Hermès cut the equine-embossed ribbon on its newest leather goods factory on Friday, just days after its market cap soared past the 200 billion euro mark.
division and equity investments, said the production of the popular Kelly depends on several factors and couldn’t quantify how many bags the Louviers facility will add to the tight supply.
De Seynes added that Hermès is hiring hundreds of people per year, but that it takes 18 months of training before an artisan hits the factory floor. “We are trying to increase the production, but we want to maintain the approach to quality that is for us absolutely essential,” he said. There are around 4,700 artisans in leather goods production at its various facilities in France, he added.
The factory sits on four hectares previously occupied by Philips, which had remained a brown site slated for environmental cleanup before it could be repurposed. Fournier told WWD that the company is starting out with a lower carbon footprint than the other luxury groups due to its craftsmanship model. Hermès produces 78 percent of its products in France, and 65 percent are in made within its own workshops. Most other facilities are in close countries, with watches in Switzerland, for example.
The company is finishing an extension of its silk facility in Lyon, which is now slated for opening in July. It is also expanding watchmaking capacity in Switzerland, while continuing to invest in tanneries and increase leather goods production. “We are looking at the process of increasing future capacities in every field — which is a good problem, but it is a problem,” De Seynes said of demand continuing to outpace supply.
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