After experiencing a 10.4 percent sales growth in 2018, reaching nearly $6.8 billion, Hermès announces that it is expanding into the world of skincare and cosmetics, Business of Fashion reports. The collections, which are expected to launch in 2020, will be developed by the French luxury house and manufactured by third-party suppliers in France and Italy.
“Obviously, we hope to have the biggest scope possible. We are trying to do it humbly and cautiously, because it’s a big market that’s already full of strong players, and therefore we have to find our place in it,” Hermès chief executive Axel Dumas said this week. “It’s quite exciting: It’s a new activity, with all the risks that involves, so we will deploy it progressively, initially in our own stores mainly, in a limited distribution so that we can learn.”
Business of Fashion points out that the majority of the top luxury brands already offer skincare and makeup products, as Gucci is also planning to enter the sector. Hermès already sells fragrances, with the category having increased in sales nine percent in 2018.
Industry insiders note that beauty is a prime opportunity for brands to recruit new customers and offer products at a lower price point. Hermès, who is expected to use plastic-free packaging for its skincare and cosmetics, of course hopes this holds true.
For more on the luxury house’s foray into skincare and cosmetics, visit Business of Fashion.
- Source: Business of Fashion