Anyone would love to own an Hermès piece, and some people have gone to extreme lengths just for a handbag. Despite the "unattainable" factor inherent in the brand, Hermès is still one of the most coveted and publicly recognizable high-end luxury goods labels.
Business of Fashion attributes the continued success of Hermès to the label's implementation of a business strategy called "category segregation." In essence, Hermès' most coveted items—men's belts and popular Birkin handbags—are set high-end price ranges, while shoes, scarves, wallets (all under $1,000) are priced lower. It allows the label to remain exclusive and attainable at the same time.
BoF points out that the Hermès Apple Watch, priced at $1,250, is the perfect example of "category segregation." The Hermès leather strap helps make the Apple Watch appear cooler. In turn, Hermès is able to offer consumers a product that's more available to "aspirational consumers"—especially in comparison to $10,000 handbags.
