New leather goods factories will help Hermès meet handbag demand

As demand for its luxury handbags soars, Hermès has opened three leather goods factories in France where the Paris-based house can beef up production of its Kelly and Constance bags.

With supply chain woes affecting all areas of the fashion industry, Hermès has invested heavily in local manufacturing to increase its output in order to meet demand. A Constance shoulder bag, despite its price of 6,500 euros, is a sought after item across the maison’s 300 stores.

Last week Hermès chief executive Axel Dumas inaugurated its latest facility in Louviers, near Rouen, about 135 km northwest of Paris. As the 21st Hermès workshop, it will produce leather goods and horse riding saddles, according to French news outlet Le Monde.

Increasing capacity has led to Hermès opening 10 leather goods factories over the past three years. Last year alone the group invested 192 million euros in these facilities, said Le Monde. Two further openings are planned for this spring, with three others under construction and scheduled to open in 2024, 2025, and 2026.