How Does LV President Become The Richest Man In Europe?

Last week, Louis Vuitton, the world's largest luxury goods company, released its first quarter sales report in 2019.

The report said Louis Weedon's first quarter sales grew by 11%, an increase of 16% over the previous year, reaching 12 billion 500 million euros, exceeding analysts' expectations of 12 billion 200 million euros.

At the same time, LVMH shares hit a record high. In April 11th, LVMH shares rose 4.6% to 344.94 euros, the highest level since its listing in October 1989, making the market close to $200 billion.

With the expansion of the fashion empire, LVMH group president Bernard Arnott's wealth is bigger.

According to the "2019 Hurun global rich list", the European richest person and the world's fourth are the richest people outside the Internet financial industry. They are worth about 576 billion 300 million yuan, and are two times the number of Ma Yun, China's richest man.

His net assets increased by nearly $22 billion in 2019, and Bill Gates and Warren Buffett Be in Bloomberg billionaire index had net assets of more than $90 billion.

Bernard Arnott, 70, is known as "the world's luxury Godfather" and "Napoleon of the boutique." the fashion empire he created with him has become legendary in both fashion and business circles.

The story of LV

Arnott's family has been doing business in architecture.

Influenced by his family, Nanard Arnott began to build up business cognition at a very young age, and Ferret-Savinel, a family run construction company, was also famous in French architecture. He was fascinated by art from an early age.

In 1971, Nanard Arnott, who graduated from Paris Polytechnic University, became an engineer and entered a family business.

In 1981, he traveled to the United States with his family and set up a Ferret-Savinel branch in Florida.

In 1983, Arnott returned to France. At the cost of a mortgage family business, he paid $15 million from his own family, plus $80 million from the investment company. He succeeded in winning the bankrupt Textile Group, "Bok".

The group includes Dior, a clothing and cosmetics brand that is popular all over the world.

He later admitted that the acquisition of Dior was just like Dior, because he was inspired by the ridicule of a former taxi driver in New York: "you are French, I do not know who your president is, but I know that Dior is a famous brand in France".

And he did not give up his expectations. It only took two years to bring Dior back to life.

And the real foundation of a great fashion empire is the acquisition of LVMH.

In the 80s of last century, La Camille, President of LV (Louis Weedon), found that only relying on the high-end line could not achieve the further expansion of profits, so he decided to merge with MOET & CHANDON (MOET & CHANDON Hennessy), which was then the champagne.

However, the cooperation between the two sides is not smooth and requires a middleman to coordinate. So, Arnott has just returned to China.

In October 1987, however, the French stock market suddenly collapsed and LVMH shares fell off the cliff.

At that time, LVMH was in a stock struggle. Arnott bought 43% of the group's shares at a low price, and became the largest shareholder of the company and got the absolute control of the group.

Subsequently, Arnott merged LV with MH and set up LVMH luxury group.

Later, Arnott continued to buy, from Donna Karen, pagi to Rowe, from luxury watch to Chateau, DYquem, from the only place of white wine, to Phillips auction house.

He is not only the godfather of the fashion industry, but also the elite of the shopping mall. Today, the LVHM group has become the largest boutique group in the world.

Young people are the main buyers.

From the report, most of the demand for Louis Weedon's growth comes from China.

After experiencing the impact of extravagance and waste and economic slowdown, Chinese consumers have returned.

At present, there is obviously a sense of chasing after the break up in the market, and the young people become important purchasing power.

According to the Tencent consumer data consumer insight report released in 2018 by the Tencent data lab, the average age of the millennial generation of Chinese luxury goods consumers is 28 years old, which is 10 years lower than the average age of luxury consumers in the world. About 58% of them are young people between 18 and 30 years old.

PiperJaffray, an investment bank, recently released a report on the teenager's love degree. It surveyed 8000 American teenagers about their favorite brands, with an average age of 16.3 years and an average household income of 67700 dollars.

The report shows that Louis Weedon has become the most popular luxury handbag for Z generation consumers in the US than Gucci.

According to Bloomberg BusinessWeek, Louis Weedon's designers are aiming at the millennial generation.

The luxury brand giant is trying to attract younger buyers.