娱乐英语新闻:Hermes CEO: LVMH's participation neither required nor desirable

"We do not need a big shareholder," Thomas said. "And if you give economic control to financiers, they will kill the economy because they want short-term results. Finance should be a means to develop the economy but not the objective of the economy."

Thomas stressed LVMH's increased stake would be just "a change of form rather than a substantial change."

As a preemptive move to fend off a possible takeover by LVMH, the Hermes family, holding 72 percent of the bag maker, decided last December to set up a holding company for more than 50 percent of the share capital.

Thomas described the move as a strong signal "to the outside, including to Mr. Arnault that she (Hermes) will not sell its house."

Firmly holding a strategy that differentiated itself from many peer luxury makers, Hermes choose a unique way to explore the lucrative Chinese market.

A breakdown of the brand's annual results for 2010, which rose by 19 percent in Asia, reveals that China has become the major driver behind its growth.

Hermes has 20 stores in China already with an annual expansion rate of three to four stores, much slower than LVMH. Thomas attributed the pace to Hermes' strategy of maintaining control over its know-how and distribution network.

Last September, Hermes launched its first "made for China" brand Shang Xia (meaning up and down), in which Hermes owns 90 percent of the shares.

"For us, the partnership is primarily not an economic but a cultural development project," Thomas told Xinhua.

"China has an extremely strong tradition of craftsmanship and China is booming economically," said Thomas, adding that the project is aimed to create a company with high quality craftsmanship and a strong creativity to help shape a real "Shang Xia" style.