Analysis of the Exclusivity of Hermès Handbags

Abstract

During the Covid-19 pandemic, the consumption and essentiality of luxury products have been affected by the economic recession. Hermès Handbags, being the main source of its revenue, did not decline, and even increased. The aim of this paper is to analysis the exclusivity of Hermès handbags as a key factor of its success. Through this analysis, the paper will also explain how Herne’s handbags endured the economic shocks. The main determinant market power of demand and supply on its pricing strategy in the luxury industry, and the impact of luxury goods on people’s lives will also be analyzed in by this paper. The involvement of luxury goods’ status representation, function, and aesthetic has profoundly influenced people’s consumption attitude in regard to luxury goods as a financial product for investment. This article will help in establishing what is important in increasing brand position and brand image in the market. Lastly this article will help hemes handbags become more competitive in the developing market economy.