H E R

M E S
 PACKAGING INDUSTRY ANALYSIS

NEW AND RELEVANT TRENDS

TARGET AUDIENCE

BUYER PERSONA

BRANDING

PRODUCT DECISIONS

OMNICHANNEL

COMMUNICATION

CONTENT BUDGETING

RISK ASSESSMENT AND CONTINGENCY PLAN

 INDUSTRY ANALYSIS
ECONOMIC
TECHNOLOGICAL LEGAL
Potential growth for
corrugated boards and Focus on e-commerce Circular economy and
paperboard packaging ready packaging. waste reduction

P E S T L
E

POLITICAL
SOCIAL ENVIRONMENTAL
Regulations that restrict
certain materials and China is the largest Significant portions of
prioritize waste consumer global plastic waste
management via EPR incinerated (25%) and
landfilled (40%)
 INDUSTRY ANALYSIS

STRENGTHS WEAKNESSES
Working with suppliers that have High costs for luxury packaging
access to premium materials

Trends of developing sustainable

S W facilities and logistical difficulties

Market slowdown due to COVID-19

biodegradable packaging pandemic

OPPORTUNITIES
THREATS
Catering to the increasing
demand for eco-friendly luxury
goosd and the rising middle
O T Persistent global distrubances that
disrupt supply chain and has an
impact in the industry
class worldwide

LUXURY PACKAGING INDUSTRY

 INDUSTRY ANALYSIS

PRESTIGE

MASS MARKET EXCLUSIVITY

AFFORDABILITY
 PRIMARY RESEARCH - FOCUS GROUP

Emblem of french
luxury

Must: creativity &

sustainabilty

Traditional packaging n=4

May 2023
3 females, 1 male
Ages: 45-56
French & Serbian
Keep their luxury product
Regular Hermès consumers
boxes
 PRIMARY RESEARCH - SURVEY
n= 104
May 2023
Ages: 15-46+ 57%
76% female, 24% male
57% of participants were
46 years old or more,
30% were between 15-25
years old
59%
59% of participants purchase
luxury items only on special
occasions, 25% only twice a
year, the rest weekly or
monthly
37%
70%
70% of participants have 37% of participants believe
purchased an Hermès that Hermès is a sustainable
product previously, 30% had brand, 47% of them were
not neutral
66% 76%
66% of participants 76% of participants
believe sustainable believe that creative
packaging is important, packaging is important,
17% were neutral 14% were neutral
TARGET DEMOGRAPHIC PSYCHOGRAPHIC
Buy luxury items for
AUDIENCE 46+ years old / 15 - 25
years old
special occasions
Packaging is considered
Female and Male
important (willingness to
Countries: France, Italy,
pay more depending on
Lebanon, Spain, among
the cost)
others; but all of these
Creative and
with a medium-high
sustainable packaging
annual income.
is considered important
 BUYER PERSONA
PSYCHOGRAPHICS
Interests: fashion, luxury, travel, art, fine dining
Values: family, quality, design, sustainability, balance,
exclusivity
Personality: confident, sophisticated, cultured, type A

SHOPPING HABITS
Regular high-end luxury goods purchaser
Willing to pay premium for quality
ANNE LISE DUPORT Prefers in-store shopping for personalized service
Collects limited-edition or rare items

Age: 47
Location: Paris 16ème
MMOTIVATIONS
OTIVATIONS Work-life balance
Profession: Senior Executive Success and achievement Connection and
Income: 320,000 Euros community
Self-improvement
Marital status: Married with 2 children
 THE PRODUCT

Price: 8600,00 Euros*

PoS: 24 Rue du
Weight:
4kg Faubourg Saint-Honoré,
57 cm
Capacity: 75008 Paris, France
32L
*Provided by Hermes Paris HR and
Marketing Department

