Hermes keeps luxury in the family as it translates its model of super exclusivity online
‘In my view, there is no hesitation about going digital. It reminds me of the debate about going international or not in the 1970s,’ says CEO Axel Dumas
On her deathbed, Axel Dumas’ grandmother reportedly admonished him to protect the family business as a farmer would his land. The family business in this case was Hermes, the legendary French maker of luxury goods ranging from Birkin bags to bespoke interiors for superyachts and a €5 billion (US$6.14 billion) per year enterprise. After a 10-year grooming period, Dumas became the sixth generation of the family to helm the company.
“Usually it stops at the third generation,” Dumas said during a visit to Hong Kong, referring to the “three generation curse” about family fortunes. “It could be that we are two times three.” Dumas is the great-great-great-grandson of the company founder, Thierry Hermès.
Staying hands on in the business has been a hallmark of the Hermes family. Dumas’ mother was head of production and his uncle was CEO. He recalls being a kid at the dinner table and being a part of family discussions about day-to-day operations of the company.
Keeping a family business functioning well means harnessing family members who have something to offer the company, and being ready for tough discussion with those who can’t cut it.
“For us, speaking of families, it’s important that the young generation who want to join have a successful career outside (the business),” says Dumas. “We need them to construct themselves, first.”
Seamless partnership
Axel Dumas is a conservative CEO. He studied philosophy at the Sorbonne, law and then business at Harvard. He worked at BNP Paribas before joining Hermes in 2003, from then on working at different departments in the company, notably as finance director.
