Companies

Hermès could consider investing in Italian fashion and shoe suppliers

Nov 22, 2023 France

This willingness was shown by the luxury company’s CFO, Eric du Halgouët, in a call with analysts last month. The goal would be to further integrate its supply chain

“We could consider vertical integration with investments to consolidate partnerships with some suppliers that share our standards,” said the CFO Hermès, quoted by Reuters. While most of the luxury company’s production sites are in France, some Italian suppliers have specific expertise in the manufacture of shoes and clothing that the company could lean on for reinforcement, he added.

These possible investments in Italy could therefore take the form of minority or majority stakes, or even the addition of a specific site dedicated to Hermès products.

The French-based group allocates around 20% of its production to Italy and the rest to France. Hermès shoes are produced in Italy through the footwear supply chain in Parabiago, outside of Milan. It also sources from the neighbouring country metal components for shoes and handbags, women’s wear, including knitwear, and men’s wear, as well as makeup products and some household items. This information comes from Francesca di Carrobbio, CEO of Hermès Italia (shoeintelligence.com).

Hermès, which has been gradually increasing its leather goods production in France, also said that does not foresee any capacity constraints in the coming years.

Image Credits: theindustry.fashion

France Italy Companies Hermès Investment Shoes Supply chain