The Extraordinary King of Luxury Fashion
ฝัง
- เผยแพร่เมื่อ 7 มิ.ย. 2024
- To outsiders, luxury fashion is a curious industry where consumers seem to irrationally shell out hundreds and thousands of dollars for sneakers, handbags, wallets, or T-shirts. But take a step inside, and you’ll find the world of high fashion is more like Game of Thrones with Italian, English, and French houses like Gucci, Louis Vuitton, YSL, and Balenciaga fighting to be the king. For the houses that get to sit on the throne, they don’t last for long.
A brand who only sells its products to a carefully curated list of only its highest spending customers, takes no preorders, refuses to expand inventory, or scale production. A brand whose products are so elusive that they appreciate thousands of dollars and are often resold for profit. A brand that does not allow returns, refunds, or exchanges. A brand who has remained independent, manufactures by hand, spends the least on marketing, and yet grosses close to what Gucci makes every year.
That brand is Hermès and they are the current king in high fashion. Hermès operates their business with a playbook and style that no other brand can even come close to emulating.
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🎧 Audio Editing & Mixing: Sonalf
Chapters:
0:00 Playbook of High Fashion Leaders
4:28 YSL's Traditionalist Approach
5:30 Moncler's Small Player Resurgence
6:10 The Magic of Hermès
7:35 Tradition & Craftsmanship Above All
9:18 Expensive, Elusive, and Exclusive
10:15 A True Test of Loyalty
Chapters:
0:00 Intro
2:00 Standard Playbook of High Fashion Leaders
2:43 Gucci's Rocketship Growth
4:28 YSL's Traditionalist Approach
5:30 Moncler's Small Player Resurgence
6:10 The Magic of Hermès
7:35 Tradition & Craftsmanship Above All
9:18 Expensive, Elusive, and Exclusive
10:15 A True Test of Loyalty
If you prefer reading over watching, the written transcript of this episode is available here: medium.com/@modernmba/h%C3%A8rmes-the-modest-king-of-luxury-fashion-d128b87be499
I like the lack of music in the videos really suits your channel.
Hermès was the first luxury brand to sell online. The availability to the public is better than other brands. You are conflating their items for sale with the Birkin. Anyone can purchase online and also make an appointment at a boutique. The exclusivity only happens with their purses.
exactly. thought i may just be the way their brand operates, birkins are still a big deal
later they changed and became a courier
No it wasn't...Gucci under Tom Ford sold online when internet was still dial up.
@@jonnyfendi2003 So you assume Hermès didn't do this too?
@@R.N.19 They werent the "first" though
FYI Tory Burch not Tony Burch and Christian Louboutin makes the “red bottoms” not Louis Vuitton.
Came to the comments just to say this.
And givenchy is pronounced waaay differently
And it’s Rosé not rOse
Good catch, I didn't even notice.
Lol
Fun fact, If you send in your Hermes bag to be repaired, The same person who made the bag, will repair it. The artisan who makes the bag, has their stamp somewhere inside the bag. It is in a different spot depending on which style bag you have.
This is not true. Though it can go back to the same person for repair it is very unlikely that the same person who made the bag will be the one repairing it.
Why? This seems horribly inefficient. Hermes is not capable of training multiple personnel to fix bags? We don't have machines that can fix bags?
@@wyw201 The reason people buy these bags are because they’re made by hand. If a machine made Birkins or Kelly’s you’d be able to tell. The bags go to a Hermès repair shop in France, sometimes, though rare, they end up in the hands of the person who made the bag.
@@joed7525 What are the specific differences between a bag made by machine and a bag made by hand?
@@wyw201 stitching for one. The hand can do stiching patterns that machine simply cannot.
Along with a lot of other things that require intricate details.
Ironically, you can buy Hermes Fragrances from any fragrance retailer and even many discounters. It’s interesting how different their models are for hand bags and clothing versus their perfumes which are like any of the other designers
They do it because perfumes are a cheap way for people to buy into a brand and feel like they own a part of that high end brand
The Hermes strategy is very similar to one of luxury watch makers like Rolex and elite car manufacturers like Ferrari
Or like me. I make cutting boards and they're so exclusive I have yet to sell one.