SCAN HERE
20 m
cm 35 c
 BRANDING

NEW VISION POST-INTERVIEW

Cohesion between Respect for Imagery Limited Editions Multi-functionality

Product and tradition Promote the usage of To add more value Serves as a reusable
Packaging The packaging design images that conveyed item
Create a strong link should continue to messages of home and
between the product respect and reflect its travl.
and its packaging traditions
PRODUCT DECISIONS
PRODUCT DECISIONS

Shopper bag

Open

Unfolded
Closed
PRODUCT DECISIONS
 RETAIL
STRATEGY

"Travel with
design"
RETAIL STRATEGY
AR "Travel with Design" experience POV viewer

Creation and Installation Reveal and Promotion Evaluation

 COMMUNICATION STRATEGY
Newsletter Website

TRAVEL THE WORLD WITH THE

R.M.S SUITCASE

SUSTAINABILITY OF PACKAGING
Discover the Hermès R.M.S. Created to last,
the Rolling Mobility Suitcase (R.M.S.) is a
At Hermès, we strive to continuously improve our sustainability
product of exceptional know-how and
innovation with its innovative, reusable efforts, and our recent partnership with IDP Luxury Packaging is
and stylish packaging.

an example of our commitment. Through this collaboration, we are

strengthening our sustainability strategy by developing a
reusable packaging box made of environmentally friendly
materials. By working closely with IDP Luxury Packaging, we are
able to develop a solution that not only meets our high standards
l for luxury and craftsmanship, but also aligns with our commitment
l ll l
l l
l l
lll l l l l

to environmental protection. This innovative approach to

ll
l
l

l packaging allows us to reduce waste and promote the use of

sustainable materials to support a circular and responsible
luxury industry.

Our packaging in collaboration with

luxury IDP Packaging, gives you a
reusable compartment box that can be
placed in your closet as a way to store
all your previous Hermès boxes.

Spreading awareness of new

Informing customers on Hermes' sustainability initiatives
products to loyal customers
COMMUNICATION STRATEGY
SOCIAL MEDIA

Partnership with Influencers Instagram and Facebook Stories

Lena Mahfouf Marie Lopez

Instagram: 4.2M Instagram: 6.2M
hermes 38m

TikTok: 3M TikTok: 483K

Chiara Ferragni Aimee Song

Instagram: 29.4M Instagram: 7.3M
TikTok: 6.3M TikTok: 108K

Nour Arida
Instagram: 10.7M
TikTok: 3.5M

Drive product consideration, promote

Brand awareness and product endorsement
customer engagement and raise awareness
 COMMUNICATION STRATEGY
Podcast Travel Giveaway Launch Event

Invites you on a trip of a lifetime to:

Athens, Greece

CLOTHES AND WONDERS

Hello! My name is Brigitte, I’m a packaging and decoration box
from the Hermès R.M.S suitcase. I live inside a lovely French
lady’s closet. She created me from the packaging box she
received after her purchase. I love it here!

Increase engagement with brand Increase brand engagement Generate buzz, increase
across various platforms and loyalty sales and engagement
 BUDGETING

IDP PRODUCTION PLAN*

Idea Design Sea Truck

Materials Labor Contingency
Patenting Patenting Freight Freight Total
(€) Costs (€) Fund (€)
(€) (€) (€) (€)

407.237 5.300 25.500 1.560.486 4.262 1.050 300.575 2.304.410

*Assumptions for monthly budgeting

1) Materials, Idea Patenting and Design Patenting would have more significant initial monthly costs due to the assumption that these will be
needed earlier in the the production/manufacturing stage of the cardboard boxes
2) Labour Costs will be evenly spread out as a monthly wage will be paid
3) Sea & Truck Freight will be later stage costs as these will be required later, once the boxes have been produced
4) Contingency Fund spread evenly to support any potential risks that could arise at any stage of the process
 BUDGETING

HERMÈS MEDIA PLAN*

Post-Launch
R&D Retail Mkg & Contingency
Salaries €) Mkt Total
(€) Strategy (€) Comms (€) Fund (€)
Research (€)

