Bertrand Michaud announces the launch of Maison Hermes, an investment affirming Hong Kong as the fashion capital of the region

The company is expanding its existing boutique to create a magnificent Maison Hermes, the fourth in the world. The HK$190 million (US$24.4 million) investment involves the purchase of three more shops in the Galleria in Central, which will be knocked into one to create the new store.

According to managing director for Hermes Greater China, Bertrand Michaud, the move is an expression of faith in the company's own future and, more particularly, in the future of Hong Kong.

"We know that Hong Kong people are very conscious of quality and love to shop for luxury goods," he said. "We do not believe the present economic difficulty will last, and we still see Hong Kong as a vital fashion centre for Asia and a strategic gateway to China."

The expanded premises will focus on Hermes ready-to-wear collections, with a strong presence of 12 other lines including leather, shoes, silk products, watches, perfumes and accessories. Work on the project will begin shortly and is scheduled for competion in late 2004.

The company has a boutique in Beijing and opened a second one in Shanghai in 2001. A third boutique in China will be opened this December in Guangzhou, all three being in rented premises.
  
"We are cautious about going into China," Mr Michaud said. "Like an old horse, we like to know where we are putting our feet. It is not to make money that we are there, it is to make a statement that 'we want to live with you, to be part of the community'."

In China clothes, shoes and leather accessories for men sell much better than those for women, Mr Michaud said.  Bags and shoes are still the hottest selling items, just as in Hong Kong. "I cannot tell you yet when and where but it is the logical development to open more boutiques eventually all over China," he said.
 
Mr Michaud stressed that there has been no drop in Hermes sales in the area in recent years despite economic fluctuations. In Asian countries, apart from Japan, sales growth overall was 3 per cent despite a decline in tourism in 2002. Sales in Japan rose by 17%. China remains a bright spot, showing a steady increase.

Related link:
Hermes www.hermes.com