French luxury brand Hermes is considering investing in Italian fashion and shoe subcontractors in order to enhance its supply chains. The company’s finance chief, Eric du Halgouet, revealed that they are open to the idea of vertical integration through investments, with the aim of solidifying partnerships with suppliers that meet their quality standards. This move reflects a larger trend among French luxury groups, such as Kering and LVMH, who are taking more control over their production activities. In response, fashion groups in Italy have started collaborating to protect their previously independent local supply chains.

Although most of Hermes’ production sites are currently based in France, they acknowledge the expertise of certain Italian suppliers in the shoe and clothing sectors. Du Halgouet specifically highlighted these suppliers as potential collaborators to enhance their product offerings. This enhancement could take the form of minority or majority investments, or even the creation of dedicated sites exclusively for Hermes products. Despite these potential investments, Hermes does not foresee any capacity limitations in the upcoming years, as they are meticulously managing their leather goods production and gradually expanding their workshops in France.

In conclusion, Hermes is considering investing in Italian fashion and shoe subcontractors to strengthen their supply chains. This decision aligns with the broader industry trend of luxury brands taking greater control over production activities. While most of their production sites are currently in France, Hermes acknowledges the expertise of certain Italian suppliers and sees potential in collaborating with them. These investments could take various forms, and the company is confident that they can effectively manage their production capacity while gradually expanding their workshops in France.

Useful links:
1. Hermes Official Website
2. Kering Official Website