Hermès International
Luxury Goods and FashionFounded 1837- Updated June 2025
Reviewed by Swet Parvadiya
Last reviewed: June 2025
CorpDigest
Hermès International
Company History
Founded 1837 in Paris, France
Last reviewed: 2025-06-05 · By Swet Parvadiya
It is a story of how a company that originally made harnesses for the carriages of the French nobility managed to reinvent itself for the automobile age, the jet-set era, and the digital revolution, all while maintaining the exact same commitment to quality and exclusivity that defined its founding. Hermès International is a French luxury goods manufacturer and retailer, founded in 1837 by Thierry Hermès, renowned for its leather goods, equestrian equipment, ready-to-wear, silk scarves, watches, jewelry, and perfumes. The house does not merely assemble products; it owns the very origins of its raw materials. Founded in 1837 by Thierry Hermès as a harness workshop for the Parisian nobility, the company has survived the transition from the equestrian age to the automobile era, two world wars, and the relentless consolidation of the luxury industry into massive conglomerates, emerging as the most financially resilient and culturally revered luxury institution in the world.
This discipline, rooted in the historic equestrian codes of its founder, ensures that the brand remains not just a fashion label, but a cultural institution and a financial powerhouse. The company's success is also evidence of the enduring power of the founder's vision. By owning the origins of its raw materials, the house guarantees that its products will always possess the unparalleled quality and craftsmanship that define the brand. The origin of the enterprise is inextricably linked to the dusty, bustling streets of nineteenth-century Paris, a city in the midst of a profound social and industrial transformation, where Thierry Hermès opened his first workshop in 1837.
The creation of the Haut à Courroies, originally designed to carry a rider's saddle, was gradually adapted into a smaller, more elegant form for women, laying the groundwork for the iconic Kelly bag. The Kelly bag, originally known as the Sac à dépêches, gained international fame in 1956 when Grace Kelly, the Princess of Monaco, used it to shield her pregnancy from the paparazzi, an image that was immortalized on the cover of Life magazine and forever linked the bag to the epitome of elegance and royalty. The origin story is not just a tale of creative triumph; it is a narrative of survival, adaptation, and the relentless pursuit of a singular vision. The origin story continues to inspire and inform the creative direction of the house, serving as a constant reminder of the humble beginnings and the revolutionary spirit that founded the empire.
The origin story is the foundation upon which the entire empire is built, evidence of the power of a singular vision to transform the world, one stitch at a time.
Thierry Hermès is the patriarch of one of the most valuable and culturally revered luxury institutions in the world. His early life as a craftsman in the bustling, equestrian-centric Paris of the nineteenth century laid the groundwork for a brand that would eventually transcend its utilitarian origins to become the ultimate symbol of global wealth and exclusivity. He fundamentally understood that the quality of the leather and the precision of the stitching were not merely functional requirements, but the very essence of the product's value. This commitment to absolute quality and functional elegance was passed down through generations, guiding the company's miraculous evolution from a harness workshop for the nobility to a global powerhouse of leather goods, silk, and ready-to-wear. Despite the company's dramatic shift in product categories over the centuries, the spirit of Thierry Hermès remains the guiding light, ensuring that every product, from a multi-thousand-dollar handbag to a simple silk scarf, is created with the same uncompromising dedication to craftsmanship that defined his original workshop. His legacy is not just in the harnesses he designed; it is in the enduring philosophy of quality that continues to define the brand and inspire generations of artisans. The story of Thierry Hermès demonstrates the power of determination, creativity, and the relentless pursuit of perfection. From the dusty workshops of nineteenth-century Paris to the gleaming flagship boutiques of the twenty-first century, his journey is a remarkable tale of survival, resilience, and triumph. He transformed his personal dedication to craft into a universal standard of luxury, creating a brand that resonates with consumers nearly two centuries later. His ability to alchemize simple leather into timeless elegance is the hallmark of his genius, and it is the foundation upon which the entire empire is built. The legacy of Thierry Hermès is a shining example of the transformative potential of craftsmanship and the enduring power of a singular vision to change the world.
Thierry Hermès opens his first workshop on the Grands Boulevards in Paris, specializing in the creation of the finest harnesses, bridles, and reins for the carriages of the European nobility. This modest beginning laid the foundation for what would become the most exclusive and financially successful luxury house in the world, establishing the core values of craftsmanship and quality.
The house wins the first-class medal at the Universal Exhibition in Paris for its exceptional harnesses and bridles, cementing its reputation as the premier equestrian craftsman in Europe. This early recognition validated the founder's uncompromising commitment to quality and established the brand's prestige among the global elite.
