Behavioral targeting

Understanding Hermès’s strategy

I discover this very afternoon, an article titled “Hermès rethinks its Digital strategy“.

From reading it, it is crystal clear that Hermès’ inner strategy lies in conquering new markets by understanding the environment and adapting to it. Which means that the whole Company’s organisation lies around the trade/marketing Department. On this basis, the R&D Department is aimed to come up with a product that fits the customers’ expectations, the HR Department has to provide candidates able to act as the Company’s ambassadors, wherever they work and the Finance are used to improve the market shares of the Company.

However, the article also shows the weak point of such a strategy : a short sighted vision. Hermès is unable to foresee the changes, and has to run after them. The key to decision taking is the evolution of environment, in an iterative process. Which means that, should one or several of its competitors get a step forward, by selling an innovative product, for instance, or selling it an innovative way, the parisian Company would be in an awkward position, maybe losing market shares. This is what happened to Hermès when facing Burberry.

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