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Hermes China moves into second-tier city

Hermes China is set to make its second-tier city debut with a store in Changsha.

This follow studies showing that such lower-tier cities will have more “high-income” residents and consumers than Beijing by 2030, and the way has already been paved by such brands as Gucci and Louis Vuitton.

During the first quarter this year, Hermes had 11.2 per cent growth rate to reach €1.35 billion (US$1.5 billion). This increase was mainly driven by a strong demand in China for its silk scarves and Birkin bags.

“All geographical areas have grown and we saw an acceleration of sales in Mainland China, Hong Kong and Macau, which we have not seen for a while,” says Hermes global chief executive Axel Dumas.

He says the strong market in China helped offset a downward trend at home for the French luxury house.

Hermes expanded its distribution networks in Greater China last year, opened a store in the MixC Shopping Mall in the tourist city of Chongqing, launched a pop-up in Beijing’s China World Shopping Mall and renovated its store inside the Beijing Peninsula Hotel.

In July, it reopened its store at Hong Kong International Airport, and in August, launched a store inside the Wynn Palace Hotel in Macau.

Meanwhile, it has closed stores in several cities in France. On the other hand, Bloomberg reports the brand is recruiting more workers in Europe to meet the demand for handbags in Asia.

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