and signaled health among Europe's key luxury players despite the tough economic environment.
- 2008 July 22    WOMENS WEAR DAILY

 


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