@@sparsparkster5997 🤣🤣🤣🤣
People love getting cucked
Patek Philipe not Rolex lol. Rolex is machine made
Ferrari takes it to a pretty ridiculous level. You literally have to buy a couple of “starter” Ferraris just to get on Maranello’s radar, and they judge your public appearances and profession from what I heard to be granted an invitation to purchase a limited release.
I appreciate (from what I’ve seen at least) Hermès maintaining the high quality of their bags. I went window shopping on the Burberry website and they had $3000 coats with polyester which just seams disappointing. Don’t get me wrong I’d understand if it was a rain jacket or something similar but a wool pea coat?
Tell me you know nothing about materials without telling me you know nothing about materials 😆 polyester is not about being cheap, that's not the only reason why they use it. It's also much more sustainable since you recycle it infinite times unlike cotton which is just burned or very hardly and rarely recycled into something else than clothes at the end. It has also different properties, like for example it doesn't absorb sweat as natural fibers or it's easier to create various shapes. Just because something has polyester , doesn't mean it's a bad product at all. Man made fibers are the best thing we have for sustainability. No natural fiber can be infinite times (theoretically) recycled. So depending on the vision behind the product, the polyester might fit better than other materials. It doesn't have to be only about cheaping out on something...
a wool pea coat can't be made from polyester ur probably mixing it with a polyamide/wool mix which is usally mostly wool 80/20. The polyamide doesn't make it worse or better it's just a fabric mix to make the garment either look a certain way or probably in this case more durable. High fashion usually uses advanced textile technology which to a not familiar person who reads poly/nylon and thinks cheap or bad quality but in reality in high fashion its not the case because it's a means to enhance the material.
@@Lucifer0022 Yeah, you know absolutely nothing about materials...💀Please do not again try to educate people before educating yourself properly...
Polyester can't be recycled infinite times. It is potentially toxic to the environment by shedding microplastics and to you by leaching estrogenic and similar chemicals that are often used in the production of specialty polyester, to be more durable, water-wicking, etc.
Polyester in itself is sweat inducing and makes you smell horrible, everybody can attest to that. To make polyester without these drawback you must use specialty polyester (which is unneeded if you use merino-blend tees), so your tech-fabric gym shirt is likely harmful for you.
It is incredible cheap to produce, thanks to China building and industry around it, so 99% of use cases are to cut costs or boost subpar materials durability, handfeel, etc. Such as the case for short staple length cotton and polyester blends. Better choices for lining fabrics instead of polyester are naturally-sourced cellulose based fibers such as cupro (bemberg), viscose/rayon and lyocell.
Man-made fibers are not the best thing for sustainability, far from it, the incredible cost of R&D and such would make breakthrough fabrics initially expensive plus the additional patenting of technologies preventing wide scale adoption and use, the case of lyocell. Natural fibers by contrast are already undergoing such changes already as they are agricultural products.
Man-made fibers are prone to marketing, such as Gore-Tex, which is still uses potentially toxic ePTFE, a teflon fabric, in most of its jackets even after the promise of stoping it, or the lie that it is breathable AND water-resistant, instead of breathable OR water-resistant as it should be by the simple logic of osmosis, while the natural solution is ventile or a bit of wax on canvas!
So just STFU! 💩
Loving the quality of these videos. 👍🏽
i love these videos. thanks for creating
Reminds me, my Chinese friend (owns 5 properties and 2022 Mercedes) walks into Rolex the other day, tries on a Daytona $40,000 AUD, says she wants it and they say "sorry you don't have enough Rolex points for this watch" she walked out empty-handed.
Having 5 properties for example in the UK is quite common now, especially for the middle class. Having a Mercedes’, even something high powered is a dime a dozen. Every other 18 year-old drives a brand new A/ C class (or bmw/audi) in west London.
@@gagz117 so are they all able to go into Rolex with those 5 properties in the UK and also ask for the Rolex Daytona or are they not on the level?
@@dlc85007 sadly we are not on the level…with Rolex and many other brands it’s really not about how much money you have but rather how much you spend (regularly) and kiss ass. And the Daytona is an invitation only model. I’ve heard that you need to have spend upwards of something crazy like £200k for a steel daytona.
