According to a WSJ interview with Jony Ive and Hermès artistic director Pierre-Alexis Dumas the Hermés bands are made in France and shipped to China for final assembly. Ive says he reached out to Hermés last year before the Watch was announced to discuss a possible partnership and they're open to future partnerships. I must say the watch looks good on his wrist.
http://www.wsj.com/articles/apple-breaks-traditions-with-first-foray-into-luxury-1441944061
http://www.wsj.com/articles/apple-breaks-traditions-with-first-foray-into-luxury-1441944061