Hermes recently launched their new flagship store in India in the high end Oberoi Hotel in Delhi. The French fashion house is attacking full-force at a time when most brands are cutting back, on their costs; DKNY even skipped print campaigns altogether this season, opting instead to recycle runway photos as ads.
Does the new store opening in India mean Hermes feels untouchable? Does it mean they know something the rest of the fashion world doesn’t about getting ahead?
“Why not open a store in India alongside?,” CEO Patrick Thomas says he’d thought after Hermes began planning an India-inspired fashion collection a few yeasr back. “So here we are after studying the market keenly; I am the kind of guy that does not leap until I see that something is there, and feel I am in a position to take that next step. Stoles, scarves, bangles, gift items with Indian motifs, patterns and colours rub shoulders with the standard pick-me-ups. And while it is not necessary to spend millions here… we do not mind if you do!”
Most certainly that is their hope. It will be interesting to monitor the spending habits of fashionistas in India in contrast to those in North America.
As we’ve already noted, Black Friday will see high fashion labels reduced in America, and even high end fashion magazines like Vogue are emphasizing budgeting this holiday.
What Makes This Trend Stand Out
- Expansion in Emerging Markets
- Luxury fashion houses such as Hermes are exploring expansion opportunities in emerging markets like India to capitalize on potential for growth.
- Resilience to Economic Recession
- Hermes' decision to open a new flagship store in India during a time when most brands are cutting back on their costs serves as a testament to the resilience of the luxury market during economic recessions.
- Cultural Collaboration
- Fashion brands such as Hermes are collaborating with foreign cultures through motifs, patterns, and colors to attract local consumers and enhance authenticity.
Sectors Adopting This
- Luxury Fashion
- The luxury fashion industry, which has long been associated with exclusivity and high-end price points, has shown resilience to economic downturns and is exploring opportunities in emerging markets.
- Retail
- Retailers in both emerging and established markets are catering to the changing consumption habits of consumers, including increased demand for luxury goods in developing markets and budget-consciousness in developed markets.
- Marketing and Advertising
- Marketing and advertising firms are working with fashion brands to develop culturally-relevant campaigns that resonate with local consumers, demonstrating a deep understanding of foreign markets and consumer sensibilities.
