Crazy Rich Asians Push Louis Vuitton Owner Past Bill Gates in Wealth

Chinese customers, who still mainly buy luxury items on overseas trips, buy more than a third of luxury sector sale. They and other Crazy Rich Asians have helped boost the shares of LVMH. Chinese consumers purchased $121 billion worth of luxury goods in 2018 which was 32 percent of the worldwide total. This share is estimated to grow to 40 percent by 2024. The rest of asia added another 10% of luxury goods sales and the US sales has a large fraction from China and other asian tourists shopping at US outlet stores.

The LVMH luxury brands (LV, Hennessy etc…) is seeing strong sales growth in China, with e-commerce accounting for 8 percent of the brand’s sales.

LVMH, Bernard Arnault’s luxury-goods maker, share value has increased 50% since the start of 2019. This pushed Bernard Arnault’s net worth to $107.6 billion and ahead of Gates by more than $200 million.

The PE ratio of LVMH is only 26.6. Amazon has a PE ratio of 83.

Arnault, 70, joined Gates and Amazon.com Inc. founder Jeff Bezos, the world’s richest person, in the most exclusive wealth club last month, when his fortune surpassed $100 billion for the first time.

The surge in LVMH and luxury goods spending in China was in spite of the trade war. If there is deal in the trade war then there could be an even larger surge in China’s luxury goods spending and in the value of LVMH. There would be surge in LVMH shares with a trade deal. Those factors could drive Bernard Arnault past Amazon’s Jeff Bezos to become the wealthiest person in the world.

LVMH had been growing revenue at over 16% per year.

SOURCES- Deloitte, LVMH
Written By Christina Wong, Nextbigfuture.com

10 thoughts on “Crazy Rich Asians Push Louis Vuitton Owner Past Bill Gates in Wealth”

  1. I misunderstood you because you appeared to be saying that guys do not understand it. Unless you were being sarcastic, but that didn’t make sense because Scary brought up the cars example.
    Of course I could have been distracted because the other window in my browser was open to some SWEET titanium and carbon fibre racing wheels…

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  2. She’s thin, but not skinny. You need to get out of McDonalds and recalibrate your view of what normal people look like.

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  3. You really think GM overtook Ford because of women buying cars?
    No, I agree with Scary. Women spend on some forms of flash, and men spend on others.

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  4. Yes, its something we guys can not understand.
    No issues with i9 extreme editions or titanium bicycle parts who shaves off 10 gram because the special forging process using virgin pee.
    8K is an obvious choose, however we still laugh at the ones buying $1K/m hdmi cables so we have some limits outside of cars, obviously cars don’t count, nor do boats 🙂

    Ladies dress to impress other ladies not us. Look at fashion during history and its pretty obvious. Only upside is that we have other stuff to wear than fur and hides 🙂

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  5. She’s holding onto that rock to avoid falling down from malnutrition.

    The handbag must have a helium balloon inside.

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  6. Give me a break…LV is the most counterfeited brand in China… it’s so over counterfeited and sold by an army of grannies on every street that the local Chinese consider LV the “cheap” brand…. if people in the United States realize they can buy $150 to $300 LV bag for $8 dollars in china they would feel ripped off and realize it has no brand appeal… even a homeless chinese vagrant can walk around with an LV bag…. meanwhile young Americans are showing off LV bag as a status symbol…

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  7. No hope for Asia, all that they desire is to become western consumerist, they’ve fully internalized the western standards of living

    Reply

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