Month: September 2020

Hermes Everything Under Control

From the upstream raw material supply to the downstream retail stores, Hermès has been adhering to an endogenous growth strategy for many years. More than 75% of its products are produced in-house, which can be described as the entire luxury goods industry. The most ‘independent’ brand. While continuously increasing the overall scale, this also fully explained the continuous improvement of Hermès’ profitability. Its net profit margin not only increased by about 14 percentage points from the beginning of listing, but also significantly better than LVMH, even with higher profitability. Coach, a light luxury brand, is not its rival.

9In September 2013, the French financial regulator AMF finally ruled that LVMH Group was fined 8 million euros for the private acquisition of Hermes shares before 2010. LVMH Group said it would not appeal. In the eyes of its head Arnold, Hermes’ 23.1% equity and 8 million euros, the two are important and obvious. As one of the few brands in the luxury industry still controlled by families, Hermès has enough capital to make this luxury crocodile pay patience and money. Although no one can predict, what will happen in the end.

Starting from the ‘Horse Workshop’ in 1837, Hermès has now become a top luxury brand with annual revenue of about 3.5 billion euros. Its sales have tripled since its launch in 1993. Not only does its subsidiary Birkin and Kelly have a long ‘customer waiting list’, it is obviously its profitability that makes Arnott covet. In 2012, Hermes stated in its annual report that the operating profit margin reached a record high, and the operating profit margin of 35% in the first half of 2013 showed that it had once again surpassed; the net profit attributable to the parent company experienced a ‘bottleneck period’ after many years After that, it also reached a new high, not only an increase of about 14 percentage points from the beginning of the listing, but also has certain advantages compared to 12.19% of LVMH or 20.39% of Coach, which represents light luxury (Figure 1).

All this is thanks to the endogenous growth strategy Hermes has been adhering to for many years. To a certain extent, it may also be the most ‘independent’ brand in the luxury industry, because more than 75% of its products come from its 45 workshops. Not only do all the leather goods be arranged by themselves, but they also have several leather factories. At the downstream end of the industry chain, the policy of ’emphasizing direct sales and selling lightly’ has been implemented for decades. Although it has slowed down the pace of opening stores in recent years, both the revenue scale and profitability have risen. For Hermès, it is a natural and gradual process to continue to extend the industrial chain and gradually strengthen the control in all aspects, until finally everything is under control and it becomes the true ‘maker’ of luxury goods.

Vertical integration

1In January 2013, Hermès acquired Annonay, a French cowhide manufacturer, to strengthen its control in the upstream of the leather goods industry chain. Prior to this, it had owned 3 factories for processing rare leather. This not only guarantees the quality of leather produced by Hermès, but also makes it play a middleman role in the leather industry chain-selling raw leather to other luxury brands in 2012 generated 69 million euros in revenue. In recent years, the major groups have been increasingly competing for leather materials, Hermès has undoubtedly established its own advantages.

Today, Hermes leather products are produced by more than 2,000 highly trained artisans located throughout France. In order to cope with the growing consumer demand for leather products, based on the acquisition of three leather workshops in the first 10 years, it added two more workshops and more than 200 artisans in 2012.

Although the average price of 300 euros of scarves and 6000 euros of Birkin handbags are not at all on the order of magnitude, for the silk scarves that need to be completed through seven sessions and lasted 18 months, Hermes also grabbed the source and controlled it. From the purchase of silk raw materials, spinning, weaving, printing and dyeing to the final manual crimping. In order to ensure quality, Hermès also has a textile company that specializes in the development of various technologies related to fabric design, coloring and weaving. This textile company also owns 39.5% of Perrins & Fils, a leader in the knitting industry. , And gradually enhance their professional skills through cooperation with them. In 2012, Hermès acquired a new dyeing factory.

Even for the tableware sector with revenue of 60 million euros, which only contributed 2% of the group’s revenue, Hermès has spared no effort in its vertical integration. As early as the 1980s, it became a famous French glassware manufacturer Saint-Louis and silverware manufacturer Puiforcat. Major shareholder. And in 2011, he set up a joint venture with Italian fabric expert Dedar and began to study related interior design and decoration skills, including wallpaper.

From the perspective of the company’s structure, in addition to perfume, the remaining five departments of Hermès currently introduce foreign aid to strengthen their own strength or extend upstream to increase control over the supply chain. Benefit maximization has helped Hermès reduce costs to a certain extent and achieved continuous improvement in profitability. ‘Make a line, drill a line, make a line, refine a line’, although simple, it is not easy to do, and Hermès has always done it. In the silk business, the vertical integration process has been up to 75 years ago, and it is still continued. Now, it has started to do the same in the field of watches.

