Birkin bag maker Hermès expands manufacturing with new French workshop
Hermès says its 16th leather goods workshop, located close to the city of Mulhouse, will eventually house 260 specialists trained to handcraft a bag from start to finish
French luxury handbag maker Hermès has opened a new manufacturing plant in eastern France, as rivals such as LVMH’s Louis Vuitton also expand leather goods production to keep up with thriving Chinese demand.
Hermès, known for its squared silk scarves and its hand-stitched US$10,000 Kelly or Birkin bags, trades off its “Made in France” appeal and is famed for attracting long waiting lists.
Like its luxury peers, Hermes benefited from strong appetite from Asian shoppers in 2017, lifting its sales and profits to record levels.
In the fourth quarter, sales growth slowed slightly from the previous three months, however, as stocks of its handbags ran low.
Hermes, originally a saddle and equestrian equipment maker, said its 16th leather goods workshop, located in the country not far from the city of Mulhouse, would eventually house 260 specialists trained to handcraft a bag from start to finish.
Vuitton is also expanding its leather goods production with at least two new domestic workshops this year and next.
