Forget a Birkin, buy a silk pop instead

Q&A: Christian Blanckaert, executive vice president, Hermes

Christian Blanckaert, executive vice president, Hermes, shows Anoothi Vishal some innovative product lines that the company has brought out during this period of recession.

How has the luxury biz been affected by the crisis?
It would be totally wrong to say that the recession has not hit luxury. But there has been no globalisation in the kind of impact we’ve had across countries. If there has been catastrophe in Japan, other countries, in Europe for instance, have resisted. In France we (Hermes) grew by 6 per cent last year.

You opened your store in Delhi in the middle of the recession. Has it lived up to your expectations?
We are here only to observe. The market is very small but we are here for 160 years. We have a long time to go. India is a very difficult country but we are satisfied and plan to go to Mumbai and Bangalore too.

 

What are the most popular product categories in India?
If people make impulse buys, we are happy. Of course, if they buy a big bag we are very happy. People can buy scarves or ties or perfumes. The baby line also has potential. It is very popular with our customers abroad (shows a soft leather shoe for a newborn, Rs 14,000) and one of the fastest growing. In India too, we hope that people will pick these up (shows a silver gift item) as gifts.

Why will people buy your products here when they can buy them cheaper abroad?
Our strategy is to appeal to the local buyer. But we keep the same ranges everywhere and the latest is available in India. People may not want to wait till they make their next trip abroad to buy even if the price difference is 10-15 per cent. In Paris, around Christmas, 90 per cent of our customers are locals. In India, on Diwali, we hope it’ll be the same.

You’ve talked of innovation during recession. What are some interesting products?
Instead of 90x90 cm scarves, we’ve introduced 70x70 cm made in Lyon. There are bandanas (Rs 6,900) and jewellery fusing metal with silk. Then, see this silk pop (with a leather base), this is something that you can easily pick up even if you are not buying a big bag from us.