The slowdown in the global personal luxury goods market resulted in a year of record wealth losses for France's top billionaires.
According to the Bloomberg Billionaires Index, Bernard Arnault, Françoise Bettencourt Meyers, and François Pinault had $71 billion erased from their collective wealth this year.
The three French billionaires are in the index's top five for largest wealth losses (in dollar amount) on the year.
These billionaires also control LVMH, L’Oréal SA and Kering SA. It was a bloodbath for the industry...
Gucci-owner Kering tumbled 41% on the year, L'Oréal SA -24%, and LVMH -13.5%.
A recent note by Bain & Company, in partnership with Italy luxury goods manufacturers' industry association Altagamma, showed that the personal luxury goods market entered its first slowdown since the Great Recession.
Global luxury spending is expected between -1% and 1% in year-over-year growth in 2024, reaching 1.5 trillion euros, or approximately $1.6 trillion, as cash-strapped consumers from China to Europe to the US continue dialing back on discretionary items.
Looking ahead, Bain forecasts a slight improvement in luxury spending in 2025 but anticipates a shaky industry through the decade's end.
LVMH is the world's largest luxury goods company, and in its latest earnings report, it warned about an "uncertain economic and geopolitical environment" denting global sales.
Meanwhile, Elon Musk remains firmly at the top of the Bloomberg Billionaires Index. Is rocket man set to become the world's first trillionaire by the end of the decade?
Building rockets is a much better business than selling purses made in sweatshops.
