Thursday, 25 February 2016

Crisis, what crisis? Should LVMH invest more in France? By Louis TOLEDO

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LVMH is top dog of the booming luxury sector. Since 1987, this company has continued to prosper, with today more than sixty brands including haute couture, leather goods, wines and spirits, champagnes, watches, jewelry and perfume. It is an empire run by the powerful billionaire Bernard Arnault. Magically, this French multinational has escaped the crisis…

The luxury business, valued at 150 billion euros, traditionally caters to wealthy customers of course, but nowadays it also has “occasional” customers (about 200 million people world-wide). Around 60% of Europeans, Japanese, and Northern Americans, have bought a luxury product at least once.

The shareholders of LVMH put pressure on their Board to increase profits. The result is that goods have to be made more cheaply in developing countries rather than in France. Rising unemployment for us is the result…

One tenth of the active French population has no employment, but Bernard Arnault had a new museum built in Paris, designed by Frank Gehry, costing €500 million… Arnault earned almost €3.5 million in 2014, 200 times more than the basic wage. All this money should surely be better used, namely to employ people in France. But, it is shareholders who decide in private companies, not our government…

Louis TOLEDO wants to work as a manager in international trade...

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