1. How Hermès conquered the luxury industry. Between 2010 and 2019, Hermès tripled its revenues to $7.7 billion, with operating margins of 34%, the best in the industry, which comes down to its skill at winning over a new generation of consumers, not by reinventing itself, but by hewing closely to its original mission of selling handmade goods, designed to last forever. – Read More on Fast Co.
2. RELATED READ: With Q4 Results, Hermès Continues to Weather COVID Better Than its Peers. “Hermès benefits from top desirability across borders, and long waiting lists on its iconic products,” according to Bernstein analyst Luca Solca, who cautions, however, that a potential “failure to convincingly innovate could push Hermès in a ‘classic corner,’ out of synch with younger global luxury consumers,” and that “higher leather goods volumes – as silk declines – could reduce ‘rarity effect,’ perceived exclusivity, and – ultimately – brand desirability long-term.” – Read More on TFL
3. What Does Kering’s Deal with Vestiaire Collective Mean for Secondhand Fashion—and the Entire Industry? The investment was made at the “brand level,” meaning Kering’s houses are under no obligation to partner with Vestiaire or engage with resale at all. However, it’s unlikely they’d ignore the movement. – Read More on Vogue
4. Fashion giant H&M pauses placing new orders in Myanmar: Sweden’s H&M, the world’s second-biggest fashion retailer, said that it was shocked by the use of deadly force against protesters in Myanmar and that it had paused placing orders in the country. – Read More on Reuters
5. Ferrari’s Formula One pulls up on fashion lane with Armani clothing deal: Ferrari’s Formula One team has signed a multi-year agreement with Giorgio Armani, which will supply branded clothing for all the racing team’s off-track duties, Scuderia Ferrari and the Italian fashion house said on Tuesday. – Read More on Nasdaq
6. RETRO READ: What a Decision Over Ferrari’s “Testarossa” Trademarks Means for Luxury Brands in the Resale Economy. A December 2020 decision from the Court of Justice of the European Union provided a win for Ferrari that could have significant implications for other luxury brands, including those in the fashion space. – Read More on TFL