Why Hermès’ expansion in India is reflective of a shift in consumer behaviour in luxury fashion

With the launch of their new boutique in Mumbai, Hermès is optimistic about their growth in India’s evolving  luxury landscape

The fact that India’s luxury market is booming comes as little surprise to anyone who has been following the changing lifestyle choices of the country’s youth. Yet, the term “luxury” remains ambiguous. Despite what fashion magazines or Instagram will have you believe, luxury isn't always defined by the ever-changing whims of runway shows. True luxury is profoundly personal. It is found in the smooth touch of silk lining a dress or the precise fit of a bespoke suit and, as Eric Festy, Regional Managing Director of Hermès South Asia pointed out ahead of the launch of Hermès’ new boutique in Mumbai’s Jio World Plaza, luxury for many is craftsmanship. 

Festy, who joined Hermès in 1993, is well-versed with the world of luxury. The brand first launched in India 16 years ago—initially in New Delhi, followed by Horniman Circle, Mumbai, and now a new boutique in Jio World Plaza, Mumbai. “We have seen a change in the consequence of the transformation of the retail landscape when it comes to luxury, especially in India; we see a great evolution at rapid pace,” notes Festy.

However, Hermès has adopted a cautious approach in India, maintaining just two stores until the recent opening of their third.

This expansion is reflective of the shifting consumer behaviours that Festy has observed over the years. He explains, “We are a family company, which means that we think long term, we have a very long-term vision. We think about patrimony transmission and what's going to happen to the next generation. We know that it takes a lot of time to do things properly—this is the problem of the beauty of craftsmanship. One needs time to do things properly.”

India's rich tradition of craftsmanship has long inspired luxury brands globally for several years, and Hermès is no exception. In the 1950s, Hermès' scarf, 'Caparaçons de la France et de l'Inde', drew inspiration from India. Festy recalls, “What I like really about India is that you are a country of a very rich culture, you have a lot of know-hows, craftsmanship, you know how to work [with] materials: silver, gold, fabric and porcelain.” This depth of craft makes Indian consumers unique and possibly more demanding—a trait Hermès values for its contribution to growth and development.

When most international luxury labels entered India, their stores were confined to the premises of five-star hotels. While in the last decade or so they began setting shop in architecturally restored spaces in the arts and heritage precincts of cities, of late, one witnesses luxury retail shopping gaining momentum in malls, with the aim to target a younger, fashion-conscious demographic possessing an increasing purchasing power. The opening of their newest boutique marks a significant expansion for Hermes. Festy views this new venue as symbolic of Mumbai’s transformation, akin to their earlier move into the historical centre of Horniman Circle. “This store here is more about modernity,” says Festy. Each Hermès store reflects its surroundings. “Every store is a bridge, a bridge between what Hermès can bring with its values, its history and what the country or the city can bring,” he explains.

Festy adds, “When you look at the façade at this [Jio World Plaza] store, it is very colourful and very modern—the total opposite from the one at Horniman Circle, which has a more heritage expression.” Similarly, even the product offerings in the two stores are different. “I would say we will probably have very different clients here compared to the Horniman Circle store; time will tell,” says Festy, explaining that he expects a much younger and fashionable clientele that veers towards accessories. 

A nod to the local artists 

The Hermès store at Jio World Plaza is designed by Parisian architecture agency RDAI. It boasts a graphic sense of place with the use of colour and detailed craftsmanship. The palette ranges from earthy tones of the stucco walls and the stone floors to Jaipur-inspired azure accents that enliven the Faubourg mosaic. Prints and illustrations are from Émile Hermès along with visuals of India’s forests by Belgian photographer Harry Gruyaert and artworks by French painter Christian Babou. 

“We consider that each country has a specific touch and sensibility and that we have to work with local people to bring that out. I think this is a big singularity for the brand,” says Festy. This allows the brand enough time to consider the differences between each country and the understanding that their clients are very different across places.  

