One of the reasons that Hermes seems to thrive where other luxury brands falter is that the brand has always eschewed 'masstige' -- luxury aimed at the masses. While other brands have expanded and then discounted, Hermes has held on to a fine snobbery that has served it well even in the recession. That strategy isn't set to change. The Financial Times recently talked with Patrick Thomas the CEO of the luxury brand who has said the brand has held off on expanding as fast as they could because they don't want to squander the legacy of the company's history. Thomas refers to it as a "capital sin" to use the image of the company to try and make short term money.

The company has made some accommodations to deal with the growing demand for their products. Over the last 20 years the brand has expanded its cadre of artisans from around 300 to over 2,000 but they still can't keep up with the demand for the popular Birkin bags beloved of celebrities and the wealthy including Victoria Beckham, shown at right. Thomas also cleared up the rumor that Hermes might be investing in jewelry brand Asprey after picking up their London store. Thomas insists that the company was only after the prime real estate, not the company within.

Luxury jewelry and accessories brand Asprey commands an enviable corner of Bond Street in London and now it looks like that property will have a new name over the door. The Observer reports that Hermès will buy the building and may buy the entire Asprey business. Hermès will purchase the building from Quinlan Private run by Derek Quinlan. Reportedly Hermès beat Chanel to the store.

In a challenging luxury market, Hermès has continued to shine posting profits at a time when most other brands are wrestling with deep losses. The same can't be said for Asprey which has struggled recently and had two consecutive loss-making years with sales dropping from £17 million to £13 million. For the most part Hermès hasn't been in the acquisitions business, choosing to expand modestly and focus on their strengths but Asprey does have the kind of history and tradition that might appeal to Hermès.

The Observer speculates that the sale might provide a much-needed cash infusion for Derek Quinlan, whose portfolio has taken a deep in the past year or so. He is divesting himself of a lot of his property portfolio and has moved to Switzerland. The Asprey store sale could bring him as much as £25 million.

We've written before about the allure of vintage luggage, expressing the glamour and decadence of a bygone era when journeying to a foreign land involved adventure, romance and style. While certain pieces do turn up at auction from time to time, the Germany-based Vintage Luggage Company has now amassed the world's greatest collection of classic travel items made by the likes of Louis Vuitton, Hermès and Goyard, which they can have professionally crated and shipped worldwide. Among the prizes in their inventory are an amazing selection of bespoke trunks, including a 1920s Vuitton desk trunk which converts to a writing table complete with a typewriter. Another trunk from 1925 houses a full set of plates, cutlery and cooking equipment, each with its own bespoke leather case. Others contain a long evening's worth of champagne, a complete collection of hats, a portable library - pretty much anything you could wish for while on the road.

[via Duncan Quinn]

The last few years brought a flurry of yacht and luxury brand partnerships. Now we are starting to see the output from these collaborations. Hermes and Wally are showing off a model of a 38-meter-wide yacht the WHY 58x38 (it is 58 meters long by 38 meters wide), which was presented in Ancona, Italy. Obviously this is no ordinary sleek vessel but we'd expect nothing less than mad innovation from Wally.

The yacht has 25-meter interior swimming pool, three decks and a 36-meter "beach" along the back. The large solar panels covering the roof and sides of the vessel could save at least 200 tons of diesel fuel a year. The design of the hull means that the yacht uses less power at cruising speed than another boat of equal size. It has a diesel-electric propulsion system and the solar panels power most of the boat's auxiliary system needs. In a press release, Pierre-Alexis Dumas, Artistic Director of Hermès said: "The WHY 58X38 yacht looks very unfamiliar but it remains on a human scale. Space is the greatest luxury on the sea, but I believe the new luxury will be the time to enjoy it."

Adding just a new color to the Arceau Chronograph watch lineup with the "Ebony," and Hermes almost has you convinced you've got a totally new model. This is follow up watch to the Arceau Chronograph Alezan announced around Baselworld earlier this year. To Hermes, the Arceau line is direct extension of their equestrian heritage, making for a perfect companion to their full line of riding gear.

Hermes watches are finely designed in my opinion with flowing smooth lines and a refinement on par with other luxury watches with the names of exclusive French designers on them (Chanel, Louis Vuitton, etc...). The Arceau Ebony Chronograph has an almost totally black colored dial on the 43mm wide steel watch. Applied rings around the chronograph dials add a sense of depth to the mix, while the classic looking Arabic numerals have a character undeniably Hermes. The face is simple and clean, and Hermes could not resist adding the splash of their signature orange hue to the face to complete the branded look. I like the faceted window cut for the date window.

You get the distinct idea that the case shape is extremely smooth and pleasant to wear. Note the different lug structure at either end of the watch. Powering the timepiece is a Swiss ETA 2894 automatic movement. There is really nothing superfluous about the design, a fact that pleases me. Of course the watch would not be an Hermes if not fitted with a high grade calf leather strap, here in black with contrast stitching. Available soon from Hermes.