Unlike other departments stationed in France, Hermès’s watch department (La Montre Hermès) was built in the watch kingdom Switzerland from the beginning. The consideration of “the moon is near the water tower” shows Hermès’ determination. In the beginning, brands such as Jaeger LeCoultre, Vacheron Constantin and Audemars Piguet produced watches for them. From these collaborators, Hermès learned the original skills of watchmaking. It was not until 1978 that its watch department was formally established, and Hermès began to move towards becoming a true watchmaker.

In 2006, in order to master the core technology of watches and clocks, Hermès invested 25 million Swiss francs to buy a 25% stake in Swiss high-end movement maker Vaucher. Prior to this, Vaucher had been the supplier of its movements for 3 years. . In the production of watch cases and dials, Hermès has repeated the tricks, cooperating and then investing in shares, and has successively become the watch case manufacturer Joseph Erard (32.5%, 2011) and the watchmaker Natéber (100%, 2012 ) Shareholders. According to the person in charge of its watch department, 95% of Hermès watches currently starting at 3,000 euros have been produced in-house, and in some models, this proportion is even as high as 98%. You know, Hermès is also the only watchmaking company in the world that produces its own straps. Its first intimate contact with watches began in 1912 with leather straps.

After infiltration in the industrial chain in recent years, in addition to the surface of outsourcing, in the production of watches, Hermes is the only pointer that has not been touched. Obviously, this product that requires large-scale industrial production to achieve economies of scale and Hermes Not very tuned. In fiscal 2012, against the background of the overall slowdown in the growth of Swiss watch production, the Hermès watch department still submitted a transcript of 173 million euros in revenue, contributing 5% to the group’s revenue (Figure 2).

Emphasis on direct management, not authorization

进一步 In order to further expand the watch business, in addition to cooperating with dealers, since 2009, Hermès has begun to build specialized direct watch stores. At present, there have been 20 stores ranging from 50 to 120 square meters. The practice of opening a direct-operated store not only conforms to the trend of watchmaking companies to gather together to build their own channels in recent years, but more importantly, it is in the same vein as Hermès has always insisted on “focusing on direct sales and neglecting authorization”.

Authorized stores were once the main way for Hermès to explore overseas markets. Since the 1980s, Hermès has widely distributed authorized marketing points in the United States, Japan, other Asian countries and Pacific Rim countries, and has successfully stepped out of France and Europe. By the early 1990s, its authorized marketing points distributed around the world had exceeded 225 In 1994, the revenue from overseas markets accounted for almost half of the total revenue.

此 But since then, Hermès has adjusted its strategy, gradually replacing authorization with direct management, and tightened its control over the channel. From 1999 to 2012, it opened an average of 7.6 directly-operated stores each year, while authorized stores only increased by 1.5 each year. Under this pace of shop opening, by the turn of the century, the number of directly operated stores and authorized stores was almost the same. At the moment, the former is close to twice that of the latter, accounting for more than 63% of the overall channel (Figure 3). . In 2011, after cooperating with local agents for 10 years, two authorized dealerships originally operating in Moscow were also included by Hermès. The Chinese brand “Xia Shang”, which was founded in 2008, previously only opened two directly-operated stores in Shanghai and Beijing. In September 2013, its third store finally appeared in Paris, France, and was exclusively sold by Hermès. The shop is adjacent.

On the whole, Hermès’s store opening speed is not fast. No matter whether it is compared with LVMH or Coach, it is a model of steadiness. In the period of unprecedented prosperity of the luxury goods industry from 2003 to 2007, the total increase of Hermès directly-operated stores + authorized dealerships was only 42, and LVMH and Coach expanded at a rate of more than 20 and 50 each year, respectively. In the past two years, although it has continued to enter new markets, Hermès’s store opening speed has slowed significantly, and it has focused on increasing single-store sales. In 2012, it only opened two new stores in Wuhan and Taichung, and they are all concentrated in the Chinese market.

Obviously, the Asia-Pacific region, and especially China, has become a major town for Hermès formation. In 2012, sales in the Asia-Pacific region (excluding Japan) not only led other markets with a growth rate of 14%, but also contributed significantly to the Group’s overall sales by 4 percentage points to 32% over the previous year (Figure 4). In the first half of 2013, although the Chinese market was facing multiple adverse effects, the entire Asia-Pacific region (excluding Japan) continued to grow with the American market with a 17% increase as the main driving force for the Group’s business growth.

