In addition to selling hundreds of thousands of bags, Hermes also raises crocodiles

Luxury brands accelerate the integration of upstream supply chains to better control the upstream of the supply chain,
Hermès International has announced that it has acquired the French calf leather tanner Tanneriesdu Puy through its leather-making department Hermès Cuirs Précieux, and two years ago it had acquired another calf leather tanner Tanneried'Annonay.

Not only Hermès, Replica Discount Chanel Handbags, LVMH Group, Kaiyun Group and other top European luxury goods companies have accelerated their layout in recent years, integrating upstream supply chains, including the acquisition of tanneries, and even the opening of crocodile farms and cattle farms.

Scarce raw materials and processes, it is reported that TanneriesduPuy is a long-term partner of Hermès International, specializing in the supply of calfskin, especially the Hermès brand iconic material "box" leather. Hermes Group stated that the acquisition of TanneriesduPuy has implemented its strategy of maintaining unique expertise and guaranteeing the supply and quality of raw materials.

Hermes Group's third-quarter revenue rose to 119 million euros from 991 million euros in the same period last year, and the fixed exchange rate growth rate was 7.9%, basically in line with market expectations. High-margin leather goods and harnesses are the largest source of revenue for the Hermes Group, which achieved 17.4% revenue growth in the last three quarters and contributed 47% of revenue to Hermès International.

A luxury industry insider told the "First Financial Daily" reporter that with the increasingly fierce competition in the fashion luxury market and the development of the supply chain, the market competition in the fashion luxury goods industry has evolved from brand and sales competition to supply chain. The competition between the company and the scarce raw material base, which is superbly controlled and controlled, has become the consensus of the company.

Chanel, LVMH Group, Kaiyun Group and many other top European luxury brands and companies have accelerated the integration of upstream supply chains in recent years. In 2013, Chanel acquired the French sheep tannery Bodin-Joyeux, which was established in 1860. The plant has an annual production capacity of 3 million square feet and is an important supplier of luxury brands such as Chanel, Hermes International and Fake High Quality Louis Vuitton Bags.

Kering, the world's third-largest luxury goods, acquired France's third-largest crocodile leather manufacturer FranceCroco in 2013. The manufacturer is one of Hermès' international suppliers, and it is considered to be the most important luxury item in the industry with Singapore's crocodile skin manufacturer HengLong International Ltd. Leather supplier. Previously, Kaiyun Group also owned Italian leather manufacturer Caravel PelliPregiate.

In 2009, Hermes announced a high-profile announcement to start farming crocodiles on farms in Australia. Farms in Queensland and Northern Australia supply a large number of crocodile skins to European luxury brands every year. Fake Hermes Crocodile Bags are also one of the most competitive products of the brand.

In addition, Hermès has established cattle farms in Luxembourg, France, Monaco, Norway, the United States, Russia and other countries. The raw hides produced by Hermes farms will be sent to the tanneries for processing.