Hermès on the threshold of Haute Couture?

Hermès could soon take a significant step by entering the exclusive world of haute couture. This surprising yet plausible possibility was mentioned by the brand's executive chairman, Axel Dumas, in an interview with the Financial Times on September 26th. "We could do couture, we're not ruling it out," he said, raising questions within the fashion world. For such an iconic brand, this move would be more than just a sidestep; it would be a subtle redefinition of its DNA and a reaffirmation of its commitment to excellence in the most prestigious textile sector. Hermès, known for its focus on exceptional craftsmanship, could broaden its horizons without deviating from its core values. However, the question remains: how far is this fiercely independent luxury house willing to go in a field where the codes are already well-established?

If Hermès were to embrace haute couture, it would involve maintaining total control over every stage of production, an undeniable principle for the brand. Unlike other fashion giants like Versace or Armani, who have diversified through licensing in hospitality or eyewear, Hermès remains committed to a more vertical and controlled approach to expansion. However, entering the world of haute couture is no small feat. The conditions for joining this elite circle are rigorously defined by the Chambre Syndicale de la Couture, under the authority of the French Ministry of Industry. Such a move would mark a turning point for the brand, founded in 1837, although no formal steps have yet been taken. Should this project come to fruition, it would require the brand to achieve an absolute level of excellence in a realm where only a select few can claim the legally protected title of "haute couture."

The financial aspect of such an expansion is also worth considering, as haute couture can be highly lucrative for brands that venture into it. With creations that sell for six-figure sums, Hermès could further boost its already impressive performance. In the first half of 2024, the brand recorded revenues of €7.5 billion, an increase of 12%, a remarkable figure in a context where other luxury giants, such as LVMH (-14%) and Kering (-11%), have seen significant declines. Hermès also seems to have avoided the drop in luxury consumption in China, a key market for the sector, with a 12% growth in the Asian market. "I'm not worried about Hermès' structure in China," said Axel Dumas, emphasizing the loyalty of customers to quality, giving Hermès an advantage as it plans to open a new store in Chengdu soon. Time will tell if this stability continues in the years to come as the brand may be preparing to dive into the demanding waters of haute couture.