“It’s not just headphones. It’s the sound philosophy that Hermes is pursuing, and it’s a major transformation into the field of technology.”
Hermès, a global high-end brand, unveiled its $15,000 wireless headphones on the 29th.
Hermes, which started as a store for goods in 1837 and is said to have achieved the peak of leather craftsmanship, is the first headphone introduced in 188 years since its foundation. Majority of analysts say that it is a symbolic event that clearly shows where the next battleground is in the luxury goods industry. “Headphones have been functional audio devices, but they will now serve as design objects,” Hermes said on Monday, according to the U.S. news agency CNET. “We will interpret sounds sensibly and present new sounds.”
The Hermes’ first headphones, which are close to the price of a small car, are the result of two years of development by the ultra-high-priced customization department “Atelier Orizon” operated by Hermes.
According to Hermes, about 50 professional craftsmen in each field carry out the entire process on their own to apply the sound aesthetics pursued by Hermes. The outside of the headphones is decorated with hand sewing that finishes the women’s bag “Kelly Bag,” which symbolizes the brand. Metal parts and leather are also made of the same material as the Kelly bag.
It is interpreted as a willingness to overcome technical limitations by projecting craftsmanship from the product planning stage beyond simple assembly of parts.
Hermes’ “surprise” challenge to the IT industry is actually close to a foregone conclusion. Major luxury brands have already been engaged in a silent tech war for years.
Since 2019, Louis Vuitton has been collaborating with the audio brand “Master & Dynamic” to steadily introduce high-priced earphones that cost more than 2 million won in the late 1 million won range. These products have become popular with celebrities such as actor Cha Eun-woo and soccer player Son Heung-min over the years, contributing significantly to strengthening the young and sophisticated brand image.
Chanel has also tried to break down the boundaries between technology and fashion by using expensive earphone accessories known to be worn by idol group Black Pink member Jenny and limited-edition collaboration with IT peripheral brands in the past. The MZ generation, which has emerged as a main focus of luxury consumption, focuses on experiencing and feeling value for brands in daily life rather than traditional ownership-oriented conspicuous consumption.
Instead of using expensive bags or clothes only on special days, they secretly reveal their tastes and values through headphones and smart watches they use every day.
“A new form of ‘social signifier’ is strongly remembered among young wealthy people, such as expensive headphones rather than bags or shoes that are immediately visible,” said DeFemin, a fashion media outlet.
Products that were focused on by existing high-end brands, such as leather products and clothing, have stagnated in growth due to concerns over a recent economic slowdown.
French luxury goods company Chanel announced on Tuesday that its sales last year amounted to 18.7 billion U.S. dollars, down 4.3 percent from a year earlier. Its operating profit dropped by 30 percent. Chanel’s sales and operating profit fell at the same time in four years since 2020, when its stores were not properly operated due to the pandemic.
Experts evaluated that high-end brands are “IT-flipping” in order to pioneer new markets, secure sustainable growth factors, and extend their vitality. IT devices are good to continuously give fresh and innovative images to brands due to rapid technological changes.
They do not put absolute technological superiority ahead of them like Samsung Electronics and Sony. Instead, it focuses on giving consumers differentiated satisfaction by mixing the unique and emotional values that high-end brands have accumulated so far with technology.
Like Louis Vuitton, technology complements weaknesses by partnering with specialized companies, and brands often use strategies to focus on design and marketing, Bloomberg said.
Consumer reactions to high-priced brands’ millions to tens of millions of dollars in IT devices are still sharply divided.
On the other hand, there is a passionate support from consumers with high brand loyalty and curiosity about how music feels to listen to expensive headphones.
On the other hand, there is a critical view that excessive price bubbles are confusing the market and that it is a superficial product that focuses on logo prices rather than sound quality.
“Just as Hermes predicted the expansion of audio lineups such as speakers and DJ tables in the future, such an attempt is not a temporary trend, but part of a long-term brand strategy,” the fashion media Hyperbeast quoted experts as saying, “It is an ambitious challenge to expand the definition of luxury into the technology era.”
SALLY LEE
US ASIA JOURNAL
