Hermes Maintains A Rare Characteristic That Makes Other High-End Brands Fall To The Ground.

The slump in the luxury industry has not made the French traditional handicraft brand Hermes (Hermes) frown.

On the contrary, Hermes has not been beset by it. The French brand has its own unique knack.

The trick is "rare": a feature that makes other high-end brands fall to the ground.

In the first half of this year, the sales volume of Hermes was 2 billion 300 million euros, 3.5 times that of ten years ago, and the current growth rate is also above the annual growth target of the brand (8%).

Rival LVMH and Gucci parent company Kering grew by 6% and 3.5% in the first half of this year.

Unlike the two biggest luxury goods makers, Hermes has taken off the load of non luxury goods or multiple brands and has been traveling light.

At the same time, the brand has been tightening supply, resulting in the market demand is not fully satisfied.

Some consumers want to buy the most prestigious Birkin bag in Hermes bags (worth 10 thousand pounds), which may take several years.

The front saddle manufacturer is growing rapidly.

The question is whether this trick is a good reason for the high share price of Hermes.

It is reported that Hermes's share price is as expensive as its bag, which is 50% higher than that of many peers.

There are two reasons for us to think that Hermes is worth holding high share prices.

In August 28th, Hermes announced the first half of the brand.

Nearly 33%, five 28% years ago.

The performance of LVMH flagship brand Louis Vuitton is also good, but its profit growth in fashion and leather sectors has declined from 33.7% in 2015 to 25.1% in the first half of this year.

Gucci's operating profit grew by 27% in the first half of the year.

In addition, Hermes has performed better in the "difficult" areas such as Asia.

Like other peers, Hermes has risks in Asia, but seems to have benefited from avoiding excessive expansion.

Specific data show that

Asia, excluding Japan, is still growing at an annual growth rate of nearly 7%.

In Ulan Bator, Hermes stores are nowhere to be found.

But in the world

In the context of poor performance, Hermes's share price has fallen by 10% since August 10th.

But Hermes has done very well.

This high-end brand insists that "less is more", which makes Hermes a "rare asset" in the global luxury sector.