Founding family rules Hermes again | RetailDetail

Founding family rules Hermes again

Founding family rules Hermes again

French luxury house Hermès is back under control of the founding family: Axel Dumas has become Hermès’s new CEO, ending Patrick Thomas's eight year reign in a move to better protect Hermès against LVMH's bid to enter the company.

Protect against intruders

Axel Dumas will now lead the company, founded in 1837, that has known unbridled success in the last few years, but which also has to watch out for foreign intruders. Competitor LVMH has bought a 20 % share in Hermès in 2010, even though it did in a rather secretive way which caused a lot of turmoil at the time.

 

In a response to what LVMH did, the Dumas family moved 51 % of the shares into a separate construction, meaning to protect the family’s majority for at least 20 years. At this point in time, the family owns some 70 % of all shares.

 

Keep growth going

Axel Dumas’s job will be to keep the company’s growth going strong: turnover grew 82 % between 2009 and 2012, to 3.5 billion euro. Net profit was 740 million euro, an incredible 156 % growth compared to 2009.

 

To continue this growth, production has to increase and that seems to be an issue as the formation of a new Hermès professional can take up to 2 years, crippling a fast increase in production. “Our production is , which requires important training time”, Dumas told the Financial Times.

 

43-year old Dumas has a degree in Philosophy at the Sorbonne, law in Paris and also graduated at Harvard. Prior to his entry into the family business in 2003, he used to work for French bank BNP Paribas and co-ran the company with Patrick Thomas since 2013, but he will take full control from now on.

Questions or comments? Please feel free to contact the editors


Colruyt removes Nestlé products from its shelves

21/02/2018

Colruyt has taken at least 18 Nestlé products from its shelves, because it failed to reach a deal about the pricing. For that reason, the products have been temporarily removed from Colruyt stores.

Supermarkets react to European farmer welfare proposal

20/02/2018

Some supermarkets are not happy about the European Commission’s intention to give farmers higher prices. Dutch, German, Austrian distributors warn this will lead to higher prices for the consumers.

Jupiler will disappear for a few months

20/02/2018

AB InBev’s latest marketing stunt is rather unusual: its popular Jupiler brand will disappear from the shelves until July. In order to “support” the Red Devils at the World Cup football (or to benefit from their popularity), it will be rebranded to Belgium.

Colruyt joins PostNL's grocery service

20/02/2018

The mailman will deliver groceries every two weeks from now on: PostNL will collaborate with new grocery service Stockon in the Netherlands. A remarkable fact is that its private label brands are Boni, which is Belgian supermarket chain Colruyt’s private label.

European purchase alliance Agecore puts pressure on Nestlé

16/02/2018

European purchase alliance, Agecore, has threatened to cut 160 Nestlé products from its list unless the Swiss agree to better conditions. Colruyt, Coop and Edeka are members of Agecore.

Kraft Heinz does not meet expectations

16/02/2018

American Kraft Heinz failed to live up to analysts’ fourth quarter expectations, both when it comes to turnover and profit. It did manage a 900 % increase of its profit, but that did not convince any analyst.

Back to top