Featured image credit: By Gryffindor – Own work, Public Domain, https://commons.wikimedia.org/w/index.php?curid=785265

What Do Horse Saddles and Handbags Have in Common?

Would you believe that some of the world’s most coveted handbags share their origins with 19th-century horse saddles? At first glance, equestrian gear and high fashion seem worlds apart, yet they both demand impeccable craftsmanship, durability, and timeless appeal.

Few luxury brands embody this connection as deeply as Hermès, the French fashion house that started as a saddle-making workshop and evolved into an empire of elegance. At the heart of this transformation is the Dumas family, whose vision and leadership have ensured Hermès remains one of the most respected and exclusive brands in the world. But how did a family business, founded in 1837, manage to thrive for nearly two centuries while so many others faded into history?

This article explores the legacy, business philosophy, and key factors behind Hermès’ enduring success under the Dumas family’s stewardship.

---

The Origins: A Heritage of Craftsmanship

In 1837, Thierry Hermès, a skilled harness maker, opened a workshop in Paris, crafting high-quality saddles and bridles for European nobility. His dedication to precision and durability quickly earned Hermès a reputation for excellence.

However, as the world transitioned from horse-drawn carriages to automobiles in the early 20th century, the company faced a crucial decision: evolve or become obsolete. This is where Émile-Maurice Hermès, Thierry’s grandson, played a pivotal role. Recognizing the need to diversify, he expanded Hermès into luxury leather goods, introducing handbags, accessories, and eventually, the silk scarves and ties that would become synonymous with the brand.

By the mid-20th century, Hermès was well established, but its transformation into a global powerhouse came under the leadership of the Dumas family, particularly Jean-Louis Dumas, who took over as chairman in 1978.

---

The Key Factors Behind Hermès’ Success

1. Commitment to Craftsmanship: The Science of Luxury

Hermès products are not just luxury items; they are a masterclass in craftsmanship. The Birkin bag, for example, takes between 18 and 25 hours to make, with each bag crafted by a single artisan from start to finish. This approach is rooted in scientific principles of material durability, hand-eye coordination, and precise motor skills, ensuring that every stitch, cut, and polish is executed to perfection.

A study on consumer psychology shows that perceived value increases when customers understand the time and expertise behind a product. This helps explain why Hermès’ “handmade, not mass-produced” ethos allows it to command some of the highest resale values in the luxury market.

---

2. Scarcity and Exclusivity: Why Waiting Lists Work

Unlike many fashion brands that chase mass production, Hermès thrives on controlled supply. The company intentionally limits the production of its most sought-after items, such as the Birkin and Kelly bags. This creates an aura of exclusivity—customers cannot simply walk into a store and buy one; they must either be “offered” the opportunity or join a years-long waiting list.

This scarcity strategy taps into behavioral economics, where limited availability increases perceived desirability. Studies have shown that when products are difficult to obtain, people are willing to pay more and value them higher. In 2023, for instance, some Hermès Birkins resold for over $100,000, far exceeding their retail price.

---

3. Family Leadership and Long-Term Vision

The Dumas family has ensured that Hermès remains a family-controlled business, resisting pressures from corporate takeovers. When luxury conglomerate LVMH (headed by Bernard Arnault) attempted a hostile takeover in the early 2010s, the Dumas family fought back, securing over 50% ownership and protecting Hermès from being absorbed into a mass-market luxury model.

Why does this matter? Family-run businesses often prioritize long-term strategy over short-term profits, ensuring that quality and brand integrity remain intact. Unlike some competitors that expand aggressively at the expense of exclusivity, Hermès focuses on sustainable growth, maintaining its identity as an ultra-luxury brand.

---

4. Timeless Design Over Fast Fashion

While many fashion houses churn out new designs every season, Hermès follows a different philosophy: create timeless pieces that never go out of style. The Birkin, first introduced in 1984, has barely changed in design yet remains a cultural icon.

This approach aligns with sustainability trends—in a world where fast fashion contributes significantly to waste, Hermès’ model of high-quality, long-lasting pieces stands in contrast. Scientific research on consumer behavior shows that luxury buyers prefer classic designs that retain their value over time, which is precisely what Hermès offers.

---

5. Expanding Beyond Leather: Silk, Watches, and Beyond

While Hermès is best known for leather goods, it has successfully expanded into silk scarves, perfumes, watches, and home decor. Each new category maintains the same commitment to craftsmanship—for instance, Hermès silk scarves are printed using traditional techniques, with some requiring up to 40 screen-printing steps to achieve the brand’s signature vibrancy.

This diversification ensures Hermès remains financially resilient, allowing it to weather economic downturns better than brands that rely too heavily on a single product category.

---

Challenges and the Future of Hermès

While Hermès has mastered exclusivity, its greatest challenge may be maintaining it in an era of rapid luxury expansion. With growing demand from China, the U.S., and the Middle East, balancing growth while preserving the brand’s artisanal heritage will be crucial.

Additionally, the rise of the resale market means Hermès products circulate beyond their official distribution channels, sometimes at inflated prices. How will the brand navigate this? By doubling down on controlled distribution, Hermès continues to limit who can access new products, keeping the allure intact.

With Axel Dumas (a sixth-generation family member) currently at the helm, Hermès remains steadfast in its philosophy: quality over quantity, tradition over trends, and exclusivity over mass appeal.

---

A Family Legacy That Defines Luxury

Few brands have managed to balance heritage and modernity as seamlessly as Hermès. From its origins in equestrian leather to its dominance in high fashion, the company’s success lies in craftsmanship, exclusivity, family control, and a timeless vision.

Would Hermès still be the ultimate symbol of luxury without the Dumas family’s leadership? Perhaps. But would it maintain the same level of artistry and mystique? That’s a question only time—and careful strategy—can answer.

Share Your Insights

What do you think makes Hermès so timeless? Share your thoughts in the comments!

• What sets Hermès apart from other luxury brands?
• Do you prefer timeless fashion or trendy pieces? Why?
• How important is family leadership in maintaining a brand’s legacy?