LVMH Group CEO: Views On Long Term Consumer Trends

According to the world clothing shoes and hats net, France

Tycoon

CEO Bernard Arnault, chairman of the board of directors of the group, recently received an exclusive interview with local media in Japan about her own views on the problems of Britain's European Union, European elections, the spread of trade protectionism in the world, and the long-term consumer trends in Asia and other regions.

Global economy

Bernard Arnault has interpreted the global economic situation from four aspects: economic crisis, capital, stock market and exchange rate.

First of all, he reiterated his view that an economic crisis will erupt in recent years.

"We are in a very special period.

As for my observation, there will be an economic crisis every 10 years.

The last economic crisis happened in 2008. Although I am optimistic about it for a long time, we are approaching a ten year without seeing any signs.

Therefore, if there is a massive economic crisis around the world, I will not be surprised.

But I can't confirm the specific time, because I have never experienced today's situation: global interest rates are close to zero.

Bernard Arnault believes that sufficient funds in the market and large sums of money put into the central bank make the global capital flow huge.

The high valuation of the global stock market (which means a partial asset valuation is too high), the exchange rate fluctuations of currencies such as the US dollar, euro and yen are all potential risk factors.

Bernard Arnault said the global economic situation will be right.

Business has a certain impact.

He believes that a major economic crisis lasting several months or years will come.

We must be very careful when managing a large international group such as LVMH.

If there is an economic crisis, some markets will be negatively affected, but crises and opportunities will coexist.

Britain off Europe

Bernard Arnault said that in the long run, Europe will have a negative impact on the British, but they have not found it yet.

"Perhaps it is because Europe is too bureaucratic, so we decide to take (off Europe).

I think this is a mistake made by the British and hope that they can make progress in this process.

Perhaps Europe can pform itself.

Since realizing that bureaucracy is too heavy, Europe has begun to change.

Perhaps at the same time, the British realized that the decision was a mistake.

So it's hard to say.

The recent political situation is also changing.

The French general election is coming soon (Bernard Arnault has been publicly voicing support for Ma Kelong), and the German general election has also entered the agenda.

After these elections, the situation in Europe will change dramatically.

The election results could also change the situation between Britain and Europe.

Today's elections are highly uncertain, and voters can change their minds until the last second.

The influence of current Bureau on the consumption pattern of high-income consumers

Bernard Arnault believes that in the long run, the purchasing power of the world will continue to rise, but there may be a downturn like that in 2009.

"But overall there is a growth trend.

This is why I am optimistic about the long term. "

Bernard Arnault points out that the purchasing power and living standard of many countries will continue to grow, and the demand for high quality products will also increase.

"This is also one of the reasons for the success of the LVMH group. It is also the reason why I am optimistic about the future.

With regard to what is happening in the world, I think the current situation is very complicated.

We have experienced so many crises, so even if there is a crisis now, we will overcome the difficulties and gain more market share. "

Slowing growth in emerging markets

Bernard Arnault acknowledged that the growth rate of emerging countries is slowing, but still faster than that of developed countries.

"For China, China's GDP growth is 6 to 7%, and Europe is 1%."

The economic growth of emerging countries stems from the successful trade opening policies of these countries.

Bernard Arnault believes that trade liberalization in emerging countries will continue, but in recent months, there will be no further increase in concerns about trade protectionism.

"Because (trade protection) is not in line with the interests of developed countries and emerging countries such as the United States and Europe.

Therefore, I am very confident about the fairly open international trade situation.

We will continue to witness economic growth.

Even if the slowdown is still positive, at least for us, we still provide a lot of opportunities. "

Ginza and Japanese customers

Bernard Arnault said: "Ginza is Japan and even the world's most famous tourist attractions and high quality products consumption place.

Interestingly, when you go to Ginza, you will find that the upbringing and safety standards in Japan are first-rate.

In the evening, you can walk on the street or take the subway safely.

Today's Paris is impossible, so it's dangerous to walk in the middle of the night at Champs Elysees.

Visitors from Europe to Ginza will be surprised at this.

The highest standard of service, friendly people and safety are the treasures of Japanese tourism. "

In April of this year, Ginza Six, the largest shopping mall in Ginza, was opened, and LVMH group was one of its four largest investors.

The Japanese government is actively promoting tourism and economic growth. For luxury goods groups, Japanese consumers are very important.

"Japanese customers pay attention to quality, and our products can be successful elsewhere if they can get the favor of Japanese consumers.

Japanese customers should be the most fastidious group in the world.

The success and growth of the Japanese market is very important for us.

Bernard Arnault said.

The latest Japanese luxury market research report points out that every year, the Japanese market contributes nearly $100 billion in sales to Chanel, Dior, Prada and other luxury brands, and is still the second largest luxury market in the world after the United States (for domestic consumption).

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