Research on Pricing and Marketing Strategy of Luxury Market Based on 4P Theory  - Taking Hermès as an Example

Huawei Ouyang

doi:10.54254/2754-1169/58/20230818

Research Article

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Published on 20 November 2023

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Ouyang,H. (2023). Research on Pricing and Marketing Strategy of Luxury Market Based on 4P Theory - Taking Hermès as an Example. Advances in Economics, Management and Political Sciences,58,113-120.

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Research on Pricing and Marketing Strategy of Luxury Market Based on 4P Theory - Taking Hermès as an Example

Huawei Ouyang *^,1,

¹ Shenzhen College of International Education

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/58/20230818

Abstract

This paper embarks on an insightful exploration of pricing and marketing strategies in the luxury market, with Hermès serving as a compelling case study. The objective here is to extract valuable insights from Hermès' strategies, which can serve as a reference point for elevating the luxury quotient of other brands. To achieve this, the study leverages the renowned 4P theory to dissect Hermès' approach comprehensively. Firstly, the paper delves into the captivating enigma of why Hermès commands such premium prices. Unpacking the factors that underpin Hermès' ability to maintain its high price point is crucial in understanding its exceptional positioning in the luxury market. Equally compelling is the inquiry into the sources of its formidable brand loyalty and impeccable brand image. Moreover, this research scrutinizes the competitive landscape within the luxury marketing sphere by drawing insightful comparisons between Hermès and another industry heavyweight, Louis Vuitton. Lastly, the study engages in a discussion regarding the key success factors that have propelled Hermès to its prestigious standing. Simultaneously, it also addresses the challenges that the brand faces, recognizing that even a stalwart like Hermès encounters hurdles in the ever-evolving luxury market landscape. In sum, this paper not only provides an in-depth analysis of Hermès' pricing and marketing strategies but also offers a broader perspective on the dynamics of the luxury market. By distilling the essence of Hermès' success and acknowledging its challenges, this research seeks to inspire and guide other luxury brands in their pursuit of even greater opulence and distinction.

Keywords

Hermès, luxury management, social status, high price, exclusivity

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Cite this article

Ouyang,H. (2023). Research on Pricing and Marketing Strategy of Luxury Market Based on 4P Theory - Taking Hermès as an Example. Advances in Economics, Management and Political Sciences,58,113-120.

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About volume

Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Conference website: https://www.icftba.org/

ISBN：978-1-83558-207-7(Print) / 978-1-83558-208-4(Online)

Conference date: 8 November 2023

Editor：Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.58

ISSN：2754-1169(Print) / 2754-1177(Online)

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