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Hermès SWOT Analysis

Published by MBA Skool Team in Lifestyle and Retail category Last Updated: June 03, 2023Read time:

Here is a detailed SWOT analysis of Hermès covering strengths, weaknesses, opportunities and threats.

Hermès Strengths

  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

Above are the strengths in the SWOT Analysis of Hermès. The strengths of Hermès looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Hermès Weaknesses

  1. Intense competition means limited market share growth for Hermès
  2. Fake imitation of the brand affects its business and hurts brand value

These were the weaknesses in the Hermès SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Hermès Opportunities

  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

Above we covered the opportunities in Hermès SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Hermès Threats

  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

The threats in the SWOT Analysis of Hermès are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Hermès SWOT analysis.

About Hermès

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Hermès Overview
Parent Company

Hermès International


Apparels and Accessories


Lifestyle and Retail

Tagline/ Slogan

A sporting life; Time on your side


Hermès offers a wide range of premium leather products, perfumes, shoes, clothes etc.

Hermès STP

People looking for premium stylish clothing and accessories

Target Market

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 which comprises of MBA students, management professionals, and industry experts. 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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