Under the leadership of Émile Hermès, the house introduces its first leather handbags, inspired by the need for practical, elegant accessories for the new era of the automobile. This pivotal moment marked the beginning of the company's transition from a pure equestrian supplier to a broader luxury goods manufacturer, laying the groundwork for its future dominance.
The house introduces the Sac à dépêches, a sleek, leather handbag that would later be renamed the Kelly bag after Grace Kelly was photographed using it to shield her pregnancy in 1956. This iconic design would become one of the most coveted and valuable objects in the history of fashion, defining the modern era of the house.
To celebrate the company's centennial, the house introduces its first silk scarf, the 'Jeu des Omnibus et Dames Blanches', printed on silk sourced from the finest producers in Asia. The carré would become a global phenomenon, serving as the accessible entry point to the brand and a highly profitable cash cow that subsidizes the artisanal leather goods.
Following a chance encounter on a flight between CEO Jean-Louis Dumas and the actress Jane Birkin, the house creates the Birkin bag, a spacious, unstructured leather bag designed for the modern, active woman. The Birkin would eventually surpass the Kelly in popularity and value, becoming the ultimate symbol of ultra-luxury and scarcity.
The house acquires two of the finest, historic tanneries in France, securing its supply of the highest quality calfskin and exotic leathers. This strategic masterstroke ensured absolute control over the raw materials, creating an insurmountable barrier to entry for competitors and guaranteeing the quality of its core products.
The house reports record revenue of approximately fifteen point six billion dollars, with an operating margin exceeding forty percent, driven by overwhelming global demand for its leather goods. This financial milestone validates the radical strategy of artisanal scarcity and vertical integration, proving the enduring power of the business model.
The house acquired the historic Tanneries du Puy in France, one of the premier processors of calfskin and exotic leathers in the world. The acquisition was a strategic masterstroke designed to secure the supply of the highest quality raw materials, ensuring absolute control over the quality, traceability, and ethical sourcing of the leather used in its iconic handbags. By internalizing the tanning process, the house guaranteed that its products would always possess the unparalleled quality that defines the brand.
The house acquired the Tanneries d'Annonay, another historic French tannery renowned for its exceptional vegetable-tanned leathers and its close relationship with the house for decades. The acquisition was driven by the need to secure the supply of the specific, high-quality leathers required for the iconic Kelly and Birkin bags, and to prevent the tannery's expertise from being acquired by a competitor. The move was a critical step in the house's long-term strategy of absolute vertical integration.
The house acquired a majority stake in Heng Long Leather, a Singapore-based company that is one of the world's premier processors of exotic leathers, particularly crocodile and alligator. The acquisition was a strategic move to secure the supply of the rarest, highest quality exotic skins, and to ensure absolute control over the traceability and ethical sourcing of these controversial materials. By owning the exotic leather processor, the house guaranteed that its products would meet the highest standards of animal welfare and quality.
The house acquired a minority stake in Vaucher Manufacture Fleurier, a highly respected, independent Swiss watchmaking company that produces high-quality mechanical movements. The acquisition was a strategic move to secure the supply of the complex, high-end watch movements required for the house's growing watch collection, and to ensure absolute control over the quality and craftsmanship of its timepieces. By partnering with Vaucher, the house guaranteed that its watches would possess the unparalleled quality and precision that defines the brand.
As the horse-drawn carriage gave way to the motorcar in the early 1900s, Émile-Maurice Hermès adapted the workshop's saddle-stitching expertise to travel goods, introducing the house's first leather handbags in 1922. He also secured exclusive French rights to the zipper after seeing it in Canada, using it to build weatherproof luggage and bags for the new era of automobile owners.
Hermès introduced the bag as the Sac à dépêches in 1935 as a structured leather handbag. It was popularly renamed the Kelly bag after actress Grace Kelly was photographed in 1956 using it to shield her pregnancy from paparazzi, turning the design into one of the most coveted objects in fashion history.
Hermès released its first silk carré, 'Jeu des Omnibus et Dames Blanches,' in 1937 to mark the company's centennial. The square scarf became an accessible entry point to the brand and a high-margin product that helped subsidize the far more capital-intensive artisanal leather ateliers.
The Birkin bag was born in 1984 after CEO Jean-Louis Dumas sat next to actress Jane Birkin on a flight and heard her complain that she could not find a practical, spacious leather bag. The resulting design eventually overtook the Kelly in popularity and became the ultimate symbol of ultra-luxury scarcity.
By the 1970s Hermès was strained by family disputes and lacked a clear strategic direction amid a consolidating luxury industry. Jean-Louis Dumas took full control in 1978 and revived the house by remixing its equestrian codes into modern luxury products, a turnaround that culminated in the 1984 launch of the Birkin bag.