@@dlc85007 There's a big difference between owning 5 small or ordinary houses, 5 large detached houses or 5 apartment blocks (which can have anything from 10-20+ units each). Just saying someone owns a property gives very little info.
@@tonyatthebeach I was trying to paint the picture of how she's rich but I guess the 6 properties she has now doesn't cut it for some people as I thought it obviously would. Anyway she's rich, tried to buy a Rolex Daytona, and got shut down because not enough Rolex points
Crazy underappreciated video. Hopefully the Algo will give you flowers
Came via the algorithm. Great video, subscribed.
I live in an area where you never really see luxury stuff out and about, but I visited Los Angeles and San Diego a month ago and was floored by how prevalent they are in these areas. Everywhere you go, you see the red and green anything, the Louis Vuitton handbag, the ysl purses. It's interesting to learn about the history of how flaunting logos goes in and out of style with the times. We really are in an upswing of it now I guess.
I thought we were in a downswing but then again I live in a blue collar town
Those logos are a fantastic way of telling if somebody is a vapid idiot from a distance.
come to New York you see the same thing...except they are all bootleg worn by people who take the bus and subway drenched in Chanel and Gucci logos.
@@jonnyfendi2003 was just in boston and was shocked by number of college students on the subway or at the airport with Gucci sneakers
@@jonnyfendi2003 Maybe in America all people wear Gucci and LV and takes buses are Poor, 😏 but here in UK I know many Well Off People who use public transport because it’s hard to get parking in central London, they leave their cars at home.
Really impressive video, thank you! Please make more research like this!
Incredible. This channel is great!
Hey man, I’m a big fan of your videos, but I think you should do a little more diligence on this particular topic for a cleaner video - I’m by no means a fashion expert but a couple of things from the first few min:
-coach and Tory Burch are “lower end” fashion that never competed with high fashion, so the segment is a little different
-Givenchy pronunciation is quite off
-you can also touch on gucci/balanciaga/etc lowering price points for branding w/youth (more sales of lower priced items like caps, slippers, accessories, vs handbags)
-you can touch on the concept of Veblen goods + Hermes capturing consumer surplus (utility of having a birkin vs. price paid for that bag) by having them effectively pay for it by buying other less desirable things
Will add more notes as I watch, keep up the good work - one of my favorite new channels!!
Fantastic combination of sense for sustainable consumer business concepts and numbers. Aside from growing this channel (which will undoubtedly happen), I would also recommend you start your own consumer business.
Christian Louboutin make the red bottom high heels, excellent video either way :)
I’m here to support,I think I might all business channels on here keep posting
Love those videos !
I liked and subscribed !
Goos stuff !
The video is great but the pronunciation is sendinggg me 😂 especially when he said Rosé
just subscribed. binge watching all your videos :)
Very well researched. One small detail - Hermès accepts returns for store credit but doesn’t refund. You can also deny any offer. You will get more offers if you actually like the items the brand offers.
Hope the channel grows, you clearly spend a lot of time on these!
Actually If you buy online you can return for a full refund!
@@tototha7717 probably talking about bag returns. They dont sell their bags online so understandable that would accept online refunds
@@ElizaArika that’s not true. Hermes sell many bags online. They don’t sell Kelly, Birkin, or Constance online but many their bags they do sell online. I bought and return a Herbag for full refund
I love this stuff, pls do more
Fascinating video and business model!
wow. mind blowing. keep these videos coming.
“Gevenchy” 💀
Honestly? I like Hermes's approach to making stuff.
Is it way over priced? Heck yeah. But man its kind of neat that it's all hand made by one person.
if you're spending that kinda of money you kinda want it to be hand-made by a single master craftsperson. i mean nowaday what kinda of stuff do you get to say that about? its huuge brag rights for rich people and they know it!
Wow a handmade bag. Wowie! That’s a giant step for humanity.
It’s a fraud and people are dumb, narcissistic, insecure and rich lowlifes enough to support it
@@Brurgh if you are rich, do you need hermes?
This is hilariously underrated channel. Love it, don't stop.
I think it's fascinating that the only brands similar to Hermes in terms of their appreciating value and ruthless markups are haute horologie - Patek Phillippe, Audemars Piguet, and Vacheron Constantin.
There's also Rolex which is a different can of words but also is the hypebeast par excellence, its "waitlist" policies are very similar to Hermes.
