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On April 25, Hermès Group released its financial report for the first quarter of 2024. Sales revenue increased by 12.6% year-on-year to 3.805 billion euros (approximately 29.581 billion yuan), and grew by 17% at constant exchange rates. In comparison, Hermès Group achieved a year-on-year growth of 22.3% in the first quarter of 2023 and 18% in the fourth quarter.
By category, the leather goods and saddlery division saw a year-on-year sales revenue increase of 15.5% to 1.628 billion euros in the first quarter, accounting for the largest share of total sales revenue. The ready-to-wear and accessories division’s sales revenue grew by 11.7% to 1.061 billion euros, while the silk fabrics and fragrances and beauty divisions saw increases of 3.4% and 3% respectively, reaching 242 million euros and 130 million euros. The watch division grew by only 0.1% to 166 million euros.
By region, sales in the European market increased by 13.9% year-on-year to 757 million euros, with the French market growing by 14.3% to 312 million euros. Despite setbacks faced by many luxury brands in the Americas market, Hermès recorded a growth of 10.3%. Meanwhile, sales in the Asia-Pacific market rose by 9.2% year-on-year to 2.277 billion euros.replica kelly bag
Specifically, sales in the Japanese market increased by 10.8% year-on-year to 357 million euros, while the rest of the Asia-Pacific market grew by 8.9% to 1.92 billion euros. It is worth mentioning that in the same period in 2023, revenues in the rest of Asia excluding Japan grew by 23%, primarily due to strong demand in the Chinese market, while the Japanese market also saw a growth of 26%.
In the first quarter of 2024, LVMH Group’s sales revenue decreased by 2% year-on-year to 20.7 billion euros, with the fashion and leather goods division, which includes Louis Vuitton and Dior, falling by 2%, and the jewelry and watch division, which includes Bulgari and Tiffany, dropping by 5%. Kering Group’s sales revenue fell by 11% year-on-year to 4.504 billion euros, with Gucci’s revenue declining by 21%.
The cooling of the luxury market is an established fact, and even Hermès cannot avoid a narrowing growth rate. In the luxury industry today, luxury brands no longer pursue explosive growth but rather compete on who has the most stable growth trend, the most loyal customers, and who can find opportunities from more niche angles.
Currently, there are roughly three types of brands that can maintain growth in the luxury industry.
One type is represented by brands like Hermès that cater to high-net-worth individuals. Their clientele is relatively less affected by economic changes, and the scarcity of their products brings higher social status value. Even for middle-class consumers, purchasing entry-level products from these brands often yields better value retention.
Another type is luxury brands that are deeply rooted in specific fields.
For example, Moncler, which dominates the luxury down jacket sector, saw its revenue grow by 17% year-on-year to 705 million euros in the first quarter of 2024. Similarly, Brunello Cucinelli, one of the few large luxury brands specializing in cashmere and also catering to high-net-worth individuals, saw a 16.5% increase in sales in the first quarter.
Another type of brand provides innovative value to consumers.
Miu Miu’s sales increased by 89% year-on-year in the first quarter, following a 58% growth in 2023. Miu Miu is not a brand that retains value, nor does it focus on specific fields or primarily target high-net-worth individuals. Its recent resurgence is attributed to its bold and eye-catching designs.
In recent years, consumer dissatisfaction with the continuous price increases, conservative designs, and lackluster marketing of large luxury brands has been on the rise. In today’s market, which increasingly focuses on classic and value-retaining products, Miu Miu offers consumers a channel to satisfy their rebellious sentiments. Furthermore, choosing products that do not retain value is another way of demonstrating social status.
These three types of luxury brands’ steady growth may impact the operational models of traditional top luxury brands. Pursuing all-encompassing strategies was the trend during the luxury industry’s rapid growth over the past decade, with many luxury brands hoping to strengthen their leadership by broadly incorporating various concepts. However, this also carries the risk of diluting their value.
As the growth cycle of luxury sales ends, previously validated models may no longer yield sufficient returns. Regardless of which type of development strategy a luxury brand chooses fake hermes bag, the core message remains the same: the era of luxury brands scrambling to join pop culture is gradually ending, replaced by an era emphasizing the satisfaction of personal tastes and aesthetics.

Categorized as: Clothing & Fashion

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