China sales vital to Hermès

Strong European fashion brands like Hermès are becoming more and more dependent on sales in countries like China. The Asia Pacific region accounts for about 35 per cent of all worldwide sales of Hermès bags, scarves, leather goods and other fashion products.  

According to a report by Jing Daily, the Paris-based fashion house struggled to meet the demand for its iconic handbags, particularly in China, during some months of 2017. 

Hermès’ half-year results show that the China-U.S. trade war did not have a clear effect on on sales. Hermès reported a net profit increase of 17 percent year-on-year to €708 million. Sales in Asia (excluding Japan) in the first half of 2018 increased 7.4 percent to €1.072 billion, with revenue in the region growing 8.6 percent year-on-year in the second quarter. 

In a press release, the company stated that “Asia, excluding Japan, continued its outstanding performance, with positive momentum in continental China and the whole region.” In 2018, Hermès opened new stores in Hong Kong and Changsha, Hunan Province; it also opened its 25th store in China in Xi’an. The company is launching a Chinese-language website. 

Further reading on jingdaily.com 

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