According to theguardian.com, French luxury house Hermès has reported a “remarkable” near-50% jump in sales in Asia as wealthy Chinese shoppers flocked to buy its colourful silk scarves and ultra-expensive handbags.
The Parisian company, whose leather handbags can be bought on the Hermès website for £4,000-£20,000 and whose silk scarves start at £265 for a bandana, said that in the final three months of 2020, sales in its Asian business, which includes China and Korea, were up 47%, helping make up for sales lost earlier during the coronavirus pandemic.
After a tough start to 2020, sales improved and were up 16% overall in the last three months of the year, which was ahead of analysts’ expectations.
Despite the late burst, full-year sales at Hermès, which is controlled by the billionaire Dumas family, finished down 6% at €6.4bn (£5.5bn). Profits were down 9%, to €1.4bn.
The group’s executive chairman, Axel Dumas, described the figures as solid and a reflection of the “desirability of our collections and agility of our craftsmanship”.
Hermès is paying its 16,600 staff a €1,250 bonus to thank them for their commitment – a generous sum, albeit an amount that would not stretch very far in its own shops.
The company’s famous Birkin bag, named after the actor and singer Jane Birkin, and the Kelly – after the actress Grace Kelly – are among the most prized status symbols in luxury fashion.
The company no longer runs a waiting list for the Birkin and only makes them for “friends”, creating a huge resale market. Two years ago a Birkin sold for £162,500 at a London auction.
Coronavirus travel restrictions have grounded the wealthy Chinese shoppers who are the world’s biggest buyers of designer gear.
However, with shopping sprees in London and Paris off limits, Hermès’ strong figures point to Asian consumers hitting the shops at home, as well as buying online.
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