Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management, Part 6 Managing Financial Resources.

Description:  For decades, fashionistas have known that a Birkin bag is a safe style bet — if you can get your hands on one. That demand makes its producer, Hermes International SCA, the surest bet in the luxury industry when it comes to sales growth.

Source:  Bloomberg.com

Date: Feb 11, 2013

Link: http://www.bloomberg.com/news/2013-02-10/hermes-10-000-birkin-purse-seen-leading-to-record-sales-retail.html

Questions for Discussions:

  • Summarize the financial perfomance of Hermes in recent years.
  • What explains this success?
  • Would you expect this trend to continue for the near future?
  • How would competitors be expected to respond in the marketplace?
  • Who is the customer for this category of product?
  • What do you think motivates their buying behavior?
  • Would you be a buyer of the stock?

 

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