Ultimate In Simplicity Three Classic Tudor Watches Recommended

Tudor, as the younger brother of Rolex, has perfectly inherited the performance of Rolex watches in terms of durability. Some people say that the only difference between Tudor and Rolex is the difference between the movements. Rolex uses the self-produced movement, while Tudor uses the ETA movement, and others say Tudor is the best watch among all watches with ETA movements. Today, the Watch House recommends three classic Tudor watches for everyone, I hope everyone likes them.

Tudor Junya series 72033-62453 watch

Watch Series: Jun Xun Series
Movement type: automatic machinery
Case material: 18k yellow gold-stainless steel
Strap Material: 18k Yellow Gold-Stainless Steel
Case diameter: 32 mm
Domestic public price: 24100
Watch details: BLACK BAY series 79220R stainless steel watch

Watch series: HERITAGE BLACK BAY series
Movement type: automatic machinery
Case material: stainless steel
Strap material: stainless steel
Case diameter: 41 mm
Domestic public price: ¥ 28500
Details of the watch: Heritage Black Bay is designed with today’s popular elements, but its inspiration is taken from a diving watch released in 1954. Since its introduction, Tudor has been innovating this watch until the 1980s. Its arched dial displays exquisite vintage-style details, rare burgundy bezels and “snowflake” hands, which make this iconic model stand out from many divers’ watches.

Tudor prince calendar series 72033-62453 10di watch

Watch series: Prince and Princess series
Movement type: automatic machinery
Case material: 18k yellow gold-stainless steel
Strap Material: 18k Yellow Gold-Stainless Steel
Case diameter: 32 mm
Domestic public price: 32700
Watch details: tudor / 14238 /
Watch comments: For many people at Tudor, it is said that there are too many Rolex shadows on them. This gold watch should be value-for-money in terms of materials. From the perspective of hardware equipment, only the date display function is available. The design of the drum reading is the same as that of Rolex. Although the function is simple, it is very worthwhile to look at from the price point of view. It is not difficult to understand why it has become the best-selling style of Tudor.

Summary: The Tudor watch is a brand that makes the best use of ETA movements. The ETA movements are polished and modified, so it is better than the ETA movements of other brands. If you only buy an ETA movement, Watches, I think Tudor watches are the best choice.

Moon Phase And Acacia Tasting Senator Glasutti Series Watch

From the perspective of the brand, the moon phase function is undoubtedly a technical challenge. In order to show that the watchmaker is skilled, the birth of the moon phase watch means that a brand’s technical capabilities are strong. From a user’s perspective, the actual function of the moon phase may not be of great artistic value. No one is fascinated by the moon phase function itself. It is more based on this function to extend taste, thought or a certain relationship, or even a person . Official model: 100-02-22-12-05

The charm of the Glashütte moon phase watch lies in one key word: location. The position of this moon phase is very decent, just like a curved moon will kiss the case. Official model: 100-02-22-12-05

For the watch itself, the superb craftsmanship of a good watch is often reflected in the details, and maybe the moment of flipping the case will make you fall in love with it. This case is made of stainless steel with perfect radian. Many brands will make stainless steel into a matte form, but one of the reasons why Glashütte did not design this way, I think it is because of its confidence in the material.

The crown of this watch is very beautiful, this crown is made of stainless steel, and the curvature is very moderate. We see that the LOGO engraved on the crown is very eye-catching, and the corners are very well treated. Good watches usually show the charm in the details, and the grasp of the details is more important than many large-scale designs.

The strap of this watch is made of crocodile leather. The use of black crocodile leather material makes the watch richer in quality, showing luxury and nobility. The origin of crocodile skins is different, but Glashütte chose the best leather as the strap of the watch, and it can be seen that a lot of thought was used.
 The non-crown side is very shiny, and Glashütte’s stainless steel is unmatched by other brands. That lustrous beauty is no less than that of precious metals.

This watch has a pin buckle, and the stainless steel clasp fixed on the back is also extremely smooth. This stainless steel buckle should avoid wear during use, because the shiny stainless steel material will affect the beauty and mood.

The lugs of this watch are relatively short, so that when they are worn, they fit more closely to the wrist and are also beautiful. This lug radian is very worthy of reference, because not every beautiful contour can bring comfort and security to the wrist.