2.158.16
50.000 106.680 800.100 1.176.386 25.000 323.725
6

*Assumptions for monthly budgeting

1) R&D costs completed in the first 6 months, as this research will inform most of the project
2) Retail strategy costs incurred 6 months onwards because display window + VR experience needed towards the end of the process
3) Marketing and Communication expenses spread evenly, biggest cost and required throughout the year
4) Post-Launch Market-research only needed as from June ‘24 to evaluate the campaign once finished
5) Contingency fund spread evenly to support any potential risks that could arise at any stage of the process
RISK ASSESSMENT
Risk Assessment Matrix
IMPACT

0 1 2 3
Acceptable Tolerable Unacceptable Intolerable

Software breach Failure to

Artist denies Counterfeit
Improbable (cyberattack of maintain ethical
collaboration packaging box
logistics system) sourcing
LIKELIHOOD

Gov regulations Natural disaster

Increase in costs Supply chain
Possible on sustainable (forest fires,
from suppliers disruption
packaging draught, etc.)

Economic Regulations on
Health & safety Consumer trend
recession travelling
Probable contamination of boycotting
(decrease of (environmental
during logistics luxury brands
demand) reasons)
 CONTINGENCY PLAN

Contingency Planning
Scenario 1. Natural Disaster

Key Responsibilities Timeline

Scenario Trigger Response
Who What When What

Crisis Coordinate Immediat

Identify impact of disaster, verify employee
management communication and e (24-
safety
team decision-making 48h)
1. Inform crisis
management
Forest fires,
team Evaluate facilities and Short-
earthquake, Operations & Organize temporary production by prioritizing
Natural 2. Assess impact assure feasibility of Term (2-3
draught, flood, Logistics orders
disaster of natural continued operations weeks)
hurricanes,
disaster
tsunami, etc.
3. Set forth
Long-
emergency plan
Health & Ensure general well- Term Restore facility, and implement new resilient
Safety being of employees (3-5 processes
months)
 CONTINGENCY PLAN
Scenario 2. Consumer Trend of Boycotting Luxury Brands

Key Responsibilities Timeline

Scenario Trigger Response
Who What When What

Prepare guidance
Immedia
Corporate on action plan Recognize concerns and begin investigation with
te (24-
Ledership (stakeholders & experts
48h)
departments
1. Recognize
concerns by
Develop
Controversy such as consumers transparent Short-
Consumer trend insensitive campaigns, 2. Examine issue to Marketing &
campaign to Term (1- Instigate. and communicate action plan (changes in
Communications
of boycotting rise. of low-cost/high regain consumer declare positive 3 business practices and supply chain)
(PR)
luxury brands quality brand trust actions related to months)
alternatives 3. Develop issue
strategic plan for
moving forward
Implement new Long-
Supply Chain transparent Term Track and evaluate success of plan and communicate
Management practices and (up to 1 positive brand messages
relationships year)
 U
K YO
THAN
APPENDIX

Appendix 1. Survey Questions and Results

APPENDIX

Appendix 1. Survey Questions and Results

APPENDIX

Appendix 1. Survey Questions and Results

APPENDIX

Appendix 1. Survey Questions and Results

APPENDIX

Appendix 1. Survey Questions and Results

APPENDIX

Appendix 1. Survey Questions and Results

 APPENDIX

Appendix 2. Focus Group Questions

Introduction: Hello everyone, thank you for the time you are giving us to take part in our research for our final capstone project. We will be asking
you some questions about the fashion and packaging industry, feel free to say whatever comes to your mind. There are no right or wrong answers!

