The upbeat trading update is likely to cement the view that the global luxury market is becoming increasingly segmented with some brands such as Hermes, Prada, Dior, Balenciaga feeling no pain while others, more vulnerable, are starting to suffer.
“We have not seen any inflexion of any kind in our sales,” Hermes Chief Executive Patrick Thomas told Reuters after the brand’s presentation of their next spring/summer collection in Paris. “Therefore our targets for the year remain unchanged.”
Hermes is known for its €15,000 Kelly and Birkin leather bags.
Many luxury brands, such as Tiffany and Burberry, blame an economic slowdown in China and Beijing’s crackdown on gift-giving for their souring fortunes after having heavily invested opening flagship stores there.
Chinese customers, at home and abroad, are the biggest buyers for many well-established luxury brands such as Gucci and Louis Vuitton.
But luxury analysts also noticed changes in luxury spending patterns which show a rise in purchases of discreet, connoisseur luxury products and a drop in money spent on flashy, logo-embossed items.
“Chinese customers are becoming increasingly sophisticated very fast,” Thomas said.
“Before, they wanted ostentatious items, now they want quality objects. The future of the luxury market lies in products which demonstrate genuine craftsmanship.”
The latest Hermes collection is more eclectic than in the past, critics said, with oversized jackets on extra small shorts, and leather dresses in bright colours such as royal blue or emerald green which paid tribute to the brand’s tradition of leather craftsmanship.
