Before the epidemic, he was the richest man in the world. After the epidemic, he was the person who suffered the most losses in the world.
Yes, he is Bernard Arnault, the boss of luxury brand LV.
The loss exceeded US$30 billion! The person who lost the most during the epidemic
According to Bloomberg News, according to the Bloomberg Billionaires Index, LVMH’s stock price fell 19% this year, and its boss Bernard Arnault (Bernard Arnault)’s net worth has shrunk by more than 30 billion US dollars (more than 200 billion yuan), which is more money than anyone else in the world. As of May 6, he had lost about as much money as Amazon Chairman Bezos has made this year.
In January this year, Arnault replaced Amazon founder Bezos as the world’s richest man. At that time, his assets were US$116.5 billion. . Bloomberg News said on May 7 that data from the Bloomberg Billionaires Index showed that LVMH’s stock price fell by 19% this year, and Arnault’s net worth shrank by more than US$30 billion, which was more money than anyone else in the world. need more.
It is reported that due to the epidemic, most of LVMH’s fashion stores around the world have been closed for nearly 10 years. Arnault’s most profitable division has lost billions of dollars in a month; concerts and parties around the world have been suspended, nightclubs and restaurants have closed, sales of LVMH-owned champagne have dwindled; and when people wear masks, spray sprays Perfume is not so necessary anymore.
Will the Chinese save us?
Bloomberg News pointed out that LVMH’s cash reserves and sales volume have shown signs of improvement in China. The fate of the luxury goods industry, as well as the fate of Arnault, will largely depend on Depends on China. In recent years, the Chinese market has accounted for more than 1/3 of luxury goods sales and 2/3 of the growth of the luxury goods industry.
LVMH Chief Financial Officer Jean-Jacques Guillony said during an investor conference call on April 16: ” In April, the sales growth rate of major brands in China was very high. This does show that after two months of lockdown, the Chinese consumer appetite has returned to its previous state.”
The journey of the world’s richest man ends in 5 days
On January 17, Bernard Arnault, the helmsman of luxury goods group LVMH, aspired to become the world’s richest man. Its magnificent moment also heralds the high-profile honor of the entire luxury goods industry and the market’s general recognition of the value of high-end luxury brands. You know, there are only three names left in the hundreds of billions of dollars club: Amazon founder Jeff Bezos, Microsoft founder Bill Gates, and Bernard Arnault.
But four days later, on January 21, Arnault fell from his throne.
“Twenty-five years before Arnault, there were only five richest men in the world: Bill Gates, Buffett, Carlos, Ortega and Bezos.” Partner in a consulting firm According to Gu Xiaoshuai (pseudonym), “becoming the richest man” means that it is in line with the development direction of the times and represents most people’s expectations for the future.
Arnault’s rise to the top of the world’s richest man once indicated that the market is extremely optimistic about the future prospects of luxury goods.
This is indeed the case. In 2019, the luxury goods industry bucked the trend and rose against the backdrop of a general slump in the global retail industry, with the world’s three top luxury goods groups performing eye-catchingly. LVMH Group’s share price rose by more than 60%; Kering Group’s share price rose by nearly 50%, with its market value reaching a record high; Richemont Group’s market value increased by more than 20%.
Behind the numerical growth, it is inseparable from the “strong help” of Chinese consumers.
Data show that in 2019, the global luxury goods market grew by approximately 2.2 trillion yuan, 90% of which was driven by the Chinese market. With 18.5% of the world’s population and 16% of the world’s GDP, China drives 35% of the world’s luxury goods consumption market.
In addition, according to a McKinsey research report, from 2018 to 2025, the average annual compound growth rate of China’s upper-middle-income households will reach 28%. In other words, the luxury consumption potential of Chinese consumers is still in the growth stage.