Ariel Adams publishes the luxury watch review site aBlogtoRead.com.

Could fashion designer Jean Paul Gaultier be out at Hermès? Fashion Week Daily reports that the designer may be resigning from the company after the Paris show in October. Gaultier produces his own collections of ready-to-wear and haute couture and has been the creative director at Hermès for six years. Gaultier has continued to bring excitement and status to the luxury brand whether he's bringing us a luxury version of the cowboy look, aviator chic or traditional Hollywood glamour. If he's out at Hermès those are some big shoes to fill.

For Only Watch 2009 French luxury goods house Hermès has come out with something a bit different than all the unique wristwatches on offer: a beautiful table clock finished in the world's finest saddle-stitched burgundy alligator skin, over several layers of leather. The 1930s-inspired clock has a stainless steel chassis measuring 175 mm high by 150 mm wide and 37 mm thick, with an easel back also covered in saddle-stitched alligator. It features black nickel indexes and hands, and comes in a red lacquer case. The clock's movement is a Swiss mechanical 8 day power reserve caliber 51 with 15 jewels, beating at 18,000 bph.

The titans of luxury in New York, Paris, London, Tokyo, and Dubai have spoken, and their mood is, generally, upbeat. The Reuters Global Luxury Summit, which started yesterday and ends tomorrow, is a three-day blitz of interviews with chief executives and chairmen of Hermes, Burberry, Tiffany and Co., Rolls-Royce, Montblanc, Chopard, Estee Lauder, and Saks, to name a few.

Here are some highlights:

• Designer Jonathan Adler, says his mandate for the Christmas season is "irresistable giftables. "I hope that when you walk into my store you will feel like you're in a crack-den of adorableness." As for how his business is faring in the recession: "I think that my design aesthetic is probably the right design aesthetic for right now," he told Reuters. "I've always called my design philosophy happy chic, and it is about creating design that is chic, luxurious, and I hope beautiful, but adding an element of levity and irreverence that I think makes people feel good. And probably in these grim economic times, the element of happiness is resonating with consumers."
• The new Rolls-Royce Ghost model, to be available in September, may help double the carmaker's annual sales. The projection is based on the 1,500 deposits already received for the Ghost.
• Hermes is breeding crocodiles on its own farms, mainly in Australia, to keep up with demand for its exotic-skin $50,000 handbags, because, as Hermes chief executive, Patrick Thomas, put it, "The world is not full of crocodiles, except the stock exchange!" [Meanwhile, Louisiana alligator farms are struggling.]
• Classical styles for handbags are winning out over "it" bags, according to Burberry chief executive Angela Ahrendts. "They (shoppers) want them to last. They want to be able to psychologically know they can carry them for the next couple of years and no one will know how old it is."
• Montblanc is planning to open four boutiques in Saudi Arabia this year. Pens account for about half of total sales since the company has diversified into watches and fine jewelry.
• Chopard has seen sales drop 15-20 percent this year, but is hoping a recovery will level off the sales drop to just 10 percent. "We already feel a little bit of a comeback," Chopard's chairman, Karl Scheufele, said.
• Juicy Couture is increasing the number of products sold for $200 and less to adjust to the recession, Juicy Couture's president, Edgar Huber said.
• Sales of traditional Japanese doll sets, costing from $2,000 to $50,000, have held in the recession.
  

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Every season it seems the European fashion houses try to outdo each other with one incredibly decadent item of men's clothing; despite the recession it seems this year is no different. We've seen Salvatore Ferragamo's $250,000 crocodile trench coat and Hermès' $150,000 crocodile pea coat; now here's an alligator officer's jacket from Louis Vuitton's Fall/Winter 2009/10 collection recently shown in Paris. Louis Vuitton mens design director Paul Helbers described the collection as inspired by "the traveling wardrobe of an African king." The jacket has not been priced yet is expected to sell for somewhere in the $50,000 - $75,000 range, and will probably only be available by special order.

[via JustLuxe]

Despite the burgeoning recession Hermès is opening a new store in East Hampton this summer, but the French luxury goods firm is hedging its bets and the shop will shut its doors come September 20. "We have 22 of our own boutiques in the U.S. - East Hampton will be 22 and a half," Hermès President and CEO Robert Chavez tells the East Hampton Star. He said the company had been eyeing a Hamptons location for a while but that a permanent location just doesn't make sense these days.

"We just weren't ready to commit to a long-term lease," he notes, "knowing that obviously the key selling period is in the summer months when most people are there." Most Hamptons retailers are doing the same this season. The Hermès pop up boutique has a more casual feel, is painted a crisp white and features displays of scarves, handbags, neckties, housewares, bathing suits and beach towels. There's also an equestrian section featuring a one-of-a-kind white leather saddle, "price available upon request."