Ferrari also does this.
Audemars Piguet is not at this level even part of the Saint Trinity
Crazy good content!
Amazing info! Thanks
The quality of these videos is not reflected in the follower count at all! I did my part in subscribing but this channel has got to blow up soon
Great videos!!!
Fantastic videos!!
The pay to make those bags must be incredible for anyone to go through that much trouble.
theres still way to much money going to the top of that chain. The rest of these companies churning out mass-produced "luxury" clothes are a joke. It disgusts me how many people who are barely making enough money to live are convinced by this scam.
Randomly came across your Casper video, never really thought about watching videos about business but your videos are very well made and really interesting!
I hope this channel takes off, but either way, I'm subbed and excited to watch all your videos :) awesome job!
I'm a socialist at heart so probably not your target demographic but I want to better understand modern capitalism and business.
I think it's a real blindspot for many people, and I'm always open to new information - my political views are always evolving and whether I'm a socialist or capitalist, we live in a capitalist world and I want to understand it.
Your videos are a great introduction for someone with no real business knowledge, I really appreciate them!
Thank you for the kind words and support! Love your perspective - I intentionally don't target any audience and keep any politics out of my own content. Economics is how most war is waged these days (i.e international response to Russia's invasion of Ukraine). Corporate America is ruthless, violent, and companies are always coming up with strategies to stay ahead.
This channel's audience seems to be a mix between day traders looking to understand a company enough to "invest" in it, company fans/enthusiasts/haters, or just the curious. I genuinely hope to foster that diversity organically and look forward to your future comments.
Same! Casper drew me in and now I’m starting from the top!
Interesting work from the youtube algorithm. Also got served Casper and wanted to learn about Hermes haha. Earned a sub :)
Amen to r-pupz… and great work MMBA
I watched your Casper video and thought you were a well-established channel with millions of subs. I really enjoy your videos. Wish there were more of them. I subbed, I look forward to your future uploads.
felt the exact same way!
I really love your taste and style always so chic. My faves would be the kkuwan leather backpack and the Swarovski pave diamond ring so gorg. Thank you for your recommendations.
Good video mate.
0:43 It's Christian Louboutin... not Louis Vuitton
It's all about exclusivity. The harder it is to produce or obtain something, the more valuable it is. I used to be one of these doofs who couldn't comprehend why someone would spend $3000 dls on a Burberry trench or $1800 on a Gucci clutch but as I've gotten older and started purchasing luxury items and realizing how well they retain their value and the air of sophistication they produce I get it now. There's nothing wrong with wanting/buying nice things. Just be careful not to let it put you in debt to do so.
Your videos are amazing, you’ll definitely explode in popularity soon! Keep up the good work!
Hermes operates sorta like Ferrari, you have to earn the ability to buy the exclusive products through brand loyalty
Great video series - I found it very informative.
BTW, the brand that makes iconic red-bottom stilettos is Louboutin, not Louis Vuitton.
I was looking for this comment. Most guys are not going to know that until they have had the right, or the wrong, kind of girlfriend
@@Laotzu.Goldbug he also said Tony Burch, god love him.
@@vanitymarks8798 did Tory transition?
haha
@@vanitymarks8798 honestly, knowing that Modern MBA is just some dude with with a business degree and male pattern baldness butchering up luxury brand names is kind of funny and made his business analysis more credible in a way. It's like, I want my CPA to be an expert in accounting, not fine wines, you know?
From 0.58 to 1.54 time - that room with the outside background from where ?
Does anyone know what campaign is playing in the bg from 0:58 ?
these videos are incredible! keep up the great work!
From all High Fashion brands, the ones that I like the most are Coach, Loewe and Hermes, stores like Gucci, Prada, LV, etc, just look tacky and of very bad taste to me, for good and for worse I cannot afford something from the brands I like (other than my nice Coach backpack), but going to the stores is always a pleasure.
I appreciate that Hermes doesn't go brand logo crazy like the others, focus on design, and that they are supporting artisans.
This may be unique in the world of fashion or even commerce but is common in the gaming world - gacha systems and grinding. From the perspective of human psychology, they are tapping into a slightly different emotional mechanism/reward system.