LV prices have increased again
According to Beijing Business Daily, 5 On March 5, many fashion bloggers on Xiaohongshu were “accusing” LV of its second price increase in the past six months. “The price has already been raised once on March 4th this year! I just saw SKP’s sales post on WeChat saying that prices will be raised across the board on May 5th! I’m confused. All donations made by LV during the epidemic will be from consumers. Are you going to get it back?” Some bloggers even posted screenshots of chats two or three days ago about brand sales “warning” about price increases, confirming that the source of the news is reliable and reminding everyone to buy as soon as possible.
Customer service staff said that the scope of this price increase is not limited to handbags, but involves the brand’s entire line of products. Are prices rising in regions other than China?Including other regions, customer service said “cannot be sure.” As for the reason for the price increase, customer service also said it was “unclear” and said that “brands sometimes increase prices based on tax rates.”
This is LV’s second price increase since March this year, with an interval of only two months. Some netizens described such frequent price increases as “crazy” and felt like “stealing money.”
Due to the emergence of the epidemic this year, the luxury goods market has continued to decline. Leading luxury brands including LV and Gucci have been unable to withstand the pressure of the epidemic, and their performance has plummeted. While other brands are looking for ways to boost sales, LV bucks the trend and continues to raise prices.
The reason behind this may be that in the first fiscal quarter of this year, LV parent company LVMH Group’s sales fell for the first time in nearly 10 years, with a drop of as much as 15%. CEO Bernard Arnault emphasized that at the moment, the group The difficulties faced are “unprecedented”, and the US$16.2 billion acquisition of the American luxury jewelry brand Tiffany, originally scheduled to be completed in the middle of this year, will also be delayed until the end of the year. As China’s luxury goods market gradually recovers, LVMH begins to pin all its growth hopes on the Chinese market.
Bernard Arnault is known as the godfather of luxury goods in the world
Then let us Let’s get to know the new world’s richest man, Bernard Arnault, also known as the godfather of luxury goods in the world.
Arnault is the head of LVMH, the world’s largest luxury goods group. He is known as the “Pope of Fashion”, the Napoleon of the boutique industry, and the godfather of luxury goods in the world. Born in a French industrial family in 1949, he graduated from the Ecole Polytechnique in Paris in 1971 and entered the Ferret-Savinel construction company founded by his father as an engineer. In 1981, Bernard Arnault went to the United States to develop his career, and returned to France in 1984. At that time, Dior was in a period of crisis. Bernard Arnault mortgaged his family business and acquired Dior. Afterwards, Bernard Arnault became the chairman of the board of directors of Dior and started his own luxury goods empire. road. In 1987, led by the Bank of France, the world-famous leather goods company Louis Vuitton merged with the wine family Moët Hennessy to form LVMH, whose full name is LVMH Moët Hennessy Louis Vuitton SE. In October of that year, when the stock market crashed, Arnault acquired LVMH’s shares at a very low price. Through Dior, Arnault quickly controlled 43% of the LVMH Group’s shares and became the largest shareholder.
After taking over LVMH, he merged its Louis Vuitton (LOUIS VUITTON) with Moet (MOET) and Hennessy (HENNESSY) to form Today’s LVMH empire. Bernard Arnott’s aggressive acquisition methods have frightened the industry.
In the following 30 years, LVMH, under the leadership of Arnault, “swooped in” when the economy fell into a trough or the company had internal conflicts and acquired a large number of luxury brands until it achieved success. Today, the world’s largest luxury goods group owns 75 luxury brands including Louis Vuitton, Céline, Givenchy, Fendi, and Kenzo.
Bloomberg Business Week reported that Louis Vuitton’s designers are targeting Millennials. The luxury brand giant is trying to attract younger buyers.
According to Bloomberg reports, Chinese consumers’ demand for Louis Vuitton bags and Hennessy Cognac has greatly increased the sales of LVMH Group. This has caused LVMH’s stock price to rise sharply in the face of an increasingly tense international trade environment.
According to 2017 Hurun data, half of LV’s global sales are bought by Chinese. According to data from that year, China’s luxury goods sales reached RMB 142 billion (approximately US$22.07 billion) in 2017. </p
