The billionaire gathered at the inauguration ceremony of President Donald Trump on Monday. Beside a large number of high -tech giants in the United States, the founder and highest executive of LVMH Mohenesy Louis Vuitton SE accompanied by Delphine, the highest executive of a family -run company, and his son Alexander. 。
Arnault’s existence may have frowned his eyebrows. But for his fifth wealthy, it was an excellent business sense.
The Arno and Trump families go back to some extent. In 2017, Bernard Arno was one of the first CEOs to visit President with Alexander after the 2016 presidential election. By recruiting Trump this time, LVMH’s position as a high -end product owned by the United States may be strengthened and protected from tariffs. Fashion may also be activated.
With the sluggish luxury expenditure in China, the United States is the largest expected country for luxury goods sellers this year. This has already applied to Cartier owner Seafinanciere Richmon SA, and sales on the US continent increased 22% in the third quarter. LVMH, who announces the 4th quarter of next week, may follow this.
U.S. luxury sales are usually correlated with the stock market, and the S & P 500 is approaching the highest price ever and bitcoin is continuing to rise, so the possibility that Americans will continue to expand their luxury bags and watches. Is enough. If so, LVMH will benefit the most. In the first nine months of 2024, it produced 25 % of sales from the United States, including contributions from Tiffany, an icon in the United States.
Another important reason that Arno has a good relationship with Trump is tariffs.
Exports for high -end product companies in China are limited, but they will be taxed on European products. Normally, the price increase can be transferred to a wealthy customer, but when inflation intensifies, the room for raising the price narrows.
If tariffs are activated, LVMH will be in an advantageous position. The largest production area after France and Italy is the United States. Louis Vuitton, the company’s largest brand, has already produced handbags and leather accessories at Texas and California factories. Tiffany is designed and manufactured in the United States, but LVMH owns a grape garden in Napa Valley.
In 2019, two years after his first visit to the president, Arno opened a promise to create more employment in the United States and opened a Texas plant. It is not difficult for LVMH to do the same this time. It not only brings the favor of the Supreme Commander, but for some products such as coin purse and card holders, “Made in America” may be a useful marketing tool.
The luxury industry can also benefit from President Trump’s trickle down effect on the cultural era.
It is worth noting that he hardly wear casual clothes. Look at his sharp shoulder suit. Mrs. Melania’s glamorous costumes are inevitable to attract attention, but Second Lady’s Usha Vans has become a new style icon wearing a pink scarf coat of Oscar de la rental on Monday.
If Washington becomes wiser, this change can bring a wide range of vitality to formal wear, which will help retailers to fight Lurelemon Astica’s ABC pants. The footwear industry will surely work thanks to the towering heels of Mrs. Melania. Pin heels are one of the categories that have not yet recovered from the pandemic.
Dior, the second largest brand of LVMH, where Delfine Arno is the highest executive officer, wears Mrs. Mrs. Mrs. Mrs. Mrs. Mrs. Ivanka on Sunday, and Ivanka Trump is wearing Givanci Gowns, the designer and sister’s fashion house. Ta.
President Trump’s