Archita Verma

Crafting Desire Through Silence: A Case Study of Hermes Marketing Strategies

Archita Verma

Student, BBA (G), Vivekananda Institute of Professional Studies-TC, Delhi, India

E-mail: vermaarchita12@gmail.com

Abstract

January 2025, Paris

Emily Collins, a newly appointed brand strategy analyst at Hermès reviewed the comparative industry analysis report that outlines the digital expansion strategies of global luxury competitors. She observed that Hermès ‘ marketing strategy was very different from that of its rivals. Other companies made large efforts in influencer partnerships, online storytelling, and high-visibility advertising, while Hermès continued to rely on exclusivity, craftsmanship, and scarcity of products as its primary sources of desirability.

Her job is to ascertain whether Hermès’ approach of heritage driven, craftsmanship storytelling, low promotion, and scarcity distribution might continue to be appealing in the evolving premium market.

Initially, the stats looked reassuring. The brand’s reputation for exclusivity remained unmatched by its competitors, waiting lists continued to grow longer, and demand for classic products like the Hermès Birkin bag continued to exceed the supply limit. However, Emily was more concerned with exterior reform than internal performance. In contrast to the boutique-led discovery strategies that have formed Hermès ‘ client interactions, by 2024, more than 70% of Gen Z luxury customers reported finding companies largely through digital channels.

The more she thought about this, the more she realised that success does not just come from communication strategies. It is something bigger. Therefore, this case study looks at how Hermès became the leader in the global luxury market, even after not following the current trends.

Keywords: Luxury Positioning, Scarcity Marketing, Craftsmanship, Brand Storytelling, Competitive Analysis, Quiet Luxury

Introduction

Hermès was founded in 1837 by Thierry Hermès, who initially started their business as a saddlery workshop for horse riders and related equipment. Gradually, the company started trading other products like leather, accessories, watches, perfumes, and more. After all these years, the brand still remains loyal to its founding roots about authenticity and craftsmanship. Hermès likes to keep a controlled distribution of their products, as compared to other competitors. The main strategy which they follow is scarcity which makes the products rare.

Each Hermès product is handcrafted with meticulous details which prioritises quality and craftsmanship since the day the brand started, making it unique and rare. While the other brands focused on constantly changing with the evolving trends, Hermès focused on building its reputation through distinction only. It is a luxury brand which focuses on building its reputation based on its storytelling of craftsmanship and not mass marketing. Hermès is growing organically with no large-scale advertisements.

42.6%

Saddlery and Leather Goods

29%

Accessories & Ready to wear

14.8%

Jewellery and home

6.3%

Silk and Textiles

3.5%

Perfume and Beauty

3.8%

Watches

Table 1.1

Source- “Fiche Hermès International”. Zone Bourse. Retrieved on 12 March 2025

The Strategic Foundations of Hermès Luxury Positioning

Scarcity Strategy

Hermès keeps a waiting list instead of instant purchases so as to have heightened suspense and scarcity for the products. This also increases the offline visits in the store and builds customer relationships, because these products are not available on online websites. The brand intentionally limits access for the most prestigious products in order to convert the waiting time into perceived value time. Due to this consumer psychology, the customers have strong will power to purchase the products at high costs as well. Hermès purposefully maintains restricted manufacturing levels, especially in leather goods, which account for about 42.6% of the company’s overall income (Social Life Magazine, 2025), in contrast to mass luxury competitors that boost supply to capture demand peaks.

Silent Luxury Positioning

Hermès does not use advertisements or famous logos to promote their products. Instead they focus on making products that’re high-quality and unique. The people who buy Hermès products are not just looking for something that will show off their wealth. They want to create products which are of high quality and are special yet meaningful. Therefore, they appreciate good quality products and craftsmanship rather than making products based on the ongoing, ever-changing trends. Hermès has maintained the operating margins above 40%, which are among the highest in the luxury industry. (Statista, n.d.)

Selective Distribution

Hermès has a very selective distribution strategy, the brand controls when and their products are being presented in the stores and even chooses when they need to be sold. This strategy guarantees uniformity in pricing and brand presentation globally. Hermès focuses more on identity building rather than aggressive digital expansion. This makes it easier to obtain uniformity in craftsmanship. Hermès also limits what is available on their online site, keeping the most in-demand pieces exclusively in-store. (Brand Vision, 2024).

Desire Before Launch

Due to the scarcity of products, customers are encouraged to interact with the brand closely as they need to make frequent trips to the Hermès store to check the availability of products. This helps in building brand relationships. The waiting increases the perceived worth of the goods even prior to the acquisition. Because of this, consumers frequently form a close bond with the brand that encourages recurring business, increased confidence in the boutique relationship, and a stronger sense of community within the brand’s exclusive environment.

