LVMH Group Chairman Bernard Arnault: We Have No Intention Of Selling Pucci.

Last Wednesday, the French luxury goods giant LVMH announced its latest quarterly report in fiscal 2019, which has made many innovations.

Encouraged by this good news, Thursday's group's stock price climbed to a record high.

Recently, LVMH group held the annual shareholders' meeting. At the meeting, Bernard Arnault, chairman of LVMH group, said: "I am very optimistic about long-term expectations, but we must note that the LVMH group's rapid growth in the world may continue for another ten years, but it will not last forever.

We must continue to invest in quality and not sacrifice product quality in order to accelerate growth. "

During the conference, a number of personnel appointments were made: the founder of the Good Planet foundation, photographer Yann Arthus-Bertrand will be a consultant to the board of directors, brand Chassat and business philosophy expert Sophie Chassat; Warner Bros., President of France, Iris Knobloch has become a new member of the board of directors.

Bernard Arnault stressed: "our group attaches great importance to family elements. We are not managed by anonymous investment groups, but a family. All the brands are part of the family. We also hope to continue to uphold this spirit in the future."

Arnault's three children, Delphine (general manager of Louis Vuitton) Antoine (CEO of Berluti, President of Loro Piana) and Alexandre (Rimowa of Piana) also attended the board.

Arnault also stressed that the proportion of male and female executives in LVMH group will soon reach one to one.

Brand performance

In the financial year, the fashion and leather goods department of LVMH group's flagship brand Louis Vuitton (Louis Weedon) has the most brilliant performance.

Sales grew by 20% to 5 billion 110 million euros, a five year high with an organic increase of 15%.

In March last year, Virgil Abloh, the founder of the famous Chao Off-White, formally joined Louis Vuitton and became the new creative director of men's wear.

Arnault said: "every product he designs is shocking, and within a few hours he will be fired online to a higher price.

Although this is not our intention, it shows the popularity of his product. "

Virgil Abloh's first season product 2019 spring and summer men's wear series has not yet been officially launched, but sales in flash stores have shown unprecedented heat. Sales in 48 hours are 30% higher than that in the joint series of Louis Vuitton and New York Chao Supreme in 2017.

Arnault also revealed that the luxury brand Fendi of Fendi group (Fendi) will hold a memorial show in Rome in July this year, displaying the work of Karl Fendi, the design master who has just passed away, and the creative director of Fendi.

Karl Lagerfeld entered the Fendi in 1965 and served the brand for more than 50 years.

Arnault said: "Karl's departure is a very sad thing.

We will hold a show in Rome in July this year to commemorate everything that he has brought us in the Fendi years of cooperation. "

Christian Dior, another flagship brand of the group, bought a retail space at 127 Champs Elysees street.

Arnault said: "this is a temporary retail space. We will operate here in the form of flash store during the rebuilding of flagship store on Montaigne Avenue.

We hope that during the space preparation, we can solve the problem of yellow vest activities, otherwise we may wait for some time to start business again.

The space is expected to be put into operation this summer, with a total of three storeys and a total area of 9685 square feet.

According to the source, Christian Dior will try a brand new retail concept here.

Arnault also mentioned the success of the LVMH series and the famous American singer Rihanna (Rihanna) launched the beauty series Fenty Beauty, and said that the series will soon expand to the skin care products.

However, when asked about further cooperation with Rihanna and launching a rumor of the same name luxury brand for the latter, Arnault chose to avoid the topic.

He said, "like you, we are very interested in Rihanna, but I can not reveal more about this issue."

LVMH group has set up a new company called Project Loud and has injected 60 million euros into it.

It is widely believed that this move is most likely to prepare for the creation of a new brand in collaboration with the American singer Rihanna.

The name of Rihanna's fifth solo album is called Loud.

Last February, LVMH announced that the former design director of YSL and the famous designer Hedi Slimane will take the place of Phoebe Philo to become the artistic creativity and image director of its luxury brand C line (CELINE).

Arnault said that the arrival of Hedi Slimane is an important step in the development of C line: "he is a very outstanding creator. His men's show in Place de la Concorde is excellent, and the heat is very high. I hope our output can keep up with the market demand."

LVMH group has just completed the acquisition of El Luxor Hotel and travel group Belmond.

Arnault said, "the hotels under Belmond are excellent, but they still need more investment.

This acquisition is part of our strategy to enhance consumer experience.

Consumers today want not only the best products, but also the best experiences.

It has been rumoured that LVMH group is looking for potential buyers for its brand Pucci.

Arnault denied this statement and said: "this does not sound very right.

We have no intention of selling Pucci. "

Counterfeiting and social responsibility

A major problem that luxury groups need to face is counterfeit and shoddy products. LVMH group is no exception.

Arnault said: "we are working very hard to cooperate with the police to prevent the sale of fake and shoddy products.

(fake and shoddy) is a plague spread in France and throughout the European brand.

Some states in the southern part of France will arrest anyone who has a backpack full of fakes, but they will only be locked out for four hours.

Now we will detain all commodities to ensure that they will not continue to circulate.

But this situation still exists in Italy. We have not yet convinced the Italy government to adopt the same policy. "

He also stressed that the LVMH group will also strengthen environmental and social ethical issues in the supply chain, including tighten regulation of crocodile skin suppliers, and use biodynamics in the production of red wine.

Just a few days ago, the LVMH group just announced that it would donate 200 million euros to rebuild Notre Dame de Paris for the fire.

But then it was said that the LVMH group's move was to avoid tax.

Arnault expressed his helplessness: "we will not get any tax relief from it. This is groundless.

In today's environment, even if we are doing a good job, we will be criticized.

For me, Notre Dame de Paris is not only a unique church, but also an eternal symbol of France.