People who lost the most during the epidemic

China Fund News Taylor
Before the outbreak, he was the richest man in the world. After the outbreak, he was the one with the most losses in the world.
Yes, he is the owner of luxury brand LV, Bernard Arnault
More than $30 billion in losses! People who lost the most during the epidemic
LVMH shares are down 19% this year, according to the Bloomberg billionaire index, according to Bloomberg news. Its boss, Bernard Arnault, has lost more than $30 billion (more than RMB200 billion) in net worth, more than anyone else in the world. As of May 6, he had lost about as much money as Amazon chairman Bezos had earned this year.
In January, Arnault overtook Amazon founder Bezos to become the world’s richest man, with $116.5 billion in assets. LVMH’s share price fell 19% this year, while Arnault’s net worth fell more than $30 billion, more than anyone else in the world lost, Bloomberg News said on May 7.
Reported that, due to the epidemic, LVMH in most of the world’s boutiques has been closed for nearly a month, this is Arnaud’s most lucrative department, has lost billions of dollars; concerts and gatherings around the world closed, nightclubs and restaurants closed, LVMH’s sales of champagne decreased; and when people wear masks, perfume is not necessary.
It’s up to the Chinese to save it?
Bloomberg News Agency pointed out that LVMH’s cash reserves and sales volume are showing signs of improvement in China, and the fate of the luxury industry, as well as the fate of Arnault, will largely depend on China. In recent years, China’s market accounts for more than 1 / 3 of luxury sales and 2 / 3 of the growth of luxury industry.
“In April, the sales growth rate of major brands in China was very high,” Jean Jacques Giovanni, LVMH’s chief financial officer, said in an investor conference call on April 16. This really shows that after two months of blockade, Chinese consumption appetite has returned to its previous state. “
5 days to end the journey of the richest man in the world
On January 17, Bernard Arnault, the head of LVMH, a luxury goods group, won the world’s richest man. Its gorgeous moment also indicates the high reputation of the whole luxury industry and the general recognition of the market for the value of high-end luxury brands. You know, there are only three names left in the $100 billion club: Amazon founder Jeff Bezos, Microsoft founder Bill Gates, and Bernard Arnault.
But four days later, on January 21, Arnault fell from his throne.
“Twenty five years before Arnold, there were only five richest people in the world: Bill Gates, Buffett, Carlos, Ortega and Bezos.” According to Gu Xiaoshuai (pseudonym), a partner of the consulting company, “becoming the richest man” means that it is in line with the development direction of the times and represents the expectation of most people for the future.
And Arnold’s rise to the top of the world’s richest man indicates that the market is extremely optimistic about the future of luxury goods.
It’s true. In 2019, the luxury industry bucked the trend and rose against the background of the general recession in the global retail industry, with the world’s three top luxury groups performing prominently. LVMH group’s share price has risen by more than 60%; Kaiyun group’s share price has risen by nearly 50% in total, with its market value reaching a new record; and Lifeng group’s market value has risen by more than 20%.
Behind the numerical growth, we can not do without the “great help” of Chinese consumers.
Data shows that in 2019, the global luxury market will grow by about 2.2 trillion yuan, 90% of which will be driven by the Chinese market. With 18.5% of the world’s population and 16% of the world’s GDP, China has pulled 35% of the world’s luxury consumer market.
In addition, according to the McKinsey Research Report, the compound annual growth rate of middle and upper income families in China will reach 28% in 2018-2025. In other words, the luxury consumption potential of Chinese consumers is still in the growth stage.
Lv’s going up again
According to Beijing business daily, on May 5, many fashion bloggers in Xiaohong’s book “sued” Lv for the second price increase in nearly half a year. “On March 4 this year, the price has been raised once! Just saw SKP’s sales and development circle of friends said that on May 5, the price will increase all over the line! Confused, during the epidemic, all the money donated by LV should be recovered from consumers? ” Even two or three days ago, some bloggers published a screenshot of the chat about the “early warning” price rise of brand sales, which confirmed that the source of the news was reliable and reminded everyone to start early.
Customer service personnel said that the price increase was not limited to handbags, involving all products of the brand. Customer service said it was “not sure” whether the price hike region includes other regions besides China. For the reason of price increase, customer service also said that it was “unclear” and said that “brands sometimes increase their prices according to the tax rate”.
This is the second price increase of LV since March this year, with a gap of no more than two months. For such frequent price hikes, some netizens use “lunatic” to describe it, which feels like “stealing money”.
This year, due to the emergence of the epidemic, the luxury market continued to decline, including LV, Gucci and other top luxury brands were unable to withstand the pressure of the epidemic, and their performance declined precipitously. At a time when other brands are trying to boost sales, LV bucked the trend and increased prices one after another.
The reason behind this may be that in the first quarter of this year, the sales of LVMH group, the parent company of LV, suffered the first decline in nearly 10 years, with a drop of as much as 15%. Bernard Arnault, chief executive, stressed that the group is facing “unprecedented difficulties” at present, and the US luxury jewelry brand Tiffany’s $16.2 billion acquisition transaction, which was scheduled to be completed in the middle of this year, will also be delayed to the end of this year. With Chinese luxury