French luxury brand Hermes is considering investing in Italian fashion and shoe subcontractors that it already works with, as part of its strategy to strengthen its supply chains. Eric du Halgouet, the executive vice president finance of Hermes, stated that the company is exploring the possibility of vertical integration and partnerships with suppliers that meet their quality standards. This move aligns with the trend of luxury groups in France, including Kering and LVMH, who have been expanding their control over production by reinforcing their presence in various sectors such as eyewear. In contrast, Italian fashion groups, known for their independence, are now starting to collaborate to safeguard their local supply chains.
While most of Hermes’ production facilities are located in France, the company recognizes the exceptional expertise of select Italian suppliers in the areas of shoes and clothing. Hermes may leverage these suppliers to strengthen its capabilities. Du Halgouet mentioned that potential investments could involve minority or majority stakes or the establishment of dedicated sites for Hermes products. Despite these potential investments, Hermes does not foresee any production limitations in the coming years, as it prudently manages its leather goods production and gradually expands its workshops in France. Through these investments, Hermes aims to solidify its position in the luxury fashion industry and enhance its supply chain capabilities.
Useful links:
– Hermes Might Invest in Italian Clothiers to Secure Its Supplies
– Hermes Mulls Investments in Italian Fashion Supply Chain
