By LAWRENCE TAN

French fashion house Hermès is breeding its own crocodiles to meet surging demands for its leather bags, according to its chief executive Patrick Thomas.

Speaking at the Reuters Global Luxury Summit held in Paris, Thomas revealed that the reptiles are bred on farms in Australia.

Leather goods account for 40 percent of Hermès’ revenue, and despite the global economic downturn, sales in this area have remained robust.

The group has increased its labor force in the leather department this year but still faces a massive challenge of producing 3,000 crocodile bags a year.

Thomas told Reuters: “We cannot face demand. We have massive over-demand. We are limited by our ability to train new craftsmen.

“The world is not full of crocodiles, except the stock exchange!”

Hermès

via Reuters