Hermes Luxury Brand: Digital Technologies and Customer Preferences

This report examines Hermes' strategic brand management, focusing on its utilization of digital technologies to cater to customer demands and enhance brand awareness. The analysis delves into how Hermes leverages the internet, visual social networks like Pinterest, and targeted Facebook advertisements to understand customer preferences and create brand affiliations. The report highlights Hermes' use of digital platforms for communication, the importance of visual content, and the application of frameworks like TRIP and Brand Equity to build relationships with consumers. Furthermore, it discusses how Hermes employs digital means such as affiliate marketing, content creators, and live streaming to engage customers and build brand loyalty. The report also references the company's financial performance and the impact of digital strategies on its market value and global expansion.

Running head: STRATEGIC BRAND MANAGEMENT
Strategic Brand Management
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Abstract
The primary purpose of the report is to discuss about how Hermes makes use of the digital
technologies that helps in catering to the demands of the people. The report also throws light
on how the company raises the awareness and creates the affiliations through the exclusive
use of the digital means.
Keywords: Brand Management, social networks, customer preferences, digital strategies

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Introduction
Brand Management refers to function of the marketing that makes use of techniques
that can increase perceived value of the product line over the passage of time. Brand
management helps the prices of the products in going up and it helps in building loyal
customers with the help of the positive brand associations (Audrezet, De Kerviler & Moulard,
2018). The organizations in the present age builds the digital presence so that they can stay
ahead of the competitors. Hermes is the name of the French luxury goods manufacturer that
was established in the year 1837 (Hermes.com., 2019). The company specializes in selling
leather, home furnishings, jewellery along with the watches in the market. This report
discusses how Hermes can respond to the changing preferences of the customer by taking
recourse to the digital technologies. This report also talks about how Hermes can raise the
awareness and create the affiliations with the help of the digital means.
Use of Digital Technologies of Hermes
The companies use the digital technologies in the modern age so that they can
understand the preferences of the customers. Hermes has been able to democratise the
information by taking recourse to the internet. Hermes offers various kinds of choices in
relation to the online offering so that it serves the needs of the modern day customers. It can
cater to the interests of the wealthier consumers that can help Hermes in making the profits.
Hermes has made of the visual social networks for evoking aspirational emotions of
consumers that makes them buy the luxury products. Hermes uses the digital platform of
Pinterest that has helped in raising the brand awareness along with the advocacy (Essamri,
McKechnie & Winklhofer, 2019) The Pinterest profile of the company is aspirational and
educational that helps in creating a good impression before the people. The company
provides the Pinterest feeds that is followed by the consumers of the company. It helps in

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promoting the various kinds of products of the company. Hermes has built a website that
helps it in learning about the style of the customers in the modern age. It has helped in
communicating the fact that the company thinks in a different manner that has endeared the
brand for the people. The company has challenged status quo by designing the products in a
beautiful manner. The company has communicated story which lies behind the product that
has increased its popularity among the people of the digital age. The company with the
exclusive use of the digital campaigns has emerged to become the second largest company
dealing with the luxury goods in terms of the market value. The sale of Hermes has grown by
around 8.6 percent that has helped in earning 1.76 billion $ as has been brought out with the
help of the annual report of the company. (Warc.com., 2019). The annual report of the
company has brought out the fact that highest level of the growth of the company has come
from Asia and Hermes has opened three stores within China. The company has generated 15
% of the total revenue from the US.
Hermes also uses the Facebook Advertisements that has helped it in reaching the
luxury shoppers. Hermes targets the affluent customers by showing their exclusive range of
the products that helps to draw in the customers. It has helped the company in the area of
online advertising and has helped the company in targeting the right people. It has helped
Hermes in knowing about the tastes of the young people along with the affluent class that has
acted to the benefit of the luxury brand (Koschmann & Sheth, 2018). Google is an influential
channel that can help the luxury shoppers in learning more about the products that are offered
by Hermes. The people can know about the fragrances, shoes, leather goods along with the
hats of the company with the help of the advertisements over Face Book. The company takes
recourse to strong Search Engine Optimization (SEO) that has increased the ranking of the
company website. It helps in generating the traffic and the visual content helps in engagement
of the customers. The company focuses on visual content by writing content that is made