For the dial itself, the white dial with blue hands fully demonstrates the characteristics of the Senator series. The beautiful moon phases are displayed between 7 and 8 o’clock on the dial, just like the moon has emotions, and is about to kiss your wrist or the entire earth.

This watch uses an automatic mechanical movement and has very powerful functions. The date display, day of the week display, month display, big calendar, perpetual calendar and moon phase functions, maybe this is the so-called impeccable. We can see that there is still the brand’s unique logo inside the back, which is enough to prove the precision and noble quality of Glashütte’s self-produced movement.

Summary: When we choose a watch, the function can only account for a part of the desire to buy. In fact, the eye contact is very wonderful, and the characteristic dial is more attractive. In addition to these, I think it is the consumer They all want to find a perfect material trust. Some charms are willing to bloom in flowers and plants, while others are more willing to be close to your heart. Official model: 100-02-22-12-05; Reference price: 180,500
More watch details: glashutte / 24882 /

Brilliant Calculations Montblanc Timewalker Chronograph

Montblanc’s strategic focus in 2017 is mainly on the new version of TimeWalker. TimeWalker is Montblanc’s ancestor series. It is the same as the brand kanban product of the 4810 just revised in 2016. However, after Jérôme Lambert took over as president, it forced the new product lines such as Heritage Spirit / Chronometrie to make these old ministers less on stage a lot of.

From the design point of view, TimeWalker has a partial American style whether it is new or old, and from the sales point of view, it is indeed the best watch series Montblanc sells in the United States, so this revision will naturally be regarded as the main US market, and Judging from the recent fluctuations in markets around the world, under the premise that China’s growth has continued to slow, it seems that the brand’s transfer to the relatively stable second largest market in the United States is also a reasonable strategy. In 2017, we saw that many brands have similar trends. Not just Montblanc.

The entire bezel is ceramic, not the color circle is embedded in the metal frame; the sides are carved like Paris nails, which are all so-called car racing elements. The numbers and scales on the circle are filled with inscriptions. , The three-dimensional feeling is quite good, but it is a bit thin

Feature one: Obvious makeover
This TimeWalker update is a big redesign from beginning to end. In addition to the same overall style, the specific design elements that are used are probably only the hollowed out lugs on the sides and the time stamp numbers on the dial, and they have also passed through. A reinterpretation of the designer. The old version of TimeWalker has been completely hollowed out on the side of the lugs. I like to hear opinions, but it is really labor-intensive in the molding of exterior gold parts. The new version greatly simplifies this design, only digging out a section at the same location. Slightly deep depressions, regardless of the structure, greatly reduce the difficulty of molding, but personally, I prefer the new simple and refined style.

A hollow was dug out on the side of the lug, in tribute to the old hollow-out lug. The entire case is made of hairline, and the surface treatment is a more efficient approach. It has not changed much, but the molding is beautiful. The overall appearance is quite neat.

Feature two: Material and design highlight CP value
In addition to these details, the overall lines of the lugs have also been modified. The original lugs are thinner and clearly separated from the case joint. In contrast, the new version is connected straight from the curved apex of the middle case. The case is more integrated, and it also significantly changes the appearance of the watch. There are not many elements on the surface, and almost all have clear functionality. Under the mature processing quality of today’s watchmaking industry, these simple elements also have considerable details. For example, the upper and lower chronograph dials have been three-dimensionalized, and the main disk surface has been painted with radial patterns. The bezel of each series of the series is all-ceramic, which should be very convincing for consumers who pay attention to CP value in sales.

The watch is equipped with Sellita SW500 movement. The early stability of SW500 has occasional problems. It is not as smooth as SW200 replacing 2824 in the popularity of replacing 7750. However, with the improvement of quality, more and more brands have been used in recent years.

Feature three: the racing style until the point
The official materials particularly emphasized that the new version of the design is intended to be a car race, and it does have the taste in color and some industrial details, but strictly speaking it is relatively implicit in the theme of the car, and there is no Pushing it towards too extreme attributes in one breath. Montblanc has always been very competitive at the price of 100,000, but in recent years, more and more brands have invested in this range, and Montblanc has to face more and more intense competition. The reorganization of the TimeWalker series may be regarded as They are actively fighting a move.

TimeWalker Automatic Chronograph

Stainless steel, ceramic material / MB 25.07 self-winding movement / hours, minutes, small seconds, date display / chronograph function / sapphire crystal, transparent bottom cover / waterproof 100 meters / diameter 43mm / reference price: about 31,000 RMB