Question 1: What does Hermes symbolize to you?What are some words you would use to describe the brand?
Question 2: What (if any) have been your impressions with the Hermes packaging that came with the products you previously purchased?
Question 3: How important do you think packaging is in influencing your perception of a luxury product?
Question 4: Do you value a packaging which is more creative or more sustainable when buying a luxury good?
Question 5: What creative or innovative packaging designs have caught your attention in the luxury market recently? What made them stand out?
Question 6: What elements or design cues would you expect to see in the packaging to ensure it reflects Hermes' brand identity?
Question 7: Can you describe a memorable unboxing experience you've had with a luxury product and what made it special?
APPENDIX

Appendix 3. Artist 1 Six Digital Illustrations

 APPENDIX
Appendix 4. In-Depth Interview Transcript with Covandonga
Date of Interview: 21/06/2023
Interviewer: Gabriel Morley
Interviewee: Covadonga Rodriguez, founder of CLO Madrid.

Gabriel: So, Covadonga, how visually appealing do you find the proposed packaging design?

Covadonga: In my opinion, the proposed design is very interesting, visually speaking, and I say this for two reasons. One, it respects tradition, which is a fundamental aspect when dealing with a brand like Hermes, which symbolizes tradition. The box color
exemplifies this respect for tradition, which I appreciate as a client and a fan of the brand.
In terms of visuals, the images and their arrangement on the box are quite correct. I believe the colors chosen, such as the orange and pink, are very immersive. When I look at the images, they remind me of the typical Hermes designs. They're very close to the
brand's spirit. However, I've always seen Hermes boxes in this style, so I'm not certain if they've created boxes with different designs before. This design seems like a novelty to me, which is exciting.

Gabriel: Do you think it aligns with the Hermes brand?

Covadonga: Yes, I think it aligns very well. Even though Hermes is classically related to themes like horses and travel, I think this packaging, with its pop elements like the balloons, matches well with the brand's spirit. It feels fresh but not disruptive, which I
think is important for brands.

Gabriel: Which image do you think works best and which one works the worst?

Covadonga: I love the balloons. They convey a lot of messages, remind me of home and travel, and feel very friendly. The sophistication of the other images also works well with the simplicity of the balloons. I would say that this adds value to the product.

Gabriel: So, do you think that this design adds value to the product?

Covadonga: Definitely, it gives value to the product. Maybe there could be some limited edition designs, which could add even more value. Perhaps the customer could have the option to customize the box to make it more personal. As it is now, the design
adds value because it's new and different.

Gabriel: Do you think that this product aligns with the proposed boxing?

Covadonga: In my opinion, there are two different visual concepts here. One is geometric and Bauhaus-inspired, and the other is a little more free in style. I feel more aligned with the geometric style. There needs to be a link between the product and the
box design, maybe through color or texture.

Gabriel: Can you explain why?

Covadonga: This geometric style is very straight and contrasts with the freer style of the product. They don't seem to coexist unless there's a link between the two designs. The colors, shapes, and materials don't seem related, so from a design standpoint,
there's no relation.

Gabriel: So, stressing the concept of travel isn't enough for you?

Covadonga: No, I don't think so. I would be more comfortable buying a box that I like, which, when I open it, also has an interior that I like and makes sense with the box.
 APPENDIX
Appendix 4. In-Depth Interview Transcript with Covandonga

Gabriel: For the interior of the box, it will have a reusable function. There would be flaps here, and it could serve another function other than storing your suitcase. For example, you could use it as a jewelry box or to store other Hermes products.
Do you think that adds value?

Covadonga: That's very good. It definitely adds value. Having the possibility of different functions is useful. You could have one large space or several divided spaces depending on your preference.

Gabriel interviewed Covadonga about a proposed packaging design for a product from the brand Hermes. Covadonga appreciated the visual appeal of the design, citing respect for tradition and interesting visuals. She liked the choice of colors and
the immersive experience the design provided. However, she noted that the product design did not align with the packaging design. Covadonga suggested that there should be a link between the two, whether through color, texture, or a common
design concept.

