Why is Hermès so profitable?

Could you explain the underlying factors that contribute to Hermès' exceptional profitability? Are their luxury products, which are often seen as status symbols, driving their success? Or is it their meticulous craftsmanship and attention to detail that sets them apart from competitors? Additionally, how does their strategic marketing and brand positioning play a role in maintaining their profitability? I'm particularly interested in understanding the dynamics of their business model and how they've been able to sustain such a high level of profitability over time.