Hermes vs LVMH

Recently, Hermès has surpassed LVMH in market cap (€249B vs. €244B), signaling a shift in brand value dynamics. From a marketing lens, here’s some insights:

👜 Product:

Hermès’ focus on exclusive, handcrafted icons like the Birkin bag creates unmatched desirability, with 55% in-house production ensuring quality. LVMH’s 75+ brands offer breadth but less singular prestige.
💰 Pricing:

Hermès’ ultra-premium pricing reinforces its elite status, appealing to the ultra-wealthy. LVMH’s varied pricing broadens reach but may dilute exclusivity.

📢 Promotion:

Hermès thrives on subtle, word-of-mouth allure and artistic client events, enhancing scarcity. LVMH leverages bold campaigns, celebrity creative directors, influencers and KOLs for wider engagement.

📱 Media:

Hermès has a selective and focused storytelling of heritage builds loyalty, while LVMH’s innovative campaigns and celebrity endorsements keep it relevant to younger audiences.

In an economic downturn or trade war, Hermès’ exclusivity offers resilience, while LVMH’s global scale faces challenges.

Both redefine luxury with different strategic directions, but Hermès’ focus on rarity is winning hearts—and valuations, for now. 🆙