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▲ Four of the five richest people in the world (all Americans), now the first is a European

Is this a victory for women?

Many people say this is a victory for women.

Because of the president of LVMH Group, he manages dozens of luxury brands. One bag, one pair of shoes, one string of bracelets … The main consumers of luxury goods waved banknotes and used real money to help Arnold, allowing his group to retreat in the general environment, with a market value of one year Up 60%.

Last year, most industries were not doing well.But the luxury industry is not. LVMH, Richemont, and Kering, the three major luxury conglomerates, are all doing very well. LVMH’s stock has soared 60% in the past year.

LVMH ’s Dior, LV and other brands have performed strongly. LV ’s men ’s series has even exceeded flash sales in 48 hours. Its joint series with Supreme; Dior’s classic saddle bag also launched a men’s model; Celine also launched the brand’s first menswear series. It is the addition of these new blood that has allowed the LVMH Group’s fashion and leather goods division to achieve double-digit growth again.

RBC Capital Markets analyst Rogerio Fujimori once said Although menswear is only a small part of LV ’s performance, but Not to be underestimated, it has a great stimulating effect on brand store traffic and sales of high-profit core accessories such as handbags and shoes.

This is not so much a victory for women as it is a new growth point for the brand, driving the overall situation.

Of course, the most obvious driver of the LVMH surge is Price increases . In last year’s rich list, Bernard Arnold ranked for the first time in the top five. Maybe to celebrate, the global counter prices are just like that Here, 1200 products worldwide have joined the price increase, up 10%.

Brand price increases push new product lines, and consumers are willing to pay. If I was Bernard Arnold, who was sitting in the position of the richest man in the world, I would have laughed happily. It would be a win-win situation.

How did Bernard Arnold get rich?

Unlike Bezos, Musk, and Zuckerberg, which started from scratch, Bernard Arnault is more like Gates. His ancestors are broader. The family connections and resources make them go more smoothly.

We know that Gates used to write code in a hotel in a crazy way a week. During Zuckerberg University, he made a well-known social application. It can be said that he used his hands to knock out his bright future. Bernard Arnault is not the same. He may rely on his own vision and reaction.

When he returned to the family business at the age of 22, he persuaded his father to sell the company’s construction business for 40 million francs and switch to a real estate business. At the age of 32, he also went to the United States and wanted to start a big career. He started construction in Florida where the family was good, but this experience was far from successful in his life.

So he returned to France and targeted Dior, a brand that even Americans know.

Dios’ parent company Boussac was bankrupt and the French government was seeking a social buyer. Arnault broke the boat and mortgaged $ 15 million in family assets. With the help of his partners, he took the first luxury brand in his life.

Dior is the beginning, but Black Monday in 1987 gave Arnold the opportunity to own LVMH.

He collaborated with LVMH’s family heir, Henri Racamier, to help him win. In LVMH, many century-old brands, several family shareholders, and different contenders … The chaos of a group has disappeared in this cooperation with partners. They won, but the cruelest part of the palace fight has just begun. After years of court trials and drool battles with the “closest partner”, the winner was Arnott.

Taking advantage of LVMH’s stock slump, Arnott’s investment company went on with private investment, and ultimately held more equity than its own family heirs. From a facilitator, Arnott became a leader and drove this huge ship to begin to capture the world’s luxurious and beautiful brands.

Kenzo, Céline, Marc Jacobs, Loewe, Givenchy, Guerlain, Chaumet, RIMOWA … In addition to jewelry and clothing, retail stores such as Sephora and DFS are also included.

Of course, it ’s not that hardcore. The strength of LVMH made the Hermès family work together to fight for equity defense. After Gucci encountered the acquisition, it issued new shares radically. Even after going to court, it was eventually escaped from LVMH. Earned by Kering Group.

▲ Tiffany, Arnot’s new goal

The acquisition process of LVMH, led by Arnott, is full of fierce “calling you sick and killing you”, and also exiting quickly after encountering stubborn resistance such as Hermès and Gucci. Patrick Thomas, then CEO of Hermès, even shouted LVMH in a public statement: “If you want to seduce a beautiful woman, you shouldn’t start rape her from behind.”

Arnault has a good vision and quick response. What he is best at is to take over when other stocks plunge. The plot of his acquisition is wonderful, and it may even be on top of the popular palace fight series in China.

U.S. network, European base

Bernard Arnott’s fortune can be said to be a traditional fortune. Not only is he in the tradition of the industry, but also the traditional methods, even the companies it acquires are quite well-established companies, and he can easily come up with a century-old brand history. This is a brand nourished by European cultural aesthetics and craftsmanship for many years.

From bags and watches to clothing accessories, they are products that you will use in your daily life. The heritage of these artisans began from a buyer’s shop and eventually became a well-known brand with a century of heritage. Their penetration rate may not be as fast as the Internet, but Runwu’s silent branding has made them the products that users want to own and can’t do without.

▲ Celebrity endorsement is also a common marketing method for LVMH

In fact, Europe’s highest market capitalization companies all follow this path. Nestle, which has the highest market value in Europe, has contracted your milk powder, oatmeal, candy, drinks, and so on. Everything related to eating is related to Nestle.

HSBC is the company with the highest market value in the UK, and Europe is indeed the birthplace of modern banks.

The highest market value in the Netherlands is Royal Dutch Shell, and then Unilever, one is the legacy of the “coachman”, and the other is the daily necessities in your life.

Most of these brands are the afterglow of European history. They have a long history and come from traditional industries. This is a testament to the strength of handicraft and industrial production in Europe. But on the other hand, this is also a testament to the weakness of new European companies. Just like the head of a German automobile group, Jacques Weihaiern, said in an interview with the Global Times that “Europe is indeed behind in the world technology race.” .

On January 20, Bernard Arnott remains the richest man in the world. But when the new trading day ends, who knows if he will become the second or third in the world? After all, those who have less wealth than him are Bezos and Gates. If Bezos does not divorce, and Gates has not spent tens of billions of dollars for charity, then this position is still a long way from him.

In an interview with Forbes, Arnault himself said: “If we compare us with Microsoft, our scale is still very small. This is just the beginning.”

Compared to trillions of internet companies, LVMH with a market value of 100 billion is indeed “small”, and LVMH with more than 70 luxury brands is really just the “beginning”.

However, although the Internet in the United States is vigorous, the rich on the list do not have to wear the clothes of LVMH Group’s brands, and the daily necessities and food are also likely to be European brands.

Although in the 2010s, the Internet became the necessities of life like chai oil and salt, everyone had to use it, and everyone could not do without it. But outside of the rapidly developing Internet, veteran giants related to clothing, food, housing, and transportation also have their own ways of survival. Whether it is using the brand’s advantage to embrace the Internet or holding a team to fight together, they also have their own way to make money.

It doesn’t matter if you may soon fall from the position of the world’s richest man. After all, if the technology giants are punished heavily in Europe, the market value of stocks will also fluctuate, and Arnault may be the first.

But for us, it’s just one difference from Bezos.