In the world of haute couture, scarcity isn’t just a matter of limited availability, it’s a cornerstone of the entire industry’s prestige. The concept of scarcity is intertwined with exclusivity and desirability: It is also a reflection of the craftsmanship, time, and materials.
When one says scarcity, Hermès is one of the first brands that comes to mind.
Hermes, French luxury design house established in 1837, specializes in ready to wear; leather; lifestyle accessories; perfumery; furnishing. It’s one of the most valuable brands. Hermès came in 28th amongst the Best Global Brands 2020. With a brand valuation of USD 18.0 billion, it trails behind Louis Vuitton, ranked 17th with a valuation of USD 31.7 billion.
It began in 1937 when Thierry Hermès opened a workshop in rue Basse-du-Rempart. He specialized on created equestrian equipment. His eye for discreet finesse and enduring quality was recognized at the Exposition’s Universelles in Paris. The European elites started to show interest in this brand quiet rapidly. So that is the reasons Hermes still has horse related items such us keyring. Before becoming known for their really exclusive bag, they were know for being a high-end saddlery workshop.
In 1878 when Thierry Hermes passed away, his son, Charles Emile Hermes relocated the company’s shop to 24 rue du Faubourg Saint-Honoré, where it’s still headquartered today. He then later on also passed it to his two sons. The Hermès Frères era with newly appointed CEOs Adolphe and Émile-Maurice Hermès began.
The company gradually expanded its product line over several generations. Between 1880 and 1900, it began offering saddlery and started selling its goods in retail stores. In 1900, it introduced the “Haut à Courroies” bag, designed specifically for carrying saddles. In 1918, Hermès created the first leather golf jacket with a zipper for the Prince of Wales.
By the 1920s, the brand began incorporating accessories and clothing into its portfolio, and in 1922, it launched its first leather handbags. The travel bags introduced in 1925 were an international hit.
The 1930s saw the debut of two of Hermès’ most iconic products: the Sac à dépêches (renamed the “Kelly bag” in honor of Grace Kelly) in 1935 and the Hermès carrés (scarves) in 1937. In 1949, the brand expanded further with the launch of its first silk tie and its signature fragrance, ‘Eau d’Hermès.’
During this period, Hermès also entered the U.S. market by partnering with Neiman Marcus, a prestigious department store in New York.
The Birmingham bag was introduced in 1984, after a talk between Jane Birkin and the CEO Jean- Louis Dumas on a flight from Paris to London. She told to Dumas that she needed a medium sized bag.
Each Birkin bag, priced between USD 12,000 and USD 300,000, is a masterpiece crafted by a single artisan, requiring 18 to 25 hours of meticulous handwork, with even more time needed for delicate crocodile leather. In 2014, a rare Himalayan Nilo crocodile Birkin sold for USD 185,000, becoming the second most expensive handbag ever auctioned. Hermès is renowned for its rigorous quality control, even going so far as to incinerate any Birkins that do not meet its exacting standards, highlighting the brand’s dedication to perfection.
Over a period of time, the company has extended its reputation by entering into strategic collaborations with specific players and also its suppliers in the ultra-luxury segment.
Limited-Edition enhance brand value
Now Hermes is mostly know by they’re limited and very exclusive bag, like the Kelly and Birkin bag.
Hermes’ product strategy of using limited, handmade production makes the supply of products smaller than the demand. Those two bags are only made in limited qualities each year. This strategy of scarcity fuels consumers’ desire to purchase, fulfilling their need for social recognition and the allure of owning rare, exclusive items.
In the luxury market, possessing such scarce products gives consumers a sense of distinction and individuality. They seek these items not only for personal gratification but also to convey their status and refined taste in social settings.
Hermès’ sales strategy employs a mix of allocation systems and limited-edition releases, where customers are often required to purchase additional products in order to secure the coveted limited-edition items. This approach enhances exclusivity and encourages further engagement with the brand’s wider offerings.
As the fashion industry continues to innovate and adapt to changing trends and consumer behaviors, the concept of scarcity will likely remain a central pillar in defining luxury and high fashion.
It ensures that the value of these creations is not just in their aesthetic appeal but also in their uniqueness and the status they confer upon their owners. In this delicate balance of supply and demand, scarcity enhances the magic of haute couture, making it an enduring symbol of elegance and exclusivity in the ever-evolving world of fashion.
