Earlier this month, Hermes International announced that its revenue for the first six months of the year rose 22% to $1.89 billion and confirmed its yearly forecast for sales growth between 12-14%. Plus the company announced that they’ve hired almost 400 new employees and that they’ll be opening another 10 new stores this year.
Which begs the question, “What recession?”
It seems luxury is alive and well and doing just fine.
But I know that not every gal reading this post is able to fill her closet with goodies from Hermes just yet.
And I understand that not every gal reading this post will be running out to invest $260 dollars for one share of Hermes stock.
But Hermes is a fine example of a simple fashion investing formula that all of us Vintage Crusaders should know:
Quality + Scarcity = High Resale Value
And Hermes has this formula down pat.
The quality of Hermes goods is unsurpassed. Scarves are individually screenprinted with up to 40 vegetable dyes and each color is allowed to dry for one month. Then the edges are hand rolled and hand hemmed.
Handbags are created one at a time by a single artisan who hand-stitches them with linen thread and an awl. Watch a short video of an Hermes artisan at work here and you’ll understand why it takes 18 hours to produce the famed Kelly bag.
Hermes also has become a pro at scarcity. The company deliberately keeps production low to ensure long waiting lists and it never discounts its goods. While it might be tempting to boost production and tap all the consumer demand, their Chief Executive Patrick Thomas has publicly declared that isn’t going to happen.
Which means that Hermes goods have and will continue to have high resale value.
So whether you decide to splurge on today’s VPOD, a gorgeous and classic pair of jeweled Hermes sandals, or you have you eye on a pretty Hermes scarf, bracelet, or bag, chances are good that not only will your Hermes purchase serve you faithfully for years to come but it will cost less than you think when you factor in what you can resell it for when you grow tired of it.
That’s why Hermes will always be a smart fashion investment for a Vintage Crusader!
Available at Marzilli Vintage.
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