Hermès to invest "tens of millions of euros" in Chinese brand
10/10/2012
Patrick Thomas, chief executive of the Paris-based company, told financial publication The Wall Street Journal that it is aiming to capitalise on the rise of Chinese luxury consumers who care about quality over flashy displays of wealth.
“Forget the word ‘luxury’ entirely. Use only the word ‘quality,’” he said. “This is what Chinese want, and it will be a justification of price.”
According to McKinsey & Co survey of 1,500 consumers whose annual household income exceeded 250,000 yuan ($40,000), more than half (52%) of respondents said they prefer understated luxury items, up from 32% two years earlier.
Mr Thomas said he expects Shang Xia, which sells China-inspired apparel, jewellery and furniture for as much as 620,000 yuan ($99,000), to eventually overtake Hermès sales in China.
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