\u201cWe had a slight impact in the first quarter due to geopolitics<\/a>, but we are not responsible for exchange rates or geopolitics,\u201d he said. \u201cIt remains very difficult to predict crises.\u201d<\/p>\n Dumas framed the current environment through what he described as a structurally more unstable global order. \u201cCrises are inevitable and unpredictable,\u201d he said, referencing what he called a \u201cVUCA\u201d \u2014 volatile, uncertain, complex, ambiguous \u2014 world, where chaos has become the new norm, rather than an exception.<\/p>\n Despite that backdrop, he argued Herm\u00e8s<\/a> is structurally positioned to absorb shocks due to its balance across regions and categories, as well as its focus on cultivating local clientele.<\/p>\n \u201cThe Herm\u00e8s model \u2014 balanced across m\u00e9tiers, geographies, with a strong focus on quality \u2014 seems to me a good strategy in such an unstable world,\u201d he said. \u201cSo I remain optimistic about the fundamentals of Herm\u00e8s and our ability to evolve in an anxious world.\u201d<\/p>\n A key shift, Dumas said, lies in how luxury demand is now driven less by macroeconomic growth and more by changes in personal wealth linked to financial<\/a> and property markets.<\/p>\n \u201cThe biggest transformation I have seen in recent years in the behavior of our clients .\u2026 Until the mid-2010s, the best indicator was GDP growth,\u201d he said. \u201cFrom the mid-2010s, the proxy that gives the strongest signal is real estate valuation and stock markets.<\/p>\n \u201cPeople buy much more according to the evolution of their wealth than according to the evolution of national income,\u201d he said.<\/p>\n That shift has been particularly visible in China, where weakness in real estate has weighed on consumption among parts of the population, he added. \u201cThe problems we can see today in China, for example, come first from a decline in real estate, which leads part of the population to spend less and save more,\u201d Dumas said.<\/p>\n At the same time, he said geopolitical fragmentation is reshaping customer demand, with local consumption and \u201cmultilocal\u201d purchasing patterns becoming more important.<\/p>\n \u201cBecause we are a small-volume brand, because we are exclusive, because this quality is not found elsewhere \u2014 we continue to see very strong interest across all geographic zones,\u201d Dumas said.<\/p>\n He pointed in particular to the Middle East, where the current conflict has disrupted tourism flows but not eliminated demand.<\/p>\n \u201cWhere we see a risk area is the Middle East,\u201d Dumas said. \u201cWe were growing strongly there before the war. If the high-spending, traveling clientele is affected, we too can be affected, though more moderately.\u201d<\/p>\n He contrasted this with past crises, noting that during the pandemic, Herm\u00e8s temporarily closed most of its stores, while the current disruption has been more uneven. And like the post-pandemic \u201crevenge spending,\u201d Dumas believes that pattern will hold.<\/p>\n \u201cAfter a crisis passes, we often see a rebound in consumption \u2014 a desire to enjoy life again,\u201d he said. \u201cThat is human nature.\u201d<\/p>\n On pricing power and tariffs, Dumas downplayed their relative impact compared to structural cost pressures in Europe.<\/p>\n \u201cEveryone talks to me about tariffs, but tariffs cost us much less than producing in France with the \u2018exceptional contribution,\u2019\u201d he said, taking the first of a few swipes at the French government\u2019s \u201ctemporary\u201d tax applied to large corporate profits, which has been reintroduced several years in a row.<\/p>\n Dumas added that Herm\u00e8s has increased prices in the U.S. to offset the cost of tariffs, which has not dented sales in the country. \u201cTariffs have been a small obstacle, but not the biggest obstacle in Herm\u00e8s\u2019 path,\u201d he said.<\/p>\n A defining feature of Herm\u00e8s\u2019 model, he added, is its rejection of conventional marketing-heavy luxury strategies.<\/p>\n \u201cI would say our first marketing tool is in the price of the product,\u201d Dumas said. \u201cWe hope the product speaks for itself, and we therefore have lower marketing costs.\u201d<\/p>\n He contrasted this with competitors that rely more heavily on advertising to support higher production volumes. \u201cSome put the money elsewhere and then have to spend more on marketing to explain that [the product] is great.\u201d<\/p>\n Dumas was also questioned on the company\u2019s policy on counterfeits, \u201cdupes\u201d and the second-hand market. He referred to both reputational risks and cultural complexity, but downplayed their long-term impact on the brand.<\/p>\n Geographically, Herm\u00e8s continues to expand selectively, prioritizing markets where local infrastructure and demand justify direct presence.