Unlike other luxury houses, Hermès doesn’t have a worldwide programme for its store windows. Instead, they invite local artists to design their windows. To celebrate the opening of the new store, Hermès collaborated with Indian production designer and filmmaker Aradhana Seth to create a window installation of Faubourg in an Enchanted Forest, inspired by Gond art from Madhya Pradesh. This partnership highlights Hermès’ strategy of local engagement and cultural integration, a practice that extends across its global operations. 

This isn’t the first time Hermès has worked with an Indian creator. The brand has partnered with art and design schools in the country for past events as well as with architect Rooshad Shroff who creates window displays creates seasonal window displays for the other two stores. “It’s something we want to continue because we think that we have a lot to learn from Indian artists and Indian people in general and this is what we like at Hermès.” Festy adds that such encounters and exchanges of different working methods and visions are vital for the brand's evolution.

Across 300+ boutiques worldwide, each Hermès store is “free and responsible for their own buying, as we consider that the store manager is the person who knows clients best.” This approach has not only helped Hermès navigate the complexities of global expansion but has also led to a significant increase in their economic performance. 

At the new store, one finds an open-plan salon with silks on display along with fashion jewellery and homeware. The brand’s perfumes and newly-launched beauty products occupy space towards the entrance, whereas the watches and leather goods are unveiled beside jewellery collections enclosed by bamboo veneer marquetry walls in a deep blue hue inspired by the city of Jodhpur. The men’s and women’s ready-to-wear sections feature fabric-covered walls, hand-embroidered by a local atelier in a turmeric-coloured motif reminiscent of the shadow-dotted streets of the city. The brand hopes to find opportunities to celebrate India discreetly, incorporating key moments of Indian culture. “We consider ourselves as a multi-local company—not international but multi-local,” says Festy.  

The future and heritage

Over the last two centuries, for Hermès, despite its global expansion and coveted leather goods, merging a global identity with local adaptations is no easy feat. But the focus on craftsmanship and quality remain consistent. According to the Wall Street Journal, Hermès’ sales for the first quarter of 2024 increased by 17 per cent year-on-year at constant currency to US$4.1 billion.

Reflecting on the future, Festy remains cautiously optimistic. “We don't want to talk ourselves, we let our customers talk about the bags. Sometimes you see articles in the press saying that our bags are a better investment than any stock exchange product because it's a big investment. While we are very happy about it, nobody knows what tomorrow will bring,”  he remarks.

With the rapid proliferation of the digital age, Hermès’ portfolio, especially the Birkin and Kelly have once again gained popularity. “Today, roughly, leather accounts for 50 per cent of the sales of the group and silk accounts for 10 per cent. When I joined the company 30 years ago, it was exactly the opposite—silk was 50 per cent of the sales and leather was 10 per cent—which, in a way, reminds us that nothing is permanent, everything can change in the long run,” says Festy. In fact, every six months, the house changes 70 per cent of its collection, but the design, attention to detail, and the craft remains in the same universe. “We often say at Hermès that there is no revolution, only evolution,” says Festy.   

As Hermès continues to evolve, it embraces both its heritage and its innovative spirit. “There are two ways to view Hermès,” points out Festy. “You can consider it a very conservative company which, in a way, is true, because it's very focused on the values and on the history as it is around 200 years old. At the same time it's a very innovative company… but you don’t necessarily feel it from the outside,” he says. 

This is evident with the evolution of the brand’s Indian clientele. “The way we address the Indian market is with patience, cautiousness, and confidence at the same time because we do see a great evolution of the clients…we like to take the right time to do good things.” During its first years in the country, Hermès started with a very narrow base of very loyal clients. But in the last five to six years, the brand has welcomed newer, younger customers and those new to luxury and high-quality products. 

With the new store, Hermès is optimistic about continuing this growth and further enriching its relationship with India's vibrant culture and discerning clientele. “Ten years ago, it was mainly about leather and bags but today you see in our Indian stores, we have 15 of our different métiers out of our 16 global métiers. We have everything except the Petit h métier available here, and this is the perfect representation of the diversity of this House which, I think, is an asset for the company,” states Festy. 

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