The Luxury Godfather House With LV In Hand Is Missing Overnight.

In the past year, LVMH (Louis Weedon, the famous luxury brand) LV has been worth $239 billion 300 million, and Arnaud has earned 1 billion 900 million dollars.

With $116 billion 500 million worth of assets, Arnaud also surpassed the world's richest man, Bezos, to the top of the world. However, with the outbreak of the global epidemic, LV and Arnaud woke up from their dreams and fell to the throne only after 5 days of being the richest man.

Up to now, Arnaud himself has lost more than 36 billion dollars in wealth.

Although Arnaud's wealth has shrunk, LV and its 79 luxury brands are still worth looking forward to. After all, he is the godfather of luxury goods.

Arnaud, the godfather of luxury goods

After graduating from college, Arnaud entered the construction company founded by his grandfather. He was just 22 years old.

He is a person who strives for excellence in his work. He was promoted to Chairman of the company in 1978 and began to take the initiative. During this period, he was transferred to work in the United States, and that is the experience that laid the foreshadowing for Arnaud's creation of LV luxury group in the future.

It was in a taxi in New York.

Arnaud: "do you know French President Pompidou?"

Driver: "no, but I know Christine Dio."

Since then, Arnaud has vowed that "if I have the chance to buy this fabulous name, I will build the world's first luxury group around this brand."

The opportunity came in 1984. Arnaud learned that Dior's parent company (bolsar) has gone bankrupt, Dior will be sold and is looking for "take over".

This allowed Arnaud to enter the luxury industry in one fell swoop, and the LVMH group became his next target "prey".

Two, World War I became famous LV

La Camille, the then president of the LV (the third generation of LV's successors), found that the company was in a situation of internal and external difficulties. The company could not achieve the further expansion of profits by relying solely on the high-end line. At that time, LVMH was also caught up in the awkward situation of equity struggle.

Arnaud realized that the opportunity had come.

He skillfully used the relationship between the head of the group's bags and the person in charge of the liquor business, and bought a large number of shares of LVMH company at a low price.

In second July, he became the largest shareholder of LVMH group.

In January 1989, he became the absolute controlling shareholder of the group with the help of investment bank, Mr.

Arnaud has an advanced vision. He is not limited to what he has at this time. What he wants is always the "1+1>2 effect".

Even after the financial crisis in 1997, Arnaud did not stop. Instead, he went to the market to win the jewellery and watch brands that LVMH did not go too far.

After the economic crisis, Asian economies gradually recovered, and sales of LVMH's brands were gratifying. This move, Arnaud, "down" is right.

Three, the acquisition of Gucci, Hermes successively defeated.

Often walk by the river, where can not wet shoes! The goddess of victory does not always care for him.

In 1999, Arnaud quietly purchased $34.4% of Gucci group for 1 billion 400 million dollars in 20 days, but this assault was not a success.

Obviously, Arnaud met his opponent.

According to relevant media reports, Gucci first issued a large number of new shares through the ESOP, diluted the shares held by Arnaud, and then found new buyers. It was Arnaud's French compatriot PPR company (that is, later Kai Yun group), which sold 42% of the total share capital to 3 billion dollars for Arnaud's French compatriot PPR company.

After the expansion, PPR became the largest shareholder of Gucci.

In a hurry, Arnaud sued a court in Holland for an investigation, but eventually the deal was approved by the Holland court.

In addition to the failure to acquire Gucci, the road to acquiring Hermes is also very bumpy.

In the first 10 years of twenty-first Century, LVMH acquired 17.1% of Hermes in the stock market by 1 billion 450 million in a complicated way, becoming the second largest shareholder apart from the Hermes family.

But Hermes has always resisted external takeovers. So in 2011, Patrick Thomas, the chief executive of Hermes, immediately filed a lawsuit against the LVMH group after it discovered that the group had bought shares of the group secretly.

In 2013, after a series of federal investigations, litigation and counterclaims, the two sides finally reached a settlement agreement.

That is, LVMH will compensate eherson for 8 million euros, and it will not be able to buy any shares of the latter in the next 5 years. The court decided that the LVMH group would reduce its holdings of 23% of Hermes to 8%.