<\/p>\n Regarding Saudi Arabia, where other luxury peers have been expanding rapidly, Dumas said they are searching for the right move now that Saudi Arabia\u2019s foreign investment and commercial codes under its Vision 2030 plan have made it easier for international groups to operate more directly in the kingdom than under the previous, more licensing- and partnership-heavy rules.<\/p>\n \u201cNow we can operate directly, so it is part of our thinking. We have a very strong Saudi clientele. Some clients travel to Europe or other stores in the region. There is strong demand there,\u201d he said. \u201cFor now, we are negotiating. We are working on it, but we need to find the right partner locally.\u201d<\/p>\n On India, Dumas described a market full of potential but structural constraints. \u201cIndia is a very interesting country. We have a good Indian clientele, but they do not necessarily buy in India,\u201d he said, citing high import duties, strong domestic artisanal competition and local style. \u201cIt is a formidable country where we will develop, at a pace that remains somewhat mysterious.\u201d<\/p>\n Dumas struck a similar tone on Africa, where projects are under consideration, but indicated that any opening is still some way off.<\/p>\n \u201cWe have not yet found the right locations in terms of retail infrastructure and sufficient middle-class development,\u201d he said. \u201cWe do have a strong African clientele who travels to our stores, but we usually establish ourselves in a country only when there is a sufficiently large local customer base.\u201d<\/p>\n The group is still on track to launch its couture collection in 2027<\/a>, Dumas said, with ateliers already working on it under women\u2019s creative director Nad\u00e8ge Vanh\u00e9e. But he emphasized yet again that it will be launched \u201cwhen we are ready.\u201d<\/p>\n On the beauty front, Dumas said the expansion into that category has been a \u201chalf success, half failure\u201d story so far.<\/p>\n Dumas said Herm\u00e8s beauty is performing well in its own stores and directly controlled channels, where the brand can manage the full immersive retail experience and maintain tighter control over storytelling and customer engagement, but namechecked the bankruptcy of Saks Global in the U.S. as an example of the overall fragility in department store-led distribution, as well as consolidation, citing the pending possible merger of the Est\u00e9e Lauder Cos. and Puig.<\/p>\n Seemingly referencing Kering\u2019s sale of its beauty arm to L\u2019Or\u00e9al, he added that Herm\u00e8s will continue to develop its beauty business \u201cindependently.\u201d<\/p>\n He added that men\u2019s fragrances have performed well, with more softness in the women\u2019s categories. To that end, the company is still planning to launch hydration care and additional makeup products in the women\u2019s categories, which have been harder to crack.<\/p>\n The meeting opened with a trio of tap dancers, setting a buoyant tone for a morning that also featured a short film on silk scarf production in Japan.<\/p>\n Several shareholders grumbled about the inefficient invitation and entry process, which held up the start of the meeting by a half hour and left several attendees without voting machines. Supervisory board president Eric de Seynes said that RSVPs to the in-person event were up 35 percent this year, with many affirmative replies coming within the final 24 hours, leading to the backup.<\/p>\n The voting yielded no surprises, as all motions were passed, including the appointment of Lucia Sinapi-Thomas to the board, where she will take up the position of chair of the audit committee for a three-year term.<\/p>\n Best of WWD<\/p>\n Sign up for WWD’s Newsletter<\/a>. For the latest news, follow us on Facebook<\/a>, Twitter<\/a>, and Instagram<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"PARIS \u2014 Herm\u00e8s International is leaning on its long-standing strategy of product development and geographic diversification as it…\n","protected":false},"author":2,"featured_media":27465,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12919],"tags":[20129,4953,13023,241],"class_list":["post-27464","post","type-post","status-publish","format-standard","has-post-thumbnail","category-hermes","tag-axel-dumas","tag-hermes","tag-hermes-international","tag-product-development"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/27464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/comments?post=27464"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/27464\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media\/27465"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media?parent=27464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/categories?post=27464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/tags?post=27464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} A look inside the opening of Herm\u00e8s\u2019 first Nashville store. <\/p>\n
Herm\u00e8s Fall 2026 Ready-to-Wear Show at Paris Fashion Week <\/p>\n