Hermes Can't Meet Demand for Bags, Scarves

Victoria Beckham with her Hermes Birkin bag. Image courtesy: Reuters

The fact that it was featured almost as another character called 'bagwati' in Zindagi Na Milegi Dobara, is proof of Hermes' popularity among consumers. And now this French luxury group can't meet the demand for luxury as its profits leaped to £257 million.

The group's operating profit jumped 37 per cent to 418.1 million euros in the first six months of the year, driven by strong growth in the United States and China, a Reuters report states.

A film still from Zindagi Na Milegi Dobara shows 'Bagwati' an ostrich leather Hermes Kelly bag. Image via Facebook

The French fashion house has had to hire about 400 new employees to meet demands for its iconic £500 (approx Rs 37,000) headscarves and Birkin handbags that cost around £6,000 (approx Rs 4.4 lakh).
 
Hermes's bags have been flaunted by everyone from the British queen to die-hard fan Victoria Beckham, who reportedly owns more than a 100 Hermès Birkin bags that probably cost her over £1.5 million.
 
Their most famous bags are the Kelly bag which was named after the actor Grace Kelly, and the Birkin was named after singer, actress, director and songwriter, Jane Birkin. And just when you thought they'd slow down, Hermes plans to open 10 new stores.

Hermes isn't the only luxury label making a profit, even LVMH and Burberry have recorded high profits.