Earlier in the year, Hermes announced that would be hiking prices of their exclusive range of products throughout the world. With that said and done, the company did record an extensive growth in revenue and profits in the first half of 2012 because of emerging markets in Singapore, China, Hong Kong, and the Middle East.
The only approach Hermes can take to maintain that haughtiness of a luxurious brand in the market is by opening fewer select stores across markets that really count.
The French “absolute luxury” brand announced that it targets to open 350 – 360 stores in the next 5 years in the Middle East, Latin America, and China. Europe got the axe since the newer markets have shown up to 25% growth in sales in the first half of 2012.
Consumers are still buying the $10,000 luxury handbags in spite of the stagnation in the worldwide economy and the company has now increased its target of annual growth from 10% to 12%. Living a luxurious lifestyle has always been about presenting a bold statement and with this announcement; Hermes hopes to convey the exact same message.