Arnaud's comment is: "as long as you see a beautiful brand, he wants to get his income." Because he saw "prey" on the "go up", and also called Arnaud "Predator".

According to Alacrastore, a consultancy, 62 acquisitions were made in 1987, and 74 companies were held in LVMH.

Four, 16 billion 300 million U.S. dollars to buy "Tiffany"

Arnaud, who was already in his early years, did not stop his pace. His latest acquisition was in 2019.

LVMH bought us high-end jewellery brand Tiffany (Tiffany) at a cash price of $135 per share, with a total transaction value of US $16 billion 300 million, which has become the largest acquisition in LVMH history and luxury industry.

At the same time, with the completion of the acquisition, LVMH has not only the title of the world's largest luxury group, but also the world's largest jewelry group.

Despite the general downturn in the global retail industry in 2019, the luxury goods industry is showing up. And this is also inseparable from the "help" of Chinese consumers.

Data show that in 2019, the global luxury market grew by about 2 trillion and 200 billion yuan, of which 90% was driven by the Chinese market.

Five, the house is leaking for a rainy night.

I wanted to continue to work hard in 2020. And this sudden outbreak shattered Arnaud's dream.

Perhaps we saw the infinite potential of the Chinese market. In the early days of the epidemic, "LV" donated money and donations in the early days of the epidemic, trying to help the Chinese market get through the disaster as soon as possible and restore the market order as soon as possible.

Among them, LVMH donated 16 million yuan to the Red Cross Society of China, and the Group donated 7 million 500 thousand yuan to the Hubei Red Cross Society.

Originally thought that helping China through the difficult times, will usher in the spring of luxury industry once again.

But with the spread of the epidemic in Europe and America, the epidemic panic, people have been covering money bags, rational consumption has become the mainstream of society.

As more and more brands start to line up, the luxury industry's performance on the Internet mobile end is "not satisfactory."

In fact, luxury is a dream building industry. It is everywhere, showing "dignity and nobility".

As a result, luxury brands are paying close attention to balancing the distance between products and the public. They always follow the pattern of counter shops. They are "very cautious" in the way of Internet sales. LV has not established an e-commerce channel for consumers to directly touch consumers.

And the original luxury vendors who are absent from the layout of the electricity supplier are obviously in a hurry to change the line under the epidemic.

They also put forward the idea of "cloud shopping", trying to "further simulate the experience of luxury stores" online, in order to make up for the volume of sales which are depressed due to reduced traffic volume.

But can "cloud shopping" really replace the store experience?

Take LV's first live broadcast of Xiao Hong as an example.

In March 26th, Louis Weedon LV opened the first live broadcast on Xiaohong book. The total number of viewers in 1 hours and 10 minutes was 15 thousand, and the live broadcast of the little red book, which had been arranged for nearly half a year, was introduced into the public view.

However, because of the poor scenery, the lack of light, hanging the scarves and the wardrobe hanging clothes, they were somewhat shabby, and failed to take the high sense of luxury.

The outbreak was only partial at the beginning. It did not expect to spread to the whole world. Europe and America will become the focus area of the outbreak, and it is beyond expectation. The supply chain of luxury goods is almost all in Europe and America. This is also one of the reasons why the market value of luxury goods collectively has shrunk.

Therefore, the current epidemic situation, major luxury goods have been transferred to epidemic prevention materials.

LVMH group transformed perfume and cosmetics production line, began to produce hand sanitizer; Kai Yun Group invested the factory in the manufacture of medical protective clothing; LVMH's Dior production mask.

Many netizens quipped, "it's been a long time to live. Maybe you can still use the hand sanitizer produced by LV" in your lifetime.

In April 15th, the journal Science said that in order to avoid the recurrence of the new crown virus, it is recommended to extend the "intermittent social isolation" until 2022.

According to Bain Consulting's latest report, the luxury market in 2020 will shrink by 15% to 35%, and the loss is expected to be 60 billion to 70 billion euros in the whole year.

The use of scenes offline is not a good thing for the luxury industry, but I believe that the development of luxury goods industry will not come to an end.

After all, the more equal the society is, the more people are willing to show their differences through luxury goods.