The Hermès Family: When $7 Billion Goes To Your Gardener

Описание: The Hermès Family's net worth soared to $151 billion in 2023 - while one heir is attempting to leave around $7 billion worth of shares to his gardener... by adopting him.

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TIMESTAMPS:
0:00 Introduction
2:20 Chapter 1: The Wealth of The Modern Hermès Family
5:42 Chapter 2: How Hermès Makes Money
9:03 Chapter 3: Thierry Hermès - The First Patriarch
11:39 Chapter 4: The Second Generation Takes Control
16:06 Chapter 5: Going Global With Hermès
20:06 Chapter 6: Saving Hermés From LVMH

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In the captivating saga of the Hermès family, a significant twist emerges with Nicolas Puech, the 80-year-old heir of the Hermès dynasty, contemplating an unconventional bequest of his substantial fortune.

Valued at approximately $13 billion, Puech's decision diverges from the norm of allocating wealth to family members or charitable foundations.

Instead, he contemplates entrusting a significant portion of his fortune to his gardener, a 51-year-old father of Moroccan descent, who has become an integral part of his life, akin to an "adopted son."

Initially, Puech intended to donate his entire fortune, including his 5.7% stake in Hermès, to the Isocrates Foundation, a charity dedicated to supporting journalism.

However, in a dramatic turn, he now seeks to redirect about $7 billion in shares to his gardener, considering adopting him to facilitate this transfer.

This decision stands at a crossroads, with potential implications for both the Foundation and the gardener's future.

The Hermès family, consisting of the Dumas and Puech clans, has crafted an empire in the luxury fashion world.

In 2023, their net worth surged by $56 billion, largely due to their control over Hermès, which saw its share value increase by 35%, boosting their overall fortune to an estimated $151 billion.

At the forefront of this success is Axel Dumas, a sixth-generation family member, who has propelled Hermès to new heights since becoming CEO in 2014.

His focus on international expansion, especially in Asia, has been instrumental in the brand's growth.

Bertrand Puech, Nicolas' brother, has also played a vital role in maintaining Hermès's independence, notably fending off a potential takeover by LVMH and its founder Bernard Arnault.

The family, consisting of over 100 members, collectively owns a significant portion of Hermès, reflecting their deep influence over the company's direction and legacy.

Looking to the future, the Dumas side of the family plans to launch a family investment structure in 2024, indicative of their strategic diversification and enduring impact in the luxury fashion industry.

The Hermès brand, renowned for its exclusivity and craftsmanship, has thrived by maintaining a low marketing profile, focusing instead on invitation-only sales and exceptional product quality.

This strategy, coupled with the rarity of their products, particularly the Birkin and Kelly bags, has led to an appreciation in their value, distinguishing Hermès in the luxury market.

The story of Hermès, from its inception by Thierry Hermès in 1837 to its current global prominence, is a tale of adaptation, innovation, and familial stewardship.

It's a journey marked by strategic diversification, exceptional craftsmanship, and a steadfast commitment to luxury and exclusivity.

In this context, Nicolas Puech's potential decision to pass on billions to his gardener is not just a personal gesture but a reflection of the unique and sometimes unpredictable nature of family legacies in the world of high fashion and luxury.

Whether this decision materializes or not, it adds another intriguing chapter to the Hermès family's rich and storied history.