Thierry Hermes opened a shop in 1837 in Paris as a company specializing in horse harnesses. Thierry used a stitch that can only be done by hand, known as the saddle stitch. The harness business quickly garnered clients in Parisian elite and European royalty, including emperor Napoleon. Thierry's son took over in 1880 and moved to 24 Rue de Faubourg Saint Honore, where the store still stands. That same year, Hermes added saddlery to its custom business, which required extensive measurements of horse and rider, often resulting in a long wait for the finished product. In fact, royal coronations were sometimes delayed until Hermes could complete the saddle. In 1900, Hermes began offering a bag specially designed for riders to carry their saddles.
When Thierry's grandsons took over, they renamed the company Hermes Freres and obtained the exclusive rights to the use of the zipper for leather goods. Emile-Maurice Hermes was the first to introduce the zipper in France. In the 1920s, Hermes added new accessory collections and their first leather garment, a zippered golfing jacket, made for the Prince of Wales. Two years later, the first leather handbags were introduced into the market. In 1924, Hermes opened two shops in prominent French resorts where the stores quickly gained a reputation for style and craftsmanship. In 1929, the first Hermes women's couture collection was previewed in Paris.
The 1930s saw the introduction of the now famous "Kelly Bag" and the Hermes scarf. Hermes oversaw the production of its scarves from beginning to end, weaving the Chinese silk into fabric twice as strong as most scarves. Designers would spend years creating individually screen-printed designs from the silk of 250 mulberry moth cocoons. All scarves are hand-printed and all hems are hand-stitched. The Hermes scarf is so popular that during the holiday season in Paris it is estimated that one scarf is sold every 20 seconds, with an average price of $550 to $950. The Hermes scarf has many famous fans, such as Queen Elizabeth II, Audrey Hepburn, Oprah Winfrey, and Jackie Kennedy. 1938 saw the 100th anniversary of Hermes and its introduction to the U.S. market in New York's Neiman Marcus department store. In 1946 came the Hermes silk ties with the first perfume, Eau d'Hermes introduced in 1949.
In the early 1950s Hermes acquired its carriage and horse logo with signature orange boxes. In 1956 a photo of Grace Kelly carrying the Sacs depeches bag appeared in Life Magazine. The bag was renamed the "Kelly Bag" and put Hermes on the map around the world.
While successful for over one hundred years, Hermes began to falter in the 1970s, mostly due to its desire to use only natural products. By 1976, however, the company had brought in designers Eric Bergere and Bernard Sanz to revamp the collection, which they did through use of unusual material such as python and ostrich-skin, targeted towards a younger clientele. By the end of the 1970s, sales were up $50 million. The success continued throughout the 1980s as Hermes now offered jewelry, fragrance, shoes and women and men's wear.
In 2000, Hermes opened a boutique on Madison Avenue as well as stores in Spain, Taiwan, Tokyo, and Barcelona. In 2003, John-Paul Gaultier joined Hermes as head designer. Jean-Claude Ellena joined Hermes as the house perfumer, launching the Hermessence line of fragrances and Jean-Louis Dumas-Hermes retired from his family's company in January, 2006. Patrick Thomas became the first non-Hermes to helm the company.
High-quality materials and hand-craftsmanship drive prices for Herm?s merchandise well into the upper echelon. An Herm?s scarf is priced at $385, a tie for $180, and a Kelly purse for $6,900. Hermes does not use assembly lines; each handbag is hand-stitched with one bag taking 18 to 24 hours to complete. These bags are in constant demand and clients often remain on a waiting list for up to one year for some of the most popular bags, like the "Kelly," "Constance" or "Trim" bags. Most recently, the introduction of the "Birkin," named after actress Jane Birkin, created a stir in the handbag world, with a wait of up to six years and a price tag beginning at $6,000.