Atleast with Hermes when your “forced” to buy the bag, you can just sell it for profit
Man, your videos are some of the most interesting, thoroughly researched and eye opening videos on TH-cam. You’re doing amazing and your channel is going to continue to grow without question
"thoroughly researched" yet no sources and is clearly oblivious to the world of fashion
Im sorry red bottomed Louis Vuitton’s? Smaller labels like Moncler AND Balenciaga?
i think versace has seen a resurgence as of late , with valentinos pink collection bold colorful dressing is back and versace does this well
See you at a million subs!
decent video. however, i think you wording could be clearer. it is actually possible to purchase hermes products and bags online. in fact, they were one of the first high fashion houses to operate an online store. what cannot be purchased online is their hermes birkin, kelly and constance bags.
No refund policy is illegal in many countries, Like in my country Kuwait 🇰🇼 “ Oil Gulf Country “ , Hermes can’t say shit about the no-refund policy or the entire store would be closed for a single complaint.. and I’ve heard many countries have the same policies by law .
It's also illegal in France, so idk what they're smoking
Great video:) I had no idea Hèrmes was so profitable. I can’t wait to see more:3
My favs
Christian Dior
Givenchy
My Man Louie Baton out here killin it. 👠
this video is incredibly interesting and well done. lots of data and clear explainations
Thanks for the video! One suggestion is that the shaking and sped up frames make it a little nauseating to watch. Otherwise, great narration!
In the the times when money supply grows every year, but time supply stays the same - time is what Hermes chooses to charge for it’s handbags.
That’s what makes their products an ultimate flex - not everyone can spend so much time.
Nice video
I’ve never really be able to wrap my head around the high-end luxury products…particularly for those that aren’t super wealthy. The only reason to spend that kind of money for those protects is to show them off….that’s probably why I don’t get it. Who cares what people think of your shoes or purse? You can get amazing quality products for a fraction of the price; the only difference is a logo on the side. It all sounds foolish if you don’t have so much money, that you light it on fire just to get rid of it.
People spend money they don’t have on things they don’t need to impress people they don’t like.
It’s a new money thing. Tacky logos or well known silhouettes stuff to show off. Old money tastes are more humble lol
Some of it is cultural too or maybe a symptom of the current or yesteryear generation but people have loved to represent a lifestyle, brand or product for a long, long time because as humans that how we identify our tribe (people with common ideals, passions and so on)
I find it odd since it's not like a lot of these things are exactly good looking truly fashionable pieces either, most are wildly impractical unless you simply just walk around and set some things down and even from a functional perspective most are pretty much useless.
All I know is I see far more people wearing all these gawdy awful, expensive stuff with no fashion sense or style because that's something you can't buy...or a lot of people wearing it hoping to come across as affluent but aren't.
It's status projection, nothing more. Humans that cant get past the biologically inherited hierarchy structures. Even if it's just in their heads
That's what these companies massive advertising budget is for. Billions of dollars are spent targeting peoples psychology and inadequacies to trick them into believing that purchasing an overpriced item will solve all their problems.
Maybe a jewelry & luxury commodities version?
The Gucci Mickey Mouse collaboration was one of the best things ever.
It's the Ferrari approach
Exactly my thoughts. I was looking for a comment like this. Hermes seems to have copied Ferrari's playbook not just taken a page out of it.
Oooof now I wanna make my own Hermés clothes in their workshops... I would even pay them for it :P if I had the money lol
Ferrari had the same exclusive approach of limited production for loyal customers first, but they changed tack.
I would never say "nobody will be ever able to replicate" though
This whole video felt like an advertisement on hermes🥴. I liked your Facebook piece tho
This is very similar to Rolex and other luxury watch brands; “waitlist” and pressure selling before desirable models are even hinted at.
Stupidity of over-consumerism culture at its finest
I love COACH always have always will.
You've got some great content here mate, loved the DTC one. As a suggestion it would be useful if you would add references to some of your datapoints.
The problem is the trend is people are now looking at Hermes as being tacky
Can you discuss Chanel?
resale online of the high end products is practically impossible. Hermès, LV and other have teams of people scouring EBay, Amazon and other sites looking for stuff on the secondary market. You will get blacklisted by the manufacturer. They also enforce quotas on purchasers for the iconic products: Hermès will not sell you multiple Birkins
Unprecedented, except for loot boxes in video games haha
From the packaging to the details of the bags, I think the KKUWAN shop has made reproduction an art form.
