Hermès’ Chief of the Americas Bob Chavez confirms what we have written about the brand’s latest sales strategy. Find the customer where they are. And in this instance, it explains why Hermès is developing boutiques in smaller cities and more suburban locales.
In an interview with Vogue Business, Chavez says “We’ve realised customers want that localised convenience,” and Hermès is considering boutiques in what some currently may term “Hermès deserts” like Portland, OR and Nashville, TN. Chavez further explained that they are opening stores in “pockets of wealth” outside of big shopping destinations.
Furthermore, Chavez admits that he has been trying to push the brand beyond the core of Birkins, Kellys, and scarves. During the pandemic, Hermès saw that local and regional customers unable to travel shifted purchases to items other than the core. Behold the pandemic decorating à la “chez Hermès”.
According to Vogue Business, this interview occurred just before Hermès announced its 2022 Q1 results. Perhaps then it is no surprise the financials demonstrate lessened growth in the Leather Goods and Saddlery line, aka those Birkins and Kellys, and greater growth in ready-to-wear, watches and other items.
Any thoughts on bringing the Birkin to your local community? Or would you rather have Hermès remain destination shopping?
Updated: April 20th, 2022