Laurent Dordet, CEO of Hermès Horloger, on the brand’s impressive growth

Hermès, a French luxury powerhouse still largely owned by the founder’s direct descendants (the Hermès dynasty and the Dumas family), is in a class of its own. The same applies to the group’s watch division. Hermès watchmaker. Hermès, a discreet giant of the watch industry, has experienced impressive growth in recent years. With sales of over 600 million euros in 2023, up 23% at constant prices, Hermès is once again outperforming the industry… and now ranks close to the top 10 largest Swiss watch brands (according to Morgan Stanley estimates). The publication of the group’s 2023 results was the perfect opportunity to interview Laurent Dordet, CEO of Hermès Horloger.

Xavier Markl, MONOCHROME – At 611 million euros (and an increase of 23.2% at constant prices), Hermès watches deliver pretty impressive results and significantly outperform the market. What were the drivers of this growth?

Laurent Dordet, CEO Hermes Horloger – Hermès watchmaking has actually done very well over the last four years. In 2023, our métier has confirmed a good performance, with a growth of 23% compared to 2022, based on unique creativity and exceptional watchmaking know-how, both in complication models (e.g. Arceau Le temps Voyageur) and in the house’s iconic designs, such as Cape Cod. The Hermès H08 line, which recently launched several new models, has been a huge success.

We follow our path and our long-term strategic vision, focusing on people, craftsmanship, creativity and the quality of all the products we produce. We can only achieve such values ​​if we remain true to our values ​​and our origins.

What sets Hermès watches apart?

Hermès watches offer a different interpretation of time: time is not a limitation and does not necessarily have to be measured. Instead, the period is full of imaginative details that go beyond style; Time is a friend that tells stories and awakens emotions. We often say that at Hermès we take things seriously without taking ourselves too seriously.

This unique interpretation, which goes against the industry trend, is supported by our watch models such as the Arceau L’heure de la lune or, more recently, Arceau Le temps Voyageur.

Watchmaking is a competitive industry with many players. We have worked a lot on our legitimacy and uniqueness, they have been strengthened worldwide in our Hermès watch collections. Since La Montre Hermès was founded in Switzerland in 1978, we have never stopped developing our craftsmanship internally and for many years we have been happy that we are 100% Swiss made and our components are made in-house. Every year we develop new, specific designs with a recognizable style, imbued with Hermès DNA, offering new materials and new shapes.

Hermès is a house of creation whose 16 métiers are full of freedom and boldness, inspiring customers’ dreams. With their unique stylistic expression, our collections all share the same functional aesthetic and embody the pursuit of excellence in quality and ethics. Philippe Delhotal (Editor’s note: Watch our video interview with him here), our Creative Director, has a lot of freedom when designing. Here at Hermès, technology is at the service of creation, which means no compromises are made when it comes to design. This allows us to offer our customers both our unique complications and sophisticated Métier d’Art pieces with playful and colorful drawings.

We have a unique approach to time; Our desire is to share emotions with our customers and offer them something they cannot find anywhere else.

Hermès embodies the height of Parisian chic; Your security operations are managed from Switzerland. How does this affect your creative process?

When Jean-Louis Dumas decided to create the watchmaking profession in 1978, he chose to settle in Switzerland, close to the artisans and crafts, in the birthplace of watchmaking. Back then, he demanded two things from his teams: the first was to be at the same level of quality as the most established players in the industry and to strive for excellence. The second goal was to be as diverse as possible in terms of styles, shapes and designs.

Over the last 20 years, we have established ourselves as a true watchmaker with integrated craftsmanship by acquiring historic partners for cases and dials and acquiring a 25% stake in Vaucher Manufacture Fleurier, which has enabled us to launch our manufacture movements.

From a creative perspective, Philippe Delhotal and his team are based in Switzerland, as close as possible to production, for better agility. He is also in constant contact with the other artistic directors of Hermès under the responsibility of Pierre-Alexis Dumas. Hermès’ watchmaking journey has always been dreamy, challenging and full of imagination. The freedom to create, the constant search for beautiful materials and the transmission of exceptional craftsmanship – which enables the creation of useful and elegant objects that stand the test of time – characterize the uniqueness of our house. Our watchmaking is Swiss Made with French style.

The start of the The Hermès H08 collection was an important step three years ago. What role does the model play in your collection?

We have big ambitions for the Hermès H08 line. As part of the strategic strengthening of our men’s range, these new models are all equipped with a manufacture movement. First and foremost, H08 is about style, a unique creation strongly rooted in the Hermès men’s world as imagined by Véronique Nichanian and Philippe Delhotal.

The house likes to play with proportions, shapes, volumes and material mixes. Geometry is part of Hermès’ vocabulary of shapes. This sporty watch with versatile wearing comfort has become a strong collection in our offering. Since 2021, we have been adding new expressions and innovative materials to this line every year.

Watches and Wonders Geneva 2024 is getting closer and closer. What significance does such a platform have for Hermès and the industry in general?

Watches and Wonders Geneva is a significant moment for the entire industry. This is a good opportunity to bring together the international press, partners, customers and professionals. For Hermès, it is a key moment that allows us to propose every year an immersive scenography, created with a different artistic partner, to express the Hermès period. It is a perfect setting to highlight our creations and craftsmanship and share our watchmaking philosophy.

On the production side, Hermès Watches has expanded its operations over the years, internalizing several métiers and establishing important partnerships. What were the most important steps in this development?

Hermès began its integration strategy in 2006 by purchasing a 25 percent stake in Vaucher maker Fleurier (movements). In the same year, the leather workshop at the La Montre Hermès SA location in Brügg was inaugurated and supplemented the assembly workshop founded in 1978.

Since then, Hermès Horloger has acquired two historical partners, Natéber (dials) and Joseph Erard (cases), in 2012 and 2013 to found Les Ateliers d’Hermès Horloger in Le Noirmont in 2017.

Today, Hermès Horloger is a full-fledged watch manufacturer, mastering all skills in-house and producing 100% in Switzerland, while remaining true to the company’s strong values ​​and authenticity.

What are your biggest challenges?

Hermès watchmaking is a dynamic profession. As a creation house, we strive to maintain this momentum by continuing to design new models and reinvigorate our existing collections. This wealth of creativity is essential and an integral part of our watchmaking ambitions.

Something more personal. Which watch have you been wearing the most lately?

I love wearing my Hermès H08 in woven and aluminized fiberglass, charged with slate gray power and green accents. I particularly like the comfort and ergonomics of this case and rubber strap, as well as its style.

Further information can be found at hermes.com.