The Analysis of the Marketing Strategy of Hermès and accompanying word of mouth on social media

Abstract

Luxury brands always have followers obsessed with purchasing the latest or the most popular goods from brands and posting online with related information, such as the customer service they receive, photos of the products, advice for others, etc. Therefore, this paper focuses on Hermès-one of the most successful luxury brands, with the assessment of three tactics (finding inner remarkability, leveraging game mechanics, and making people feel like insiders) it uses to gain customers’ word of mouth. A questionnaire is created to determine customers’ behaviors and psychologies when buying luxury goods, with 27 people completing the questionnaire. It is clear that the strategies of Hermès contribute to its high reputation among customers and motivate them to buy more. Still, some drawbacks, such as customer resistance and increasing profitable fake goods markets, are also significant. The results can help Hermès to create optimized tactics by considering modern customers’ needs during the post-pandemic era when more people decide not to have retaliatory consumption but only spend on necessities.