Financial and Marking Analysis on Hermes International SA

Abstract

Since its establishment in 1837, Hermes has been adhering to quality, culture is driven, handmade, and adhere to the development of high-end, from the original harness store development into today's famous super luxury giant. This paper analyzes Hermes from two aspects, its own financial situation and the surrounding industry market. In terms of financial performance, Hermes showed a good recovery from the negative effect of COVID in 2020, creating a leading position over the industry in sales revenue. Combined with well turnover and debt-paying ability, the business performance is generally in stable growth. In terms of the market analysis, the SWOT and industrial competitor analysis was made to point out the actual utilities of Hermes’ strategies. Hermes insists on the family's absolute control of the brand to ensure the maintenance of the family business model. In strategies, the membership system and hunger marketing to increase user engagement, the little discount style also creates a noble image of the brand.