Following a similar announcement from Gucci last month, it has been confirmed that Hermès will launch skincare and cosmetics ranges in 2020. Though the concepts will be developed in-house, production will be outsourced to third parties in France and Italy.
Speaking about the launch, Hermès CEO Axel Dumas said: “It’s quite exciting: It’s a new activity, with all the risks that involves, so we will deploy it progressively, initially in our own stores mainly, in a limited distribution so that we can learn.”
Dumas alluded to the announcement in April 2018, in an interview with French newspaper Le Monde. He said: “In the long term, it will be necessary for us to be present in all three segments of the markets for cosmetics, perfume, makeup and personal care products. That would give us a sufficient distribution presence.”
Hermès already competes in the fragrance segment. Its perfume business grew 9% in 2018 and fragrances made up 5% (US $358m) of the company’s overall sales in 2018. Due to its comparatively low price point, the move into beauty allows the company to reach a wider demographic of consumers while maintain brand perception.
This is a natural step for the house which launched its first fragrance collection in 1949 and ventured into body care in 2014.