The Art of Content Strategy at Hermès: Between Tradition and Innovation

Introduction

I have spent over four decades studying business strategies. But I must say that the story of Hermès remains one of the most fascinating in the business world. By chance, just as I was about to write this article, I learned that the French luxury group Hermès had overtaken its rival, the French luxury giant LVMH, becoming the first market capitalization at the close of the CAC 40, the benchmark index of the Paris Stock Exchange. Today, Hermès has become the most valuable luxury company in the world, with a market capitalization of €248.60 billion. No other luxury house has managed to maintain such an aura of exclusivity while generating billions, thanks to a unique and effective content strategy. We will examine the secrets of this extraordinary success in this publication.

From Parisian Stables to Global Luxury Summit

The story of Hermès begins in 1837 when Thierry Hermès, an orphaned craftsman fleeing the Napoleonic wars, opens a modest harness workshop in Paris. At that time, France was in the midst of the industrial revolution, and equestrian equipment was essential for the rising aristocracy and bourgeoisie. Quickly, Hermès’ exceptional leather craftsmanship attracted a prestigious clientele, notably the French aristocracy and even Empress Eugénie, wife of Napoleon III.

What distinguished Hermès from the outset was this obsession with artisanal perfection. I remember visiting their workshops in 1987 for an economic report. The craftsman who welcomed me had been working on the same bag for three days, each stitch meticulously executed. « We don’t make products, we make heirlooms, » he confided in me. This philosophy spans generations and remains at the heart of Hermès’ content strategy.

The transition to modern luxury accelerated under Charles-Émile Hermès, son of the founder. Observing the rise of the automobile in the early 20th century, he concluded that the traditional business focused on equestrian equipment was at risk of disappearing. A trip to the United States changed everything: he discovered the zipper on a military vehicle and obtained its exclusivity for France.

This ability to adapt to technological upheavals has always impressed me. In my first school supplies company, I often faced innovations that threatened our model. Like Hermès, I learned that survival depends less on attachment to the past than on the ability to reinvent one’s know-how.

The Icons that Built the Empire

The success of Hermès is based on a few creations that have become legendary. Under the direction of Robert Dumas, son-in-law of Émile Hermès, three emblematic accessories that still define the house’s image today were born: the silk square, inspired by military handkerchiefs; the Chaîne d’Ancre bracelet, whose shapes recall the anchor chains of boats; and the H belt.

But the real turning point came in the 1980s when Jean-Louis Dumas took the reins of a house on the brink of collapse. Rather than giving in to the siren call of mass production, he made a bold bet by elevating Hermès to the pinnacle of luxury, focusing on artisanal excellence and rarity, and integrating these values into the brand’s content strategy.

A chance encounter with Jane Birkin on a plane gave birth to the most coveted bag in the world. What few know is that each Birkin is made by a single craftsman, from the first to the last stitch, requiring between 18 and 25 hours of work. In the world of mass production that I have known, this approach seems anachronistic. But it is precisely what makes its value.

Iconic Hermès Products Include:

• The Kelly bag, made famous by Grace Kelly in 1956

• The silk square, produced in over 2,000 different designs since 1937

• The Chaîne d’Ancre bracelet, a symbol of elegance since 1938

• The H belt, a must-have accessory since the 1950s

• The Birkin bag, created in 1984 and now sold for between €9,000 and €500,000

Recent Innovations and Adaptations

Hermès continues to innovate and adapt to new trends. The brand has recently invested in digital technology, launching innovative e-commerce platforms and sustainable development initiatives. For example, Hermès has implemented recycling and repair programs for its products, thus strengthening its commitment to sustainability.

The Battle Against the Cashmere Wolf

In October 2010, a storm hit the house of Hermès. Bernard Arnault, CEO of LVMH, nicknamed the « cashmere wolf, » announced that he had secretly acquired 17% of Hermès’ capital. This hostile operation, dubbed « Mercure, » had been meticulously planned since 2001 by exploiting the flaws in the financial system.

