[imagesource:luxity]

The luxury goods market in Europe is booming thanks to China. This is despite continuous reports of stressed financial markets and a poorer middle class.

Luxury goods giants such as Louis Vuitton, Moët & Chandon, and Hennessy as well as brands including Givenchy, Bulgari and Sephora stores have recorded a 17% increase in first-quarter sales for 2023, and in a large part, this is the result of the East easing their Covid related restrictions on travel.

Record spending has now made the parent company to these brands, LVMH, the first European company to reach $ 500 Billion in market value.

The Paris-based firm has said it is set to benefit from China’s Covid reopening as the return of travel brings back high-end spenders.

Chinese consumer spending has also boosted the market value of other luxury brands such as Richemont, Burberry, and Kering.

All this spending on pretty dresses and gold handbags means that LVMH CEO Bernard Arnault is now the richest man alive, with a cushy net worth of $240 Billion (R 4.4 Trillion). His empire includes fashion, jewellery, and alcohol, including TAG Heuer, and Dom Pérignon.

He must smell amazing.

It seems that LVMH is on a quest to monopolise luxury, even going as far as buying Tiffany & Co for $15.8 billion (R285 Billion) in 2021. The LVMH empire consists of 75 fashion and cosmetics brands.

With five children who are all involved in various positions within the LVMH group, Arnault’s life must resemble the tv series Succession, but hopefully, his family gets along a bit better. And yes, as a billionaire, he does own a 101.5 m mega yacht called Symphony too.

It may be tempting to be critical of a man that makes so much money by selling perfumes, watches and R 43 000 yoga mats, but considering that it’s the rich that make him rich, we can’t really find fault with his business model.

Somebody has to cater to the wealthy, as long as they don’t sell baby sealskin leather purses.

[source:cnbc]