Author(s)

Hanqin Yang

Corresponding Author

Hanqin Yang

ABSTRACT

Luxury market is developing rapidly in recent years, so the strategic study of luxury companies is a new management science worldwide. The competition among luxury brands is increasingly fierce. Top companies in the industry, such as LVMH, Richemont and Kering, have introduced different strategic management plans to compete for market share. However, the arrival of COVID-19 in 2020 is undoubtedly a huge blow to the luxury industry. Based on the relevant theories of corporate strategic management, this paper analyzes Hermès's financial statements, development status and new strategic management plans under the epidemic situation in turn. On this basis, the case analysis method, BCG matrix and other methods are used to analyze Hermès's strategic model and obtain the strategic objectives to be implemented by the company. The results of the study show that Hermès has performed remarkably well during the pandemic. This paper contributes to the existing literature from two aspects: on the one hand, it comprehensively analyzes the implementation of Hermès’ strategic management in all aspects during the epidemic; on the other hand, it predicts the main direction of Hermès' strategic management in the future.

KEYWORDS

Hermès, Strategic management, Luxury market, Covid-19