Understanding the Microeconomics
HERMES OUTSTRIPES DEMAND AND SUPPLY
Based on Bloomberg article by Andrew Roberts, November 4 2011 Hermes wanted to build two more factory because they reach their full target until 4 November and since they know they quantity demand will always increase, their goal in 2012 to raise the quantity demand until 14 percent. They think Europe debt crisis would not effect their selling on 2011. They are thinking about increasing the price of their product due to the increase price for raw materials. In my opinion the demand and supply of Hermes product keep stable from last year
Hermes is one of the most expensive and popular among other luxury brand. Specializing in leather, perfume, luxury goods, it based in Paris, France. branded product are now crucial for people with a high income. Even though the price of the goods is out of nonsense people still buy that branded goods. A little bit story about Hermes brand background is back in June 1993 Hermes started their publicity in coincidence. In Paris bourse or stock exchange. That time the equity sale generated excitement to Hermes. The equity sale help Hermes family by allowing members to liquidate their holding in Hermes without arguing over the share. Nowadays Hermes value around $19.2 billion. Hermes have 328 store in the world. despite the global economy and a really bad unemployment in Europe high end brand still explode in profitability and sales. The sales growth slow facing the increasing economic problem. Mostly the buyers of this brand is Chinese shoppers who frequently come to Paris only to buy luxury items because in Paris it cost less than the luxury brand price in china. I assume That is how the demand happen because people want it, there are people who can afford it and they actually bought it.
It seated on the articles French birkin bag maker plan to build two more leather factory in 2012 I assume it’s because the quantity demand increase because there are a lot of people who’s willing to pay
Based on Bloomberg article by Andrew Roberts, November 4 2011 Hermes wanted to build two more factory because they reach their full target until 4 November and since they know they quantity demand will always increase, their goal in 2012 to raise the quantity demand until 14 percent. They think Europe debt crisis would not effect their selling on 2011. They are thinking about increasing the price of their product due to the increase price for raw materials. In my opinion the demand and supply of Hermes product keep stable from last year
Hermes is one of the most expensive and popular among other luxury brand. Specializing in leather, perfume, luxury goods, it based in Paris, France. branded product are now crucial for people with a high income. Even though the price of the goods is out of nonsense people still buy that branded goods. A little bit story about Hermes brand background is back in June 1993 Hermes started their publicity in coincidence. In Paris bourse or stock exchange. That time the equity sale generated excitement to Hermes. The equity sale help Hermes family by allowing members to liquidate their holding in Hermes without arguing over the share. Nowadays Hermes value around $19.2 billion. Hermes have 328 store in the world. despite the global economy and a really bad unemployment in Europe high end brand still explode in profitability and sales. The sales growth slow facing the increasing economic problem. Mostly the buyers of this brand is Chinese shoppers who frequently come to Paris only to buy luxury items because in Paris it cost less than the luxury brand price in china. I assume That is how the demand happen because people want it, there are people who can afford it and they actually bought it.
It seated on the articles French birkin bag maker plan to build two more leather factory in 2012 I assume it’s because the quantity demand increase because there are a lot of people who’s willing to pay