4STRATEGIC BRAND MANAGEMENT
clear to the readers with the help of imagery. It has helped in the generation of social shares
for the company (Kecskes, 2017). The Facebook page of the company can reveal about the
charities that have been made by the company that can increase the amount of revenues that
is being earned by the company. The comments that are made by the people can help the
company in knowing about the likes of the customers of the present age. Hermes makes use
of the TRIP Framework that has helped the company in spreading its influence among the
people. Hermes with the help of the Facebook Page along with the Instagram profile updates
regarding the upcoming events that has increased its popularity among the people. The
element of personalization in the social media channels has helped the company in catering to
the exclusive demands of the millenials. Hermes has taken recourse to the Brand Equity
Framework that has been instrumental in building effective relationship with the consumers.
Hermes has appealed to the feelings along with the imagery of the people with its exclusive
collection of leather goods, accessories along with the clothing. The products of Hermes has
the cost to satisfy that has helped the company in getting an edge over the competitors. The
products of the company have the premium pricing that has increased the brand reputation of
the company. Heritage can be said to be an important element that is crucial for the building
of the luxury brand. Hermes has established the legacy by the communication of their story
that has helped in connecting the consumers (Warc.com., 2019). The brands can know about
the particular tastes of the millenials with the help of the page on the Face Book (Parker et al.,
2018).
The company creates the sense of the exclusivity with the help of the images and the
content on the social media platform. Exclusivity can be said to be fundamental to that of
luxury brand marketing and it helps in maintaining the desire of the consumer with the help
of scarcity and that of rarity. Digital technology has helped in transforming the habits of the
customers in the modern age. The company has created the sensation of the colour and the

5STRATEGIC BRAND MANAGEMENT
colourful shapes are used by the company that can attract the attention of the viewer. The
people exhibit their choices with the help of the mobile devices along with the apps that
guides the business in making the products (Peter, Olson & Grunert, 1999). The customer
expectations have shifted in the present age and this has given rise to the modern buyer. The
business stays connected to the customers with the help of the digital platforms that proves to
be useful in knowing about the distinctive taste of the customers.
Digital Means of Hermes
Hermes can raise the awareness and create the affiliations by taking recourse to the
digital means. The luxury brand advertisers can be empowered with the help of affiliate
marketing. Hermes can partner with the publishers that can help in promoting the products to
particular kind of the customers. The publishers can be made use of by the company that can
help in the proper representation of the prestige along with the status of the popular luxury
brand. The company can identify the publishers that can help in reaching out to the brand-
consuming customers. It can help in the cultivation of the distinct brand identity by taking
recourse to the publishers. It can play an effective role in the creation of brand awareness that
can help in creating a positive image before the people. Hermes can take the help of content
creators that can help the company in meeting the stipulations of the present age customers
(Sexton, 2015). It can help in driving advocacy for the company that can help in the
development of the company in the long run (Casaló et al., 2015). The live streaming events
of the company are advertised on the social platforms that helps in drawing support for the
popular brand. The social channels like Instagram are used by the company that helps the
consumers in making the luxury purchase decisions. It can help in promoting the identity of
the brand that can appeal to the people of the present era. The company can know about the
digital strategies that are being employed by the competitors of the company with the help of
the social media platforms that can help in the future growth of the company.

6STRATEGIC BRAND MANAGEMENT
The incorporation of the social networks along with the review sites can help in
empowering the customers so that they can become the brand advocates (Holt, 2016). The
use of the digital means has helped Hermes in addressing individual shopper that can help in
the creation of customized relationship with the brands. The clothing of the company can be
ordered straight from runway that can help the company in growing in the present age. The
company has digital asset management system along with product information management
system that helps in serving the global markets of the company. The theory of the brand
loyalty talks about the relationship of the psychology of the customers with that of brand of
company. On the basis of this theory, it can be said that positive behaviour of the customers
towards the brand have three elements- emotional attachment, behavioural aspect along with
the brand evaluation (Ding & Tseng, 2015). The customers would feel attached to Hermes as
the company has Facebook pages along with the Pinterest accounts that can help in creating a
bond with the public. The company can get to know about the likes along with the dislikes of
the customers that can help the company in making the products based on the preferences of
the people. The customers can get positive reviews regarding the product that can increase
their popularity before people (Duus, Cooray & Page, 2018). The website of the company
can win the confidence of the customers that can strengthen the relationship in between the
people and the company.
Conclusion
Hermes can take recourse to social networks that can arouse emotion in the
consumers that can make them purchase luxury products. Hermes uses Pinterest that raises
the brand awareness regarding the company. The profile of the company on the digital
platform of Pinterest can be said to be aspirational which creates a good image among the
people. Facebook advertisements are also used by company that has helped it in getting the
attention of a large number of people. It can proved to be helpful for the company in targeting

7STRATEGIC BRAND MANAGEMENT
right people that has brought immense benefits for the company. The company can know
regarding preferences of people that has greatly facilitated the process of growth of brand.
The company makes partnerships with that of publishers that has been instrumental for
promoting products. It has helped in representing the company in the positive light before
people that has augmented status of company. The prestige of the brand has been elevated
with the help of its digital presence. Hermes involves itself in identifying publishers that
works to the benefit of the company.

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