Covadonga was a fan of the idea of having a customizable box design and even suggested a potential limited edition for added value. She also endorsed the concept of the box having a reusable function, adding that it definitely contributes value.
She felt this adaptability would make it useful for storing other Hermes products or for other personal uses.

Gabriel: Ok, I understand and do you think that it communicates uniqueness or exclusivity?

Covadonga: No, I don’t think it communicates either to be honest. I think the main thing that needs to be bared in mind is whether the size of the box is going to fit in someone’s wardrobe or not, or in what sort of spaces this product could fit in.
Because at the end of the day, depending where I can put it, is going to influence what I put in the product. For example, if it fits in my wardrobe, I’m going to put things that are related to the things in my wardrobe, I can put other clothes, belts, etc.
Gabriel: I see what you mean, the size influences where it will go, and where you store it will influence what products go in.

Covadonga: Exactly.

Gabriel: Ok, well perfect. I think this is great. Really appreciate your time, and myself and my team really value your insights. We will keep you posted on how it goes- Thank you for your time!

Covadonga: No problem at all, and yes! Thank you.

 APPENDIX
Appendix 5. SWOT for Global Luxury Industry.

WEAKNESSES
STRENGTHS

S W
High dependance of specific
Robust growth through limited sales
markets for significant revenue
volumes, exclusive outlets and high
price points
Slow adoption of sustainability

OPPORTUNITIES
(wait) O T THREATS
(wait)
 IDP PRODUCTION PLAN*

APPENDIX Materials
(€)
Idea
Patenting
(€)
Design
Patenting
(€)
Labor
Costs (€)
Sea
Freight (€)
Truck
Freight (€)
Contingen
cy Fund
(€)
Total

JUL 23
101.809 1.325 6.375 130.041 - - 25.048 264.598

Appendix 6. Budgeting for IDP 101.809 1.325 6.375 130.041 - - 25.048 264.598
AUG 23
Production Plan
SEP 23
101.809 1.325 6.375 130.041 - - 25.048 264.598

OCT 23 101.809 1.325 6.375 130.041 - - 25.048 264.598

NOV 23 - - - 130.041 - - 25.048 155.088

DEC 23 - - - 130.041 - - 25.048 155.088

JAN 24 - - - 130.041 - - 25.048 155.088

FEB 24 - - - 130.041 - - 25.048 155.088

MAR 24 - - - 130.041 1.066 263 25.048 156.416

APR 24 - - - 130.041 1.066 263 25.048 156.416

MAY 24 - - - 130.041 1.066 263 25.048 156.416

JUN 24 - - - 130.041 1.066 263 25.048 156.416

Total 407.237 5.300 25.500 1.560.486 4.262 1.050 300.575 2.304.410

 HERMÈS MEDIA PLAN*

APPENDIX R&D
(€)
Retail
Strategy (€)
Mkg &
Comms (€)
Salaries €)
Post-Launch
Mkt Research
(€)
Contingency
Fund (€)
Total

8.333 - 44.450 98.032 - 26.977 177.793

JUL 23
Appendix 7. Budgeting for 8.333 - 44.450 98.032 - 26.977 177.793
Hermes Media Plan AUG 23

8.333 - 44.450 98.032 - 26.977 177.793

SEP 23

8.333 - 44.450 98.032 - 26.977 177.793

OCT 23

8.333 - 44.450 98.032 - 26.977 177.793

NOV 23

8.333 - 44.450 98.032 - 26.977 177.793

DEC 23

- 8.890 44.450 98.032 - 26.977 178.349

JAN 24

- 8.890 44.450 98.032 - 26.977 178.349

FEB 24

- 8.890 44.450 98.032 - 26.977 178.349

MAR 24

- 26.670 133.350 98.032 - 26.977 285.029

APR 24

- 26.670 133.350 98.032 - 26.977 285.029

MAY 24

- 26.670 133.350 98.032 25.000 26.977 310.029

JUN 24

Total 50.000 106.680 800.100 1.176.386 25.000 323.725 2.158.166