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Hermès CEO on Metaverse: “Could be a good communications tool”

Posted On April 20, 2022 CPP-LUXURY 0

Hermès is considering using the metaverse for communications although the maker of Birkin bags and other luxury goods remains focused on craftsmanship, Executive Chairman Axel Dumas told shareholders on Wednesday. “We are curious and interested” about the metaverse, he said, adding it could be a good communications tool.

At Wednesday’s annual shareholder meeting, executives signalled plans to maintain a long-term view for production and other strategies, after family shareholders voted to block 54% of Hermes capital, held by the holding company H51, until at least 2041.

Digital commerce has become second nature for Hermès International, which boasts that 78 percent of customers at its online store are new to the brand. Dumas added “For the time being, we’re interested to see how this world evolves and changes.” Dumas noted that it “could conceivably” offer Hermès a “great means of communications” in the future — and in its quirky fashion.

“But this is not a priority of ours,” he stressed. “We’re mainly interested to learn and to monitor, rather than rush into the metaverse.” Hermès is a company rooted in physical objects, human creativity and exceptional craftsmanship, screening countless videos of its artisans caressing, cutting and stitching its coveted leather goods in light, airy workshops set in the picturesque French countryside. “We still devote 15 hours to making each handbag,” Dumas declared proudly.

Looking ahead, Hermès plans to continue to increase its production capacity, especially in leather goods, and expand its retail network. Major openings planned for this year include New York City, Shanghai, Strasbourg, Barcelona and Doha. “Our stores are all unique places,” Dumas asserted, explaining that its boutique buyers are fully empowered to tailor product assortments to local tastes and needs. The French firm ended 2021 with 303 boutiques in the world, having added or expanded locations in cities including Detroit, Tokyo, Macau and Shenzhen.

In February this year, Hermes sued a digital artist for knocking off its Birkin handbag through the issuance of MetaBirkin non-fungible tokens (“NFT”). For those not aware of the filing or related media attention, the artist created fuzzy images of the Hermes Birkin handbag and minted them as NFTs.