Faced with this existential threat, the Hermès family, divided into more than 70 heirs, achieved a miracle of unity. In December 2011, 51 members created H51, a holding company locking up 50% of the capital for 20 years. This colossal financial sacrifice (€8 billion immobilized) saved the house’s independence.

I have witnessed several takeover attempts during my career. None have shown as much determination as the fierce resistance of the Hermès heirs against the LVMH empire. This battle perfectly illustrates how family values can override immediate financial interests.

After an investigation by the AMF, LVMH was fined €8 million and forced to sell its shares. Ironically, Bernard Arnault pocketed €3.4 billion in profits thanks to the appreciation of the stock between 2010 and 2014. The war between the two giants continues today in a more subtle way, notably in the race for strategic commercial locations.

Comparison with Other Luxury Houses

Compared to other luxury houses like Chanel or Gucci, Hermès stands out for its attachment to craftsmanship and rarity. While Chanel focuses on massive advertising campaigns and celebrity collaborations, Hermès prefers to cultivate a discreet and exclusive image. This difference is visible in their content strategy, where Hermès favors authentic storytelling and refined visuals.

The Last Bastion of Authentic Luxury

In 2024, Hermès posted impressive results: €15.2 billion in revenue (+15%) and €4.6 billion in profits. Its market capitalization is approaching €300 billion, close to LVMH (€350 billion) despite a portfolio of 75 brands compared to just one for Hermès.

Hermès’ economic model defies all the rules of modern marketing:

• Strict control of production, creating artificial scarcity

• Almost total absence of advertising

• Exclusive distribution through its own boutiques

• Exceptional operating margin (40% compared to 22% for LVMH)

• Hermès’ content strategy transforms the act of purchasing into a privilege. In my recent netlinking startup, we studied this model to understand how to create value through scarcity rather than volume. The lesson is clear: sometimes, selling less can bring more.

Cultural Impact

Hermès has a significant cultural impact. The brand is perceived as a symbol of luxury and sophistication worldwide. Its products are often seen as works of art, and the brand influences fashion and design through its timeless creations.

Current Content Strategy

Hermès’ current content strategy is based on an omnichannel approach, integrating digital platforms and social networks to engage its audience. The brand uses high-quality visuals and authentic storytelling, reinforcing its image of luxury and exclusivity. For example, Hermès uses Instagram and TikTok to share videos and images of its workshops, highlighting the craftsmanship of its artisans.

Lessons from Hermès for SME Leaders

The story of Hermès offers valuable lessons for SME leaders seeking to build a sustainable and prosperous brand. Here are some key takeaways:

1. Betting on Excellence and Authenticity

Hermès has built its reputation on artisanal excellence and the authenticity of its products. For SMEs, this means that investing in quality and authenticity can create lasting value, even in the face of larger competitors.

        2. Adaptation and Innovation

Hermès’ ability to adapt to technological changes and new trends is a model to follow. SMEs must remain agile and ready to innovate to survive and thrive in an ever-changing environment.

       3. Effective Content Strategy

Hermès uses a content strategy that highlights its know-how and values. SMEs can leverage digital platforms to tell their story, engage their audience, and strengthen their brand image.

      4. Valuing Rarity and Exclusivity

By creating artificial scarcity and strictly controlling production, Hermès has transformed the act of purchasing into a privilege. SMEs can apply this principle by focusing on unique products or services that stand out from the competition.

     5. Customer Engagement and Loyalty

Hermès has built customer loyalty through exceptional service and attention to detail. For SMEs, this means that customer engagement and personalization of the shopping experience are essential for building a loyal customer base.

      6. Long-Term Vision

Hermès has always favored a long-term vision over short-term gains. SMEs should adopt a similar perspective, investing in sustainable strategies that promote long-term growth.

By integrating these lessons into their own strategy, SME leaders can ensure their survival and prosperity in a competitive market, creating a strong and resilient brand