Looking Back to Move Forward

Is a Hermès Apple Watch worth it if you want  to be wearing Hermes on your wrist? Let's discuss it. 

When two brands, when two worlds, come together, the results are always interesting. But when the brands in question are Apple and Hermès — two companies with histories as different as their creations — co-branding strategy is going to be headline news. For the first time in its history, the Hermès orange box is sharing space with another brand – Apple. 

Pierre-Alexis Dumas, executive vice president of artistic direction at Hermès, said the partnership with Apple was consistent with the company's aim to create "elegant, creative, and functional objects" for customers' everyday lives.

Hermès CEO Patrick Thomas, commenting on his company's new partnership with Apple, said, "I see this as a perfect team"—as if he were referring to a racehorse and its jockey.

The Apple Watch Hermès, the first smartwatch designed in collaboration with a fashion house, is strung with stainless steel, and features Hermès's exclusive leather straps. The luxury timepieces are housed in bespoke cases created from traditional Hermès birch bark-tanning techniques. There are three models in the Apple Watch Hermès series: 

Single Tour

Double Tour 

Manchette

There are options with a classic strap, a double leather strap that wraps around the wrist, and a wide cuff. For Manchette, this motif was chosen as a reference to the shape of the horse's girth, and the strap is crafted from Hermès signature leather.

Authenticity dilemma:

The Apple Watch Hermès is a perfect illustration of the paradoxes that have shaped Apple's approach to fashion. The most expensive watch Apple sells at the price range from $1,299 to $1,759 isn't even made of precious metal. Apple is not known for making stuffy, old luxury goods like those made by Hermès. The reasonable question that comes to mind of many people is “who is Apple to stand next to such a luxury company?”

Positive and negative influence:

The positive influences are following:

• Increased brand awareness of Hermès due to the large volume of Apple’s  sales and it’s general high level of awareness

• Younger generations’ attention (since Hermès is a  very classy and elegant brand it appeals to and is affordable for older people)

As for the negative ones:

• Relatively low price for the Hermès piece can jeopardize exclusivity of the brand which is what Hermès is very famous for (with their Birkin Bags for example)

• The connection between Apple and Hermès is not really clear for an ordinary consumer because Apple Watch is associated with everyday accessories or even sports while Hermès leather obviously is not and when a customer has more questions than answers he/she most probably is not very satisfied.

Rational:

For Hermès, a brand whose timeless appeal has made it an everlasting favourite of luxury buyers, the co-branded watch with Apple is a way to inject freshness and modernity into the storied name.  Similarly, Hermès's appeal can easily start to appear tired and uninteresting. This limited partnership with Apple keeps Hermes very much in the vanguard of luxury—while also staying true to their traditional strengths of leather-goods design.

The partnership is a clear signal for Apple that its brand has evolved into a luxury brand, i.e. a fusion of technology and design.

The “spillover effect” in a co-brand relationship—the possibility of using such partnerships to increase product sales while simultaneously increasing each brands equity as part of the process—has proven to be
so promising that many companies have attempted to use it.

The limited edition watch was undoubtedly a popular item. The longer term value, however—the brand associations created for Apple that come from the company's partnership with Hermès — certainly outlasts and outweighs any of the short term sales benefits.

Hermès states that the company "strives to provide customers with elegant and functional accessories for everyday life." Therefore, cooperation with Apple is a logical continuation of the mutual pursuit of excellence. While making people’s lives better with mastering technology is Apple’s mission, Hermès tries to achieve the same goal by providing products that are at the same time functional and aesthetically awesome. 

How to solve the dilemma:

Since this collaboration takes place every year with every new model of Apple Watch, our recommendation would be to educate the customers more so that they understand the rationale behind this collaboration.  By doing so, we believe that both brands will win over the customers and gain even more credibility, which refers to the brands’ honesty and transparency. 

Sources:

Apple and Hermes collaborate on exclusive smartwatches. (2015, September 10). Marketing Magazine. https://www.marketingmag.com.au/news-c/apple-hermes-collaborate-exclusive-smartwatches/

DeBord, M. (2015, September 10). Apple’s new partnership with Hermès makes it clear the tech company has no idea what the Apple Watch is supposed to be. Insider. https://www.businessinsider.com/apples-hermes-partnership-2015-9?r=US&IR=T

Here’s what’s really going on with Apple’s partnership with Hermès. (2015, September 11). Business Insider. https://www.businessinsider.com/apples-partnership-with-herms-is-about-working-more-closely-with-the-world-of-fashion-2015-9?r=US&IR=T

O’Hara, A. (2021, November 11). Hands on with the luxury Hermes Apple Watch Series 7. AppleInsider. https://appleinsider.com/articles/21/11/11/hands-on-with-the-luxury-hermes-apple-watch-series-7

Riley, T. (2018, May 7). The Apple Watch has a secret weapon that helps it dominate the market. CNBC. https://www.cnbc.com/2018/05/03/apple-watch-has-a-secret-weapon-that-helps-it-dominate-the-market.html