“Tony Burch” oh god
Hermes is just taking a similar business approach to premium watch brands like Rolex and similar. This model also tracks with supercars.
Hand-crafted items like bags, shoes, and hats are literally the only high fashion thats remotely comparable to things like watches and supercars. The rest of the mass produced crap these companies pump out to dumb people who think it will impress anybody with more than 3 brain cells is not.
What an interesting business model, I don't know any other industry that would do that.
1:18 I love the brand “Gevenchi”, whatever that brand is.
The Hermes model has precedence with Rolex and Ferrari as the best examples. They do the exact same thing.
Really interesting video! Luxury goods are such an alien world to me, but I guess I understand why some people assume it's worth it in a "quality over quantity" sense. I'd be more forgiving if I didn't find most of it so boring or even ugly. Gucci green might legitimately be my least favorite color on the planet, and I think it looks even worse paired with that garish red.
rich people interpret that feeling of disgust as being unique
@@XSpamDragonX exactly, most are clueless twats anyway
Fully agree, Gucci is heavily overrated garbage.
Interesting that Hermes can still mass produce leather bands for Apple.
Love Hermès
Sorry but these minor mistakes let me know that you don't know high fashion. How in the world do you called Red Bottoms "Iconic Louis Vuitton shoes". I had to rewind the video to make sure I heard that right. Tighten up!
Christian Louboutin makes the red bottom shoes not Louis Vuitton, and Givenchy is pronounced Ji-Von-She.
Besides that, good video.
GIVE EN CHI😂 the pronunciation, for the most part this vid was great though.
can y'all clarify something did he say "Tony Burch"
Hermes: the Scientology of the fashion world 🤭
“ along with Louis Vuitton’s timeless red bottom stilettos “ Christian Louboutin** babes how you making a whole video and not know that 😫
Who cares
Did you just Given-chi Givenchy?
Hermés has a waiting list for the Kelly and Birkin.
i remember we walked through the hermes at lax a few years ago and thought: when is everyone gonna start framing an hermes scarf on their walls?
and we already had a birkin bag craze in the 00s. then came the logo prints
Great video. Car companies like Ferrari and Porsche employ a similar loyalty system to gain access to limited production models. Those models also typically sell for over msrp on secondary market.
Old rich people love having to get permission to buy the thing they truly want
I'm not sure what you're talking about website well the stuff is available on the website
I shop at Hermes. You can exchange. I bought a bracelet for a friend and she exchanged it for a different colour. Also, you pronounced Givenchy wrong.
He pronouced Hermes also lol
10:11 it’s a leather bag inside a fabric bag, inside wrapping paper, inside a cardboard box, inside a plastic bag, which probably arrived inside another cardboard box. Also the store is a box.
It's important to properly pack these bags for transport and storage to retain the shape and quality of leather. Even after you purchase one, you should be storing it in the dust bag and box if you aren't going to use it for a while. If taken care of, your bag is almost guaranteed to appreciate in value.
I feel that gen z and millenials are used interchangeably in this video
I agree, especially when talking about YSL and kpop
“At Gucci there’s something for everyone” -nope, not really. Never appealing for ones with a more sober taste. And even their “classic” items have been absorbed by the insta-influencer crowd, which excludes other shoppers. A successful but dangerous strategy, because the brand is almost equated now with new money and tacky fashion.
disagree. from the little i know, they seem to be innovating more than any other company by actually listening to what the people want. it may be tacky to you, but i call it pushing the boundaries and being creative. the new must replace the old eventually
@@alandeutsch9987 how? slapping your logo on cheaply made crap won't stand the test of time. If anything it'll be a race to the bottom and whatever they stood up will no longer be relevant.
People don't know what they want, Gucci is ugly, tacky and will not age gracefully or well beyond this era and will become some bargin bin brand or if I'm being slightly positive something like a Lacoste (started off high quality and is now just cheaper made items trying to milk their heritage, brand, logo and name)
@@alandeutsch9987 I disagree, the ability to stand the test of time is what old money desires