Hermes, Artisan of the Birkin Bag, Rolls Out a Fanny Pack

Everyone knows Hermes as a high priced luxury brand. Hermes has always maintained a prestige reputation, catering only to the wealthy and designing their stores around that persona. Hermes is actively trying to change that up by pursuing a new target market, namely the millennials.

Due to Hermes' prior target market being completely different than their new target market, Hermes will adjust their marketing strategies to best fit the needs and wants of the millennials. Hermes started by picking a location that is more hip and cool than their normal locations. While designing and decorating the interior they built a bar area and made sure to add lots of colors all around to draw the attention of new potential customers. On the first floor, customers will see new fun products such as skateboards and roller skates accompanied by bold patterns and loud colors. The employees will no longer be wearing suits, instead, they will wear trousers and sweaters to create a more inviting atmosphere. Another way Hermes is accommodating their customers is by placing less expensive items at the storefront and having jewelry on display for customers to touch and try on, this adds on to the inviting atmosphere.

Hermes is implementing these changes in its newest location in Manhatten, New York as a test run to see if these new adjustments directly affect their relationship with the millennials.

This relates to the marketing concept, by adjusting their marketing mix to accommodate their new target market. They are not only making new products and tweaking prices but they are changing the whole image of the brand altogether. This also pertains to market development because Hermes is trying to expand their market by selling the same products, with the help of a few new products such as the fanny pack that will retail for $6,000. Hermes has always been a highly selective company, meaning they have limited stores to create a high demand. Now they are shifting to a less selective brand by opening up more locations, mostly in China currently. Their new branding demonstrates how they are focusing on persuading the customers as to why they should shop at their stores, ultimately creating desire. Hermes is prospecting by realizing who their goal target market is and following the leads to catch their attention, yet not throwing quality and craftsmanship out the window. They are still sticking to original core values while changing up their vibe in a few new stores to increase the demand of the target market.

I picked this article because I thought it was interesting how such a luxury brand as Hermes, wants to tone down their reputation to catch the attention of millennials. A lot of luxury brands want to make the consumer feel poor as a method to get them to want to prove them wrong by making a purchase. This kind of psychology is seen in many luxury stores, and to see Hermes actually focusing on making the customers feel happy and relaxed, in my opinion, is a better strategy.

LINK: https://www.wsj.com/articles/hermes-artisan-of-the-birkin-bag-rolls-out-a-fanny-pack-11554313767