It's reassuring to know that while we may be in the midst of one of the worst economic downturns since WWII, French luxury brand Hermes is set to expand its production of petite maroquinerie (small leather goods) including its iconic handbags. In order to meet demand for its products (which rose by a healthy 14 per cent in 2008), Hermes has announced plans to ramp up production at its MHM (Manufacture de Haute Maroquinerie) plant in Aix-les-Bains in the Savoie region of France.
MHM, a leather goods manufacturing plant previously owned by Groupe Richemont, was acquired by Hermes in early 2006. Hermes' proposed expansion will create an estimated 86 additional jobs by 2011. Amidst all the doom and gloom that seems to be spewing from virtually every media outlet known the man, I find this news very comforting. More importantly, it tends to lend credence to the belief that the very top end of the luxury market will not only survive but thrive in the midst of the current downturn. Hope springs eternal.
Sincerely,
The Luxe Chronicles
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