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Hermès defies the luxury crisis and grows by an impressive 15 percent in 2024—thanks to brand management that elevates time, craftsmanship, and exclusivity to perfection. From a sixth-generation family business to controlled scarcity of iconic bags, Hermès defines luxury beyond trends and quarterly figures. Discover why Hermès doesn't just sell products, but a timeless vision of freedom and immortality.

The luxury crisis that isn't one – if your name is Hermès

The figures speak for themselves: while the luxury market in 2024 was challenging for Gucci, LV, and Dior, Hermès achieved growth of 15 percent in 2024.¹ With sales of €15.2 billion and operating profit of €6.2 billion (40.5 percent of sales), the brand significantly outperformed its competitors.¹ This resilience is no coincidence, but the result of unique brand management, which I will decode below.

History: Cross-generational brand consolidation – when time becomes an ally

Hermès was founded in Paris in 1837 by Thierry Hermès, who settled in Paris, then known as the "capital of leather," to master the craft of saddlery. Initially, the focus was on fine and durable bridles and horse harnesses. As horse-drawn carriages slowly gave way to other means of transportation, the range was expanded to include suitcases and leather bags from 1890 onwards. Handbags were added to the product line in 1920.

Brands that radically reinvent themselves risk losing their core customers. Hermès, on the other hand, has been perfecting the art of sedimented excellence since 1837. From saddlery to suitcases to handbags – each product line expansion took not years, but decades.

The result: Hermès does not think in terms of short-term collections. The brand accumulates value like geological layers – each generation adds a new layer without destroying the ones below.