Hermes’ clever transformation: beyond the era of ‘ownership’ to the era of ‘experience’ > News

Hermes’ DDP exhibition ‘Mystery at the Grooms’ clearly shows that the paradigm of luxury marketing has shifted from ‘one-way display’ to ‘two-way communication’. Instead of simply appreciating the bags on display, visitors become detectives tracking down the secrets of the stables and learn firsthand the history of ‘horse gear,’ the foundation of the brand. This strategy, which removes the price tag of the product and replaces it with the brand's philosophy and craftsmanship, makes consumers perceive Hermes not as a 'thing' but as a 'culture they want to experience'. The phenomenon of pre-orders being sold out and long waiting lines proving how much consumers now crave the process of immersing themselves in and sharing the brand's worldview. This type of experiential marketing is evaluated as a much more effective investment in increasing loyalty and intimacy with the brand rather than increasing short-term sales.

While offline immersive experiences are being strengthened, the expansion of luxury beauty accessibility through digital platforms is also a notable change. CJ OnStyle established over 70 premium beauty brands, including Hermes Perfume, in the ‘Lux Beauty Hall’, proving that online shopping is no longer centered on low-priced products. In particular, we used a content commerce tool called live commerce to convey our brand heritage, and even expensive serums and devices were sold out. This suggests that consumers are willing to consume expensive luxury goods in a mobile environment based on the trust guaranteed by official importers. The high per-unit price and loyalty of the premium customer base presented a challenge for the distribution platform to go beyond a simple sales outlet and become a curation platform that represents the value of the brand.

Such actions by luxury brands are also reflected in the keyword ‘transparency’ even in highly technical areas such as watchmaking. The skeleton watch lineup introduced by Hermes maximizes technical completeness and formative beauty by exposing the internal mechanism to the outside. Unlike before, when only the splendor of the exterior was emphasized, the internal structure and operating principles of the product are now incorporated into the brand identity. This means that when purchasing products, consumers have a stronger tendency to go beyond just the brand and also consume technological value and the sweat of craftsmen. Ultimately, brands gain the trust of consumers by clearly showing them, ‘I am a brand with this technology and philosophy,’ and are deeply embedded in their lives.

The value of luxury goods is now expanding its influence by becoming an icon in our daily lives. The sight of world-renowned CEO Jensen Huang wearing Hermes sneakers or a Dior jacket at official events shows that modern luxury is no longer a solemn attire, but has become ‘part of a lifestyle’ encompassing business and daily life. This phenomenon means that luxury goods are moving away from the perception that they are the exclusive property of a certain class and are being widely used as a means of self-expression and a symbol of success. Brands are now faced with the challenge of consistently conveying their brand identity to consumers across all touchpoints, including experiential exhibitions, digital platforms, and everyday fashion items. As consumers' tastes become more fragmented, brands need to capture their hearts with more sophisticated and diverse strategies.