Hermès implements croc leather strategy
Paris-based leather specialist Hermès has been forced to breed its own crocodiles in order to keep up with demand for its bags.
The company’s CEO, Patrick Thomas, said at the Reuters Global Luxury Summit in Paris, which took place on June 8, that it is breeding crocodiles on farms in Australia. He claims customers sometimes have to wait several years to get their hands on the company’s bags that feature more exotic skins, some of which sell for more than EUR 35,000 ($48,410).
"It can take three to four crocodiles to make one of our bags so we are now breeding our own crocodiles on our own farms, mainly in Australia," he said at the event.
The luxury goods firm is already struggling to produce 3,000 crocodile bags a year. Its leathergoods division, which accounts for 40% of its total business, has been the most robust segment during the current downturn. Hermès has taken on 50-100 leather workers this year to add to the 2,000 staff it already employs in France.
Speaking about its leathergoods division, Mr Thomas said: "We cannot face demand. We have massive over-demand. We are limited by our ability to train new craftsmen."
