In luxury, there’s Hermès… and there’s everyone else. Stewarded by one French family over six generations, Hermès sells the absolute pinnacle of the French luxury dream. Loyal clients will wait *years* simply for the opportunity to buy one of the company’s flagship Birkin or Kelly bags. Unlike every other luxury brand, Hermès: - Doesn’t increase supply to meet demand (hence the waitlists) - Doesn’t loudly brand their products (IYKYK) - Doesn’t do celebrity endorsements (stars buy their bags just like everyone else) - Doesn’t even have a marketing department! (they barely advertise at all) And yet everyone knows who they are and what they represent. But, despite all their iconoclasm, this is not a company that’s stood still for six generations. Unbeknownst to most, Hermès has completely reinvented itself at least three times in its 187-year history. Including most recently (and most dramatically) by the family’s current leaders, who responded to LVMH and Bernard Arnault’s 2010 takeover attempt by pursuing a radical strategy — scaling hand craftsmanship. And in the process they turned the company from a sleepy, ~$10B family enterprise into a $200B market cap European giant. Tune in for one incredible story! *Visuals for:* - Haut a Courroies, the “high-belted bag” to carry saddles and boots: https://images1.bonhams.com/image?src=Images/live/2014-06/02/94558567-11-1.jpg - Chaine d'ancre, “Chain of anchors”: https://assets.hermes.com/is/image/hermesproduct/chaine-d-ancre-bracelet-very-large-model--101995B%2000-worn-2-0-0-800-800_g.jpg - Jeu des Omnibus et Dames blanches, “White ladies at play”: https://i.pinimg.com/originals/61/ac/84/61ac84114c03ee8f818d84a7e5684a80.jpg - Screen printing each color on a scarf individually: http://3.bp.blogspot.com/-QjlwKL9D4MU/UHLsucReiJI/AAAAAAAABXA/s_45ULViyQo/s1600/IMG_1615.JPG - The Hermès oranges: https://blog.fashionphile.com/hermes-oranges/ - Sac à Dépêches (today: the Kelly Bag): https://www.hermes.com/us/en/content/106196-kelly/ - Grace Kelly photo in LIFE Magazine: https://i.huffpost.com/gen/1457564/thumbs/o-GRACE-KELLY-BAG-570.jpg?8 - Steps to sew a saddle stitch: https://2.bp.blogspot.com/-aaLc5iBboXo/V7yawv5AlsI/AAAAAAAAHuc/fTrGbwc-1Gc9FYwBVpTLMCF-r-T7cFj0ACLcB/s1600/Beginning%2Bwith%2Bthreads%2Bover%2Ban%2Bedge.jpg - The Birkin Bag: https://www.hermes.com/us/en/content/106191-birkin/ - Pettit h: https://www.hermes.com/us/en/category/petit-h/#%7C *Links:* - The saddle stitch (video): https://youtu.be/g6HOhqaVXW0?si=rdX6cEfgMQpWo31g - Inside the Saddlery at the Faubourg: https://www.thedashingrider.com/hermes-inside-the-saddlery/ - Hermès 2022 Annual Report: https://assets-finance.hermes.com/s3fs-public/node/pdf_file/2023-05/1684143348/hermes-urd-2022-en_01.pdf - Axel Dumas Interview: https://www.youtube.com/watch?v=Htlh8IpER5g - All episode sources: https://www.acquired.fm/episodes/hermes#sources *Carve Outs:* - Anker GaN Prime 100W charger: https://www.amazon.com/Anker-Charger-Compact-MacBook-Pixelbook/dp/B0C4DGBHY2 - Matter: https://hq.getmatter.com - Perplexity: https://www.perplexity.ai - The Score Takes Care of Itself: https://www.amazon.com/Score-Takes-Care-Itself-Philosophy/dp/1591843472 *More Acquired:* - Get email updates https://www.acquired.fm/email and vote on future episodes! - Join the Slack http://acquired.fm/slack - Check out the latest swag in the ACQ Merch Store https://www.acquired.fm/store! _Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions._