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Creative Merchandising Concepts Deck: Hermes

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Creative Merchandising Concepts Deck: Hermes

Hermès is a well-known French luxury company foundedthat began in 1837 as a

seller of quality horse harnesses. Hermès introduced their luxury travel bag in 1900,

followed by a succession of high-quality stitched leather riding accouterments that quickly

gained appeal. Hermes' creative merchandising concepts deck acts as a marketing tool used

to present and pitch a new marketing concept to the company’s clients, contributors, and

industry partners.

Branding Elements

The pillars of "quality" and "refinement" are strongly embedded in Hermès branding

features. For these reasons, the brand has always avoided mass production, assembly lines, and

outsourcing (Martin Roll Company, 2022). According to Hermès, every single product

released under the brand's name should reflect the artisan's hard work (Martin Roll

Company, 2022). According to current CEO Axel Dumas, the Hermès brand's core strength

is its appreciation of craftsmanship.

Target Market

Hermes' target clients are mainly young adults with fashion desiresfashion-obsessed

young adults and teens. The customersir clients expect great quality, useful features, and

excellent after-sales support from Hermes products (Tran, 2014). Hermes purchasers are

associated with appear to have high incomes and are unconcerned about high pricing. They

are seeking limited edition products and differentiations in Hermes leather goods. Luxury

clients desire to own something that few others can afford or acquire. Hermes works in

several significant markets, including the United States (Tran, 2014). Hermes caters to

high-income clientele due to the high cost of its products.

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Retail Concept Description

Hermes pursues an omnichannel approach, producing a multi-channel retail system

through multi-channel distribution. Hermes has made significant investments in

developing its online sales infrastructure. Despite the drop in sales in stores as a result of

the epidemic, purchases from online shopping have continued to increase (Wang, 2021). In

addition, Hermès has entity stores in 45 countries, a total of 331 locations (Wang, 2021). Its

primary markets include Asia Pacific, Japan, Europe, and the United States, and has

contributed to its position as the world's largest luxury jewelry brand.

Positioning and Competitive Advantage

Burberry, Louis Vuitton, Pandora, Prada, Balenciaga, and Tiffany & Co. are

among Hermes' competitors and related brands (Craft, 2022). Hermes' competitive

advantages, on the other hand, have allowed it to stay ahead of the market's biggest

competitors. Hermès has a strong brand identity, awareness, and global presence, and one

of the company's main strengths (Shastri, 2022). Hermès has a strong presence and a

diverse product offering. The firm has also been effective in maintaining product

distinctiveness and high-quality items. It also participates in numerous sponsorships to

increase brand exposure globally.

Merchandising Assortment and Key Call Style Call Outs

Hermes has a diverse product selection, which allows them to have balanced sales

among the upper crust. Hermes' product portfolio includes garments and accessories,

watches, jewelry, perfumes, leather products, home décor, and equestrian items (Wang,

2021). Hermes' principal product is the handbag, and its products are made from very

valuable raw materials. Leather is an integral component of the majority of Hermes'

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products. Leather and real leather are both types of animal hair, but leather is the result of

many physical and chemical processes that use animal skin (Wang, 2021). As a result of the

complicated procedure, the total leather material is also more valuable.

Marketing Concepts

Hermes, as a luxury consumer durable brand, prioritizes integrated marketing.

Hermes' promotional approach in their marketing mix is as follows:

Waiting List Strategy: - Hermes strategists make effective use of the economic principle

that 'scarcity creates value' to build exclusive demand for their items among high-end

buyers by maintaining a year-long waitlist (MBA Skool Team, 2022).

Communication Media:- Hermès primarily advertises in print media, which may give

appealing colors, themes, and fantastic photographs. Vogue, for example, is a premium and

high fashion magazine used by the company for advertising.

Celebrity Endorsement:- Hermès use this method to raise worldwide brand recognition,

offer value, and strengthen its market position.

Outdoor Advertisement Fashion Show:- Tto promote new items and solicit client feedback

(MBA Skool Team, 2022).

Website:- Ssupports many languages for different nations to advertise new products and

services and answer client inquiries.

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References

Craft. (2022). Hermes competitors and similar companies. Retrieved 13 September 2022,

from https://craft.co/hermes/competitors

Martin Roll Company. (2022). Hermès – the strategy insights behind the iconic luxury brand.

Retrieved 13 September 2022, from

https://martinroll.com/resources/articles/strategy/hermes-the-strategy-behind-the-

global-luxury-success/

MBA Skool Team. (2022). Hermès marketing strategy & marketing mix (4Ps). Retrieved 13

September 2022, from https://www.mbaskool.com/marketing-mix/products/16803-

hermes.html

Shastri, A. (2022). Elaborative SWOT analysis of Hermes – a French luxury goods

manufacturer international company. IIDE. Retrieved 13 September 2022, from

https://iide.co/case-studies/swot-analysis-of-hermes/

Tran, P. (2014). Hermes International. Theses, Dissertations and Capstones. Paper 417.

Wang, Y. (2021). Analysis on the marketing strategy of Hermes. Advances in Economics,

Business and Management Research, 178.