The world's first $6 million Hermès helicopter, designed by the famed French fashion house in conjunction with Eurocopter, has been delivered to Falcon Aviation Services in Abu Dhabi. Back in 2007 my colleague Deidre Woollard reported on the announcement of the ultra-luxurious chopper, dubbed the "l'Hélicoptère par Hermès," though no price was quoted at the time. Unsurprisingly, the oil rich emirate has snapped up the first of the craft, based on Eurocopter's EC135 model and done in brown and cream livery with signature Hermès orange accents.

The cabin of the helicopter was completely redesigned by Hermès Interior and Design - who also created a custom Rolls-Royce for the Four Seasons George V in Paris we wrote about last year - to maximize the available space and make it as luxurious as possible. Hermès' classic canvas "Toile H" was used to cover the cockpit while the handcrafted seats and banquette are upholstered in natural-grained Hermès calf leather. A sliding glass partition separates the passenger compartment and cockpit, enhancing privacy while allowing light to enter.

"We are delighted to be the first customer for 'l'Hélicoptère par Hermès', which gives us the opportunity to offer a unique travelling experience to our customers" FAS's Vice Chairman Salem Al Kayoumi stated. "This helicopter illustrates a successful fusion between design and technology, where every detail has been created for VIP and business travellers. They are busy and highly demanding, yet wish to travel with utmost comfort and elegance."

French industrial designer Alexandre Fourn has come up with an amazing electronic Hermès agenda concept that could herald a new age of luxury goods. The Hermès Contre-Temps employs futuristic flexible OLED touchscreen and e-paper technology to expand from a pocket-sized device to a full-size diary when needed. It features all the bells and whistles of an iPhone including an electronic organizer, photo sharing, email, GPS, an RSS reader and more. It even has signature Hermès saddle-stitched orange leather inserts. Hermès should definitely hire this guy.

In a Classicist column last summer we reminisced about the the golden age of motoring when one would embark on an automobile journey with elegant picnic and cocktails cases carefully stowed in the boot of the car. On May 19th we'll get another glimpse into the bygone era of traveling in true style when Christie's London South Kensington branch auctions off an amazing selection of vintage Hermès, Louis Vuitton and Dunhill luggage. With the favorable exchange rates currently in effect it's an enticing opportunity to build a collection with lasting value, while truly timeless luxury items are more appealing than ever.

"Harking back to a golden age of travel, vintage luggage encapsulates the glamor and decadence of a bygone era when journeying to a foreign land involved adventure, romance and style," notes Christie's' Director of Textiles Pat Frost. "These exquisitely crafted pieces evoke a time when the journey was as important as the destination. With iconic names including Louis Vuitton, Dunhill and Hermes leading the field and remaining very collectible they not only functional but design objects in their own right."

Highlights of the sale include two cream colored canvas and leather suitcases by Hermès from the mid-20th century, monogrammed "APW", estimated at about $2,200 - $3,000; two fine black cases by Dunhill and T. Anthony, the first of black leather in semi-circular form with one fitted tray and gunmetal hardware, the second of black fabric with leather strapping, lined in moire with various pockets and gilt hardware, est. at about $1,200 - $1,500; and a monogram hard-side case and cover by Louis Vuitton (above) with a beautiful patina to the the leather handle, est. at about $900 - $1,200.

Some luxury brands may not be doing well but Hermes is still doing a brisk business in Birkin bags. Its reported profit beat analysts' estimates and the French brand even raised its dividend. The company's net income for 2008 rose less to 290.2 million euros beating an estimate of 287.5 million euros which was the estimate by 12 analysts compiled by Bloomberg News. It will pay a dividend of 1.03 euros a share versus last year's 1 euro.

While most stores have had a rough start to the new year, Hermes found that sales in the company's own stores rose in January and February. The confident CEO Patrick Thomas told Bloomberg that the company won't change its strategy and plans to continue opening new stores.

It's been a challenge to predict which luxury brands will do well. Some such as LVMH, the owner of Louis Vuitton and PPR, the owner of Gucci have both seen the luxury market remain solid but Bulgari saw a huge drop. Hermes has expanded less rapidly than some brands but it has maintained its prestige level.

The $1.5 million Bugatti Veyron may already be the most super of supercars, but it's also been the subject of countless special editions designed to up the ante even further. The ultra-exclusive models we've seen include the Pur Sang, Sang Noir and Hermes editions, as well as one-offs like the Mansory Vincero. Now reports have surfaced that Bugatti will unveil a new Veyron limited edition called the Centenaire 'Bleu' in celebration of Bugatti's 100th anniversary at this month's Geneva Motor Show. The Centenaire could produce up to 1,400 hp with a top speed around 275 mph to help the Veyron recapture the world's fastest production car title. Carbon fiber could be used to reduce weight and up the speed quotient.