The Premium Logic of Hermes: The Theory of the Correlation between Market Segmentation Dimensions and Brand Value

Abstract

This article aims to deeply analyze the logic behind the high premium of the Hermes brand, and reveal the key factors of its success by exploring the correlation theory between market segmentation dimensions and brand value. First, the basic concept and significance of market segmentation were expounded. Then, a detailed analysis was conducted on Hermes' precise positioning in multiple market segmentation dimensions, including consumer characteristics, consumption behavior, and consumption psychology. Then it discusses how Hermes builds a strong brand value through means such as outstanding product quality, unique brand culture, and scarcity marketing, and further explores the interaction mechanism between market segmentation dimensions and brand value, as well as how this mechanism jointly supports Hermes' high premium.