Hermes kicked off 2025 with steady gains on the books, but the sheen dulls when you zoom in—especially in Asia. The French luxury house logged a 9% year-on-year increase in first-quarter revenue, totaling EUR 4.13 billion (USD 4.4 billion). Yet beneath those topline numbers, its largest market by potential—Greater China—continues to sputter.
Revenue in Asia excluding Japan grew just 1.2% to EUR 1.97 billion (USD 2.1 billion), marking a sharp slowdown in a region that once buoyed the brand’s global expansion. Hermes cited a “downturn in traffic in Greater China” as a key factor. This tepid performance stood in contrast to double-digit gains in other regions: Japan rose 17%, France climbed over 14%, and both the Americas and Europe posted robust growth.
“In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever,” said executive chairman Axel Dumas in a statement, nodding to the company’s vertically integrated, craftsmanship-driven model. But those fundamentals are now being tested not only by quieter storefronts, but also by louder whispers online.
Lately, viral TikTok clips—many featuring self-proclaimed Chinese factory owners—claim that bags for Hermes, Louis Vuitton, and Dior are being mass produced in China, then shipped to Europe for minor finishing touches. These tweaks, the creators say, allow luxury labels to slap on “Made in France” or “Made in Italy” tags, even when most of the work happened elsewhere. One oft-repeated claim suggests a USD 38,000 bag costs around USD 1,400 to produce.
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Though many of the claims remain unverified, they arrive at a precarious time for Hermes, which has already faced waves of copycat culture. In February, Walmart was found selling an USD 80 lookalike of the brand’s iconic Birkin bag, prompting Dumas to decry the trend as “stealing someone else’s work.” Yet, he also admitted to feeling conflicted. “People know the difference in quality… in a way it’s a compliment,” he told The Business of Fashion.
Quality has long been Hermes’ calling card. Its signature bags are crafted in France, often requiring 15–40 hours of artisan labor. Artisans must undergo up to five years of training before they are allowed to touch a Birkin or Kelly. The brand owns its tanneries and operates workshops in Pantin, Ardennes, Normandy, and beyond. Each piece is hot-stamped with a unique code that traces it back to a specific maker and workshop.
These practices not only meet but exceed labeling requirements set by US and European regulators, which stipulate that a product’s final substantial transformation must take place domestically for it to carry a “Made in” label. Hermes also adheres to France’s stricter OFG (Origine France Garantie) certification, which requires that at least half of a product’s unit cost be generated within the country.
Despite the growing buzz online, there is no verified evidence that Hermes’ production deviates from these standards. Still, the brand finds itself in a bind: facing digital-age scrutiny, social media rumors, and viral misinformation, all while trying to maintain the aura of exclusivity and craftsmanship that underpins its high margins.
Meanwhile, performance varied across other product lines. Leather goods—the company’s bread and butter—grew 10% year-on-year. Ready-to-wear items climbed 7.2%, and categories like jewelry and home goods inched upward. But watches fell by 10%, and perfumes dipped 0.5%, signaling uneven appetite among consumers.
Hermes said it remains confident in its long-term play. New workshops are on the way in Charente, Gironde, and Ardennes, with openings scheduled through 2027. But even as it doubles down on heritage and handcraft, the brand must steer through a digital landscape where authenticity is swiped into question, and a short video clip can recast a reputation overnight.