How a commitment to craftsmanship and family stewardship created a $200 billion empire, withstanding feuds, feeding desire, and fending off the luxury industry's biggest takeover.
Several years ago at Basel, when Hermès had just bought its 25% share of Vaucher, two dial firms and a case manufacturer; I asked the CEO of Montres Hermes if they had a goal of becoming a fully fledged watch manufacturer.
He responded by telling me a story about their silk scarves - he told me that after WW2, the production of their scarves involved 20+ suppliers. There were people who grew the chrysalises, people who imported them to France, people who unspun the chrysalis, those who then spun the silk into a thread….and so on. But now they own every part of the chain, not because they really wanted to breed silk moths in South America. But because the one thing that a luxury client expects from the product is consistency, and you can only guarantee that consistency if you actually control every step of production.
Which is why I expect Hermès to be successful in the battle for the Sandoz watchmaking empire.
-There is a brief mention in the Acquired episode of annual handbag output - 120,000 units(!); this is attributed to a WSJ article. I found this shocking in comparison with the annual production figures of, e.g., Patek and AP
-Hermès is the cigar ashtray purveyor par excellence, in my humble opinion!
Thanks for adding this! Honestly, there was so much I was on the fence about adding, as it felt 'too long' - sounds sill saying this now, but I figured 10,000 words was already a piss take haha!
The Lobb deal, their men's ties and the lore behind those, maybe even the Vaucher acquisition for watches should have been added... I actually have another part to this coming soon - an insider explains how to go about buying Birkins. Should be fun.
Oh, and I don’t know how accessible it is, but I’ll definitely be trying to arrange access when I get a chance. I know one family member so maybe not impossible- will see 🥲
Truly appreciate your comment. Some of this long form stuff can be rather thankless, and the reward ends up being exclusively in the journey of creating it. Comments like this expand the joy 😄🥂
It might be interesting to contrast this family navigation of a prestigious brand into modern times against something different and arguably less successful in the watch world. AP for example.
Trading one type of success (preserving heritage) for another (making more money). Not sure it’s less successful to them - might hurt the brand in the long term, but that remains to be determined.
Understand, you're right. I was just thinking about the focus on quality and preserving that at all costs as mentioned many times here in your piece.
AP on the other hand seems to be doing the exact opposite. Maybe it's not wrong depending on your perspective, but I find the different strategies an interesting contrast. Maybe that's not enough or interesting for a full piece though.
Great read, Faheem! Thanks for the research and adding extra info :D enjoyed it!
I also loved the part about all the warm relationships and support inside of the company and generally story itself is very pure, except of Arnault of course, hahah
I think one of my favorites so far.. worth a biopic or a retrospective at the MET, or MoMA. I do wish you’d added some images of those early carriages and so on. I am totally inspired to go checkout the museum next time in Paris. I am also excited for the Parmigiani takeover! The current Parmigiani collection oozes the same level of class..!!
Thank you VS! Appreciate you taking the time. If you find any images lemme know. Happy to add them. Struggled to get ones which actually add colour to the story tho. 😂
Several years ago at Basel, when Hermès had just bought its 25% share of Vaucher, two dial firms and a case manufacturer; I asked the CEO of Montres Hermes if they had a goal of becoming a fully fledged watch manufacturer.
He responded by telling me a story about their silk scarves - he told me that after WW2, the production of their scarves involved 20+ suppliers. There were people who grew the chrysalises, people who imported them to France, people who unspun the chrysalis, those who then spun the silk into a thread….and so on. But now they own every part of the chain, not because they really wanted to breed silk moths in South America. But because the one thing that a luxury client expects from the product is consistency, and you can only guarantee that consistency if you actually control every step of production.
Which is why I expect Hermès to be successful in the battle for the Sandoz watchmaking empire.
Fantastic reflection; one I’d wholeheartedly agree with.
A few more interesting things:
-Hermès acquired John Lobb (Paris) in 1976
-There is a brief mention in the Acquired episode of annual handbag output - 120,000 units(!); this is attributed to a WSJ article. I found this shocking in comparison with the annual production figures of, e.g., Patek and AP
-Hermès is the cigar ashtray purveyor par excellence, in my humble opinion!
Thanks for adding this! Honestly, there was so much I was on the fence about adding, as it felt 'too long' - sounds sill saying this now, but I figured 10,000 words was already a piss take haha!
The Lobb deal, their men's ties and the lore behind those, maybe even the Vaucher acquisition for watches should have been added... I actually have another part to this coming soon - an insider explains how to go about buying Birkins. Should be fun.
I really think that both Birkin and Kelly have jumped the shark, at least where I live.
When I see one, I think “sex worker” or “counterfeit.”
Why’s that?
Easy answer - I live in Atlanta!
😂
Such an enjoyable read! Bravo F. 👏
Thanks EG! Always appreciated.
Epic narrative and your story telling does it justice. Really enjoyed it. I wonder how accessible the museum is, would love to visit someday.
Oh, and I don’t know how accessible it is, but I’ll definitely be trying to arrange access when I get a chance. I know one family member so maybe not impossible- will see 🥲
Are you open to bribes for a tag along invitation? 😂
😂 lemme first try.
Truly appreciate your comment. Some of this long form stuff can be rather thankless, and the reward ends up being exclusively in the journey of creating it. Comments like this expand the joy 😄🥂
It might be interesting to contrast this family navigation of a prestigious brand into modern times against something different and arguably less successful in the watch world. AP for example.
AP “less successful” ?? How!?
They seemed to have sullied their reputation in the name of expanded turnover where Hermes has not.
Trading one type of success (preserving heritage) for another (making more money). Not sure it’s less successful to them - might hurt the brand in the long term, but that remains to be determined.
Understand, you're right. I was just thinking about the focus on quality and preserving that at all costs as mentioned many times here in your piece.
AP on the other hand seems to be doing the exact opposite. Maybe it's not wrong depending on your perspective, but I find the different strategies an interesting contrast. Maybe that's not enough or interesting for a full piece though.
Great read, Faheem! Thanks for the research and adding extra info :D enjoyed it!
I also loved the part about all the warm relationships and support inside of the company and generally story itself is very pure, except of Arnault of course, hahah
Thanks so much for taking the time!
Indeed, very helpful to appreciate the inner workings of the “corporate culture” - makes me think more highly of the brand tbh.
I think one of my favorites so far.. worth a biopic or a retrospective at the MET, or MoMA. I do wish you’d added some images of those early carriages and so on. I am totally inspired to go checkout the museum next time in Paris. I am also excited for the Parmigiani takeover! The current Parmigiani collection oozes the same level of class..!!
Thank you VS! Appreciate you taking the time. If you find any images lemme know. Happy to add them. Struggled to get ones which actually add colour to the story tho. 😂
Fantastic post, well written and engaging.
Appreciate you taking the time! Have a great weekend.
Bravo maestro 🤌🤌
Merci Mon Ami
brilliant post, thanks as always!
Bruh. Tell me! 😄
Another fantastic post. 👏🏽
Thanks for the proofing too 🙌