LV boss becomes the richest man in the world! Personal wealth exceeds one trillion yuan

The rebound in performance of luxury goods groups in 2022 will help the bosses’ wealth rise to the next level. The “2023 Daye Big Wine·Hurun Global Rich List” released …

The rebound in performance of luxury goods groups in 2022 will help the bosses’ wealth rise to the next level.

The “2023 Daye Big Wine·Hurun Global Rich List” released today shows that the “King of Luxury Goods” and LVMH’s 74-year-old Bernard Arnault’s wealth increased by 330 billion yuan, becoming the first to become the richest man for the first time with 1.35 trillion yuan. World ‘s richest man. Hermès’s 87-year-old Bertrand Pietsch and his family rose 7 places to third, with their wealth increasing by 31% to 900 billion yuan.

“In the era of ChatGPT and the electric car revolution, it seems a bit paradoxical that the world’s richest man sells luxury goods. Despite all the uncertainties caused by the cost of living crisis, the head of Louis Vuitton, Hermès, Gucci, Chanel, Cartier, Patek Philippe and Prada People still experienced a record year, with sales in Europe, the United States and Japan soaring, and a large number of American consumers taking advantage of the US dollar exchange rate to go shopping in the UK and Europe.” Hurun Report, chairman and chief research officer of Hurun Report, concluded.

In fact, signs of soaring wealth among the leaders of luxury goods companies have emerged last year. According to Forbes data last December, Bernard Arnault’s personal wealth is approximately US$186.2 billion, surpassing Tesla CEO Elon Musk (net worth of US$181.3 billion) to become the world’s richest man.

Behind the soaring value of the leaders of LVMH and Hermès is that the performance of several luxury goods group giants has gradually emerged from the “epidemic haze”, and their results last year hit new highs.

Take Hermès, which has always been at the top of the brand pyramid, as an example. The company’s annual report released in March showed that last year’s revenue exceeded 10 billion euros for the first time, reaching 11.6 billion euros, a year-on-year increase of 23% under fixed exchange rates. While its income has soared, Hermès’s ability to make money is amazing. Hermès’ operating profit last year was 4.697 billion euros, with an operating profit margin of 40.5%, reaching a record high. Net profit was 3.367 billion euros, a year-on-year increase of 38%, and net profit margin was 29%, the highest level in 10 years.

Needless to say, the LVMH Group, run by the new richest man, both achieved record highs in revenue and profit last year, with group sales revenue reaching 79.2 billion euros and operating profit reaching 21.1 billion euros. Among them, brands such as LV, Christian Dior, Celine, and Fendi under the fashion and leather goods business have seized market share globally, with revenue and profits reaching historical records. Among them, the LV brand’s revenue exceeded 20 billion euros for the first time, setting a record high.

Edmund Shing, global chief investment officer of BNP Paribas Wealth Management, said: “Compared with mass market consumption, demand for luxury goods has been little affected by rising inflationary pressures as the wealthiest households have benefited from the growth in wealth and accumulation during the epidemic in recent years. Huge cash savings.”

Zhou Ting, a luxury goods expert and president of the Yaoke Research Institute, believes that consumption upgrading is the core driving force for the rapid growth of the luxury goods industry. Consumption is upward-looking, and the more prominent brands are, the more customers will yearn for them. Last year, the prospects of many industries were unclear, the investment market prospects were sluggish, and most investments were converted into consumption.

The popularization and diversification strategies of luxury brands have also promoted the expansion of the luxury market to a certain extent. Regarding consumption in the Chinese market, the industry believes that with the liberalization of policies, luxury brands are paying more attention to the Chinese market and Chinese consumers, allowing Chinese consumers and the Chinese market to explode with huge potential.

A previous report released by Bain Consulting showed that China’s luxury goods consumption bucked the trend and fell by 10% last year, giving up its position as the world’s largest luxury goods consumption market. But even so, luxury goods giant Kering Group, which owns GUCCI, still attaches great importance to this market. CEO Francois Henri Pinault visited China again at the beginning of this year for the first time in three years. Within a week, he visited four luxury consumption centers, Chengdu, Nanjing, Shanghai and Beijing, becoming the first luxury giant to visit the Chinese market after the epidemic. .

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Author: clsrich