Published by MBA Skool Team, Last Updated: January 23, 2022
SWOT analysis of Hermès analyses the brand by its strengths, weaknesses, opportunities & threats. In Hermès SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Hermès to benchmark its business & performance as compared to the competitors. Hermès is one of the leading brands in the lifestyle and retail sector.
The article below lists the Hermès SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Hermès SWOT Analysis:
For Hermès, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Hermès looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Hermès :
1. Hermès is a French company with a strong brand name and global presence
2. Hermès markets its products across the world through a network of 300+ exclusive stores of which 180 are operated directly
3. The company principally operates 30+ production units across France, Japan, Europe, the Americas and Asia-Pacific.
4. Good presence and wide product range of luxury goods on offer
5. There are more than 10,000 people employed with Hermès International company
6. Apart from clothes, Hermès offers luxury watches, jewelery, perfumes etc.
7. The company has worked some of the world's most well known designers
8. Strong branding and marketing through online ads, print media, digital marketing and social media
9. Hermès products are available online via the company website as well as leading ecommerce stores
10. The annual revenue of the company is more than $7 billion
11. Since Hermès bags are handmade, there is an exclusivity in the value offered by the brand
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Hermès SWOT Analysis:
1. Intense competition means limited market share growth for Hermès
2. Fake imitation of the brand affects its business and hurts brand value
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Hermès SWOT Analysis:
1. Hermès can try to expand its market globally to tap customers
2. To use the digital revolution to its full advantage and expand its business online through ecommerce
3. The brand can focus on advertising to increase brand recall
4. Acquisition of smaller luxury brands can enhance the company's position
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Hermès are as mentioned:
1. Intense competition means reduction of Hermès market share
2. Ease of substitution as many options available to the customer
3. Imitation & replica products is the biggest threat in this industry
4. Being a global brand, recession and economic instability affects its global operations
There are several brands in the market which are competing for the same set of customers. Below are the top 11 competitors of Hermès:
Hermès offers a wide range of premium leather products, perfumes, shoes, clothes etc.
People looking for premium stylish clothing and accessories
Urban upper middle class men and women
Hermès is a high end luxurious fashion clothing and accessory brand
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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