A brand in the development of not only have many praiseworthy advantages, but also inevitably there are shortcomings and deficiencies. Just look at Hermes in the recent period of development, it is not difficult to find obstacles to its development disadvantage: First, the recent Hermes internal fake cargo damage to its larger, but also a serious blow to consumer confidence; second, Hermes and LVMH Group and other big luxury group compared to its development is slow into the, whether it is the speed of the shop or shop distribution. Third, Hermes is facing the problem of innovation barriers, all along, the leather or that few classic models, can not keep up with the current trend of luxury fashion. Finally, the trump card products, leather products sales in the reduction, but the scarves, accessories have increased, but also by the new consumer welcome.
In the near future, Hermes and other luxury goods “decline” part is due to the narrowing of the Chinese market. China’s “anti-corruption” action makes a large number of luxury brands have to slow down the expansion in the Chinese market, so that luxury goods industry sales growth is growing slowly.
Although the current market situation changes complex, Hermes own strengths and weaknesses, but as long as the current situation, Hermes will be able to seize the opportunity according to its characteristics, create greater glories. China’s position in the global luxury goods market has played a decisive role in the major luxury brands have increased capital increase in the Chinese market, in the market snatch, the luxury brand to occupy the Chinese market is the traditional way through the expansion of the number of stores, and Hermes in 2008 Tailored for the Chinese emerging market brand “up and down”. From the Chinese designer Ms. Jiang Qionger and the French Hermes Group co-founded to work together to create a heritage of Chinese culture and the revival of traditional handicrafts of the dream of its works, including furniture, household goods, clothing, jewelry, and tea-related items to “Home” as the origin, play Deductive “gorgeous and plain” way of life, is committed to the transmission of Chinese superb handicrafts, through innovation, to return to contemporary life. Hermes specifically for China to set up high-end brand which in the history of China’s luxury market development can be described as the first move. At present, 90% of China’s luxury consumption comes from the consumption of foreign luxury brands. China’s domestic luxury brand or a vacancy, the World Luxury Association, China CEO Ouyang Kun said: “Now the Chinese consumers on the choice of luxury brands are still blindly” and the Chinese mainland can not create an international luxury goods Brand, Hermes is undoubtedly preconceived to begin to cultivate the brand, ahead of the occupation of the market. “Although the” up and down “the brand” acclimatized “and continuous loss of 4 years, but Hermes this move is undoubtedly in the expansion of the scale of sales for people to provide A new idea.