The second-most valuable luxury brand in the world is Hermès, worth $218 billion
Hermès, which makes Birkin bags, is doing well in a time of economic uncertainty. With a market value beyond what it has ever experienced before, the luxury brand just became the world’s second most valuable in the luxury market behind LVMH.
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According to Bloomberg, the luxury brand surpassed the market value of €200 billion ($218 billion) this week, surpassing Swiss pharma giant Novartis AG by over 20 percent. As a result of investor confidence in the high-end market’s continued success, the luxury brand has performed exceptionally well in 2023, rallying approximately 30 percent so far.
As China’s economy has recovered following the pandemic, Hermès has seen its market value surge. The company now ranks eighth on the pan-European Stix 600 index, and it is the second most valuable luxury brand in the world. LVMH Moet Hennessy Louis Vuitton SE, which is currently worth €420 billion (about $455 billion), is the second most valuable luxury brand in the world. Bernard Arnaut’s fortune in LVMH also rose to $200 billion after this achievement.
Robb Report’s view of Hermès Birkin bags at Christie’s during Luxury Week
Its high demand for handbags and unparalleled pricing power have made Hermès stand out from other luxury brands. In rarer models, Birkins can cost over $400,000, with prices starting at about $8,500. The Hermès leather manufacturing facility in Louviers, Normandy, will open on Friday due to the high demand it has sustained.
In addition to Hermès’ outstanding performance, the luxury market as a whole has seen heightened performance post-Covid, with Burberry and Hugo Boss AG also experiencing growth. Having outpaced London’s previous top spot in Europe’s stock market due to the growth of luxury stocks, Paris has taken the top spot as the country’s premier stock market.
In spite of economic turmoil, Hermès International’s market value is now more than €200 billion, confirming the company’s position as a powerhouse in luxury and demonstrating the enduring appeal of high-end designer brands.
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EURO 200 BILLION EUR MARK IS SURPASSED BY HERMES INTERNATIONAL
As a company and as a luxury sector as a whole, Hermes International’s milestone is a significant achievement. Its success is due to many factors, including its ability to adapt to changing consumer preferences, its commitment to quality and exclusivity, as well as the market’s resilience.
Investments and consumers alike will be closely watching Hermes International as the industry evolves.
There are several factors that have contributed to Hermes International’s success in recent years. China is a major emerging market that is driving high-end luxury goods demand.
In addition, luxury brands have seen their market dynamics and consumer preferences change.
This achievement demonstrates Hermes International’s ability to innovate and create value for its shareholders by exceeding the 200 billion EUR market value mark. In addition, it demonstrates the appeal of luxury products to consumers and the strength of the luxury market.
Hermes International’s change in rank may not directly impact the luxury market, but it is an important milestone for the company and reflects the wider growth and resilience of the industry.