Hermes to add 500 jobs expanding leather good segment in France
Luxury handbag maker Hermes International has revealed plans to open two new leather goods production sites in the next two years. Both of these sites will be in France, and they are a strong reflection of the rising demand for the company’s leather products, including the iconic $10,000 Birkin handbag. One facility we be situated near Bordeaux, the other in the Paris region, and both will employ around 250 people.
Hermes’ share price has risen by 14% so far this year
SOURCE: Yahoo Finance
The Parisian company, which has been struggling to meet demand over the course of this year, is heavily focused on reducing waiting times for its signature handbags. These high-end “must have” items often command prices in the range of many thousands of dollars, but demand for them has been steadily increasing in 2017. The reason that Hermes has struggled to meet this demand is simple: the luxury turn down in 2015 and 2016 hit it hard. Now, it is eager to turn back the clock and respond to a rebound in popularity for its leather goods. This is the second time this year that Hermes has looked to expand its leather goods production capacity this year.
This news is also more good news for France, as a sector in which it has significant cachet returns to growth. Taken alongside President Macron’s economic reforms and a reduction in corporate taxes, it bodes well for the country. At present, French business confidence is the highest it has been in a decade, and unemployment has dropped to around 9.5%.
Dominion holds Hermes in its Global Trends Luxury Fund.
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