Hermès plans to launch skincare and cosmetics ranges in 2020. The collections are being developed in-house but will be manufactured by third-party suppliers, mainly in France and Italy.
This is a new challenge for the brand, which saw sales grow by 10.4 % in 2018 to reach nearly €6 billion.
Like Gucci, Hermès already competes in the fragrance segment; its perfume business grew 9 % in 2018, thanks to the success of Terre d’Hermès, a woody scent, and the floral Twilly d’Hermès. Fragrances made up 5 % of the company’s overall sales in 2018, or €315 million.
To become a great global beauty brand, Hermès needs three axes, Dumas said: skincare, makeup and fragrance. For its skincare and cosmetics products, Hermès plans to use plastic-free packaging, BoF has learned.
“Beauty is a great product category because it allows a low price point without diluting the brand perception. It’s also a category in which you can recruit new customers, it creates digital engagement and permits to sustain additional communication investment which is beneficial for the overall brand equity of the maison,” said luxury analyst Mario Ortelli.