Hermes US boss sees in-store retailing “here for a while”
Bob Chavez, US CEO of international luxury super-brand Hermes, recently spoke at the graduation ceremony of the Savannah College of Art and Design’s class of 2019. In conversation with the institution’s president, Paula Wallace, Chavez shone a light on where he sees the future of luxury in the next few years. Here’s a spoiler: he doesn’t see it disappearing into the online space, and he says experiences are the key to making offline retail work.
Hermes’ share price has appreciated by 34% so far this year
Source: Yahoo Finance
Discussing both the current trend towards online retail and how Hermes maintains its exclusivity, Chavez said: “I believe in-store retailing is here for a while. Hermès has over 300 boutiques worldwide, but we use a limited distribution strategy so that guests who take the trip to visit feel that they’re approaching something rare, something special.”
When it comes to driving offline retail, Chavez also had clear ideas about what works. Discussing a strategy that the company has recently experimented with, he said:
“Something we’ve introduced recently are pop-up showcases, which feature a specific facet of our brand. We’ve done a silk pop-up, a footwear pop-up, and they’ve done quite well. The pop-up exhibits travel from city to city and feature interactive modules. In one we did, guests could watch our artisans at their craft, pose for a sketch portrait, and step into special telephone booths where they listened to the history and secrets behind the Hermès brand. This new kind of luxury experience has been wildly popular, and always attracts new clientele.”
Dominion holds Hermes International in its Global Trends Luxury Fund.
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