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Hermès’ Scarcity Model Shields Europe’s Richest Family From the Luxury Slump

The French house’s waiting lists, artisan production and defensive ownership structure have helped it outperform LVMH and Kering.

On the heels of Hermès’ strong first-half 2026 results, it’s clear the French luxury house’s scarcity model and singular branding, built around icons like the Birkin and Kelly, have at least partially insulated it from the recent downturn in luxury spending. While ongoing Middle East conflicts and a lagging post-pandemic demand recovery in China have squeezed competitors like LVMH and Kering, Hermès’ distinct strategy shields both the company and the family that has led the brand for 179 years.

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The Hermès family, comprising more than 100 heirs, ranks among the world’s........

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