LVMH is a French Luxury Goods Company that owns brands such as Christian Dior, Moët Chandon , Louis Vuitton and Tiffany from handbags, to fashion, jewellery and Champagne.
Yesterday the value of the Company surpassed $500 billion American Dollars around £400 billion British pounds or 450 billion euros. The push above 500 billion came from the Chinese markets following their post Covid opening. The incessant buying of luxury goods inflated by what only knows has been relentless particularly from the Asian buyers led by the Chinese who seem keener on a handbag than Taiwan.
Politicians might do well if they considered the psyche of this pursuit which says a great deal of the Chinese desire to be western. When they eventually realise they will doubtless find that all that glistens is not gold. The chic French have wooed them in and Mr Arnault who owns nearly half of the Company is a very clever man. Of course his different brand shops have opened across the main Cities of China though it is a phenomenon to see how the guy or girl in the street can suddenly come up with £5000 for a handbag.
Mr Xi might be taking a closer look at all this going on as he reels in the China entrepreneur from ever getting carried away. China does in fact have no to a few brands which is surprising bearing in mind their rich heritage and yet they prefer the western influence. Under Chairman Mao the Chinese uniformed their dress code into blue overall and they abandoned the socialist pursuit under Ping and released the 350 million that lived on the east coast for a capitalist free for all whilst the 1 billion in the middle took a little longer to wake up and be freed into the chasms of the western commerce.
In a form of Communist Commercialism the world is now beginning to dress the same, hang the same jewellery around their necks and down the same bubbles their throats, swing the same handbags in the city centres of the globe. After all we are human and the human trait is to follow and reach out in the grab of life displaying their wares and abilities to match. That inevitably is a sad road to travel on and keeping up with the Jones’ an empty promise.
The French and American Presidents met recently to discuss cooperation in the Indo Pacific region and the building of nuclear submarines at $3 billion each. On an equivalent value to LVMH one can build 168 of them. Far better I say to fight with the handbags than the submarines. Louis Vuitton founded the Company in 1854 during the Qing Dynasty of China and the only one thing that survived was the handbag. Dior was founded in 1947 two years before the Cultural Revolution and only the dress has survived. Tiffany founded in 1837 survived Emperor Daoguang and its attract never fades. I told you Mr Arnault is a very clever man.
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