The Birkin as a High-End Investment Property

The Birkin bag is a highly famous product of Hermès handcrafted from premium material. Due to its limited manufacturing, lengthy waiting lists and high demand worldwide, it is considered to be a long-term investment for the customer rather than just being a fashion accessory. These bags frequently increase in value over time, while the other luxury goods only depreciate in value. Therefore, Birkin is not only a status symbol but also a reliable store of value. . A study by Baghunter further revealed that the Birkin outperformed both gold and the S&P 500 in terms of return on investment for over a period of 35 years. (Miloura, 2025).

Entrepreneurship & Creativity

1,000 store representatives from its international locations travel to Paris twice a year for an occasion known as “Podium.” In an effort to encourage each flagship store to highlight and promote complementary products, the business has asked each flagship to choose at least one item from product categories other than the typical ones (handbags, scarves, ties, fragrances, watches). Because just a portion of the company’s items are offered online and not all products are available in every store, this enhances the appeal of the Hermès brand. Before a craftsman can begin assembling any leather goods in the Hermès collection, they must complete a two-year training program. Only 200 artisans are employed annually by Hermès ‘ leather goods section. (Roll, n.d.; ResearchGate, 2024).

SWOT Analysis of Hermès’ Non-Advertising Strategy

Strengths:

● Limits visibility instead of chasing attention to reinforce exclusivity.

● Builds strong aspirational value through waiting lists.

● By limiting exposure, Hermès recorded €15.2 billion in revenue, a 15% rise at constant exchange rates, despite a 2% fall in worldwide luxury sales. (The Fashion Law, 2025).

● Gives more value to craftsmanship and storytelling rather than doing huge scale campaigns.

● Supports luxury products with premium pricing without paid promotions.

Graph 1.1

Source- Statista. (n.d.). Hermès and the luxury market. Statista.

Weaknesses:

● Lower visibility among consumers who are digital friendly.

● Limited storytelling reach compared to competitors who use influencer marketing.

● Slower customer acquisition in the luxury market segment.

● Hermès Watches section lost 2% to €549 million and its Perfumes and Beauty division fell 8% to €489 million in 2025, indicating structural problems in categories other than its core leather goods business. (Fashion Network, 2026)

● Risk of inaccessibility among aspirational buyers.

Opportunities:

● Rising global preference for the “quiet luxury” sector.

● Millennials and Gen Z are predicted to make up 40% of the world’s luxury consumption by 2030, according to a World Economic Forum report (Market Data Forecast, 2025). This would help in expanding the audience.

● Increasing demand for products like the Birkin as investment assets.

● Growth through digital storytelling without mass advertising.

● Growth in customer categories who prioritize novelty above trend visibility.

Threats:

● Competitors have a strong digital presence as compared to Hermès .

● Risk of reduced relevance if silent luxury positioning does not appeal to customers.

● If not properly controlled, expansion might lessen scarcity.

● According to Bain & Company, sales of personal luxury goods are expected to reach €358 billion in 2025, a little 2% decline from €364 billion in 2024 (Bain & Company, 2025).

● Secondary resale markets impact brand-controlled perception of access.

Conclusion

Hermès is an example of how making people believe in the value of something through stories making it seem luxurious and making it hard to get is more important for brands that want to be seen as high end than just being well known. The brand actually uses the fact that it’s hard to get their products to their advantage instead of letting it hold them back. They do this by not being accessible but having people wait for them and making sure that the stories behind each product are special and meaningful. Hermès likes to keep its profile real and understated.

The brand turns scarcity, waiting lists, handcrafted narrative into an advantage for them rather than a limitation. Hermès also shows us that sometimes not being everywhere and not talking all the time can be a way to communicate. By being consistent and not just trying to be seen, the brand makes owning their products feel special and unique and waiting for them feels like something to look forward to. This is why Hermès is one of the best examples of marketing that is driven by desire.

Questions

Q1. Hermès does not want to lose its exclusivity; can it still make their products seem special and hard?

Q2. In the recent time which AI has taken over and everything is gaining traction from the media, will Hermes still stay prominent in the future?

Q3. Should Hermès also do large scale advertisements like the others, or stay natural to its roots?

References

● Roll, M. (n.d.). Hermès: The strategy behind the global luxury success. Martin Roll.https://martinroll.com/resources/articles/strategy/hermes-the-strategy-behind-the-global-luxury-success/

● Wikipedia contributors. (n.d.). Hermès. Wikipedia.https://en.wikipedia.org/wiki/Herm%C3%A8s

● Statista. (n.d.). Hermès and the luxury market. Statista.https://www.statista.com/topics/7623/hermes-and-the-luxury-market/

● MBA Skool Team. (n.d.). Hermès SWOT analysis. MBA Skool.https://www.mbaskool.com/swot-analysis/lifestyle-and-retail/3821-hermes-international.html

● ResearchGate. (2022, November 5). The analysis of the marketing strategy of Hermès and accompanying word of mouth on social media.https://www.researchgate.net/publication/365163123

● Official Authentication. (2025, March 19). The Hermès paradox: How scarcity, craftsmanship, and controlled desire forged a luxury empire.https://officialauthentication.com/blogs/news/the-hermes-paradox-how-scarcity-craftsmanship-and-controlled-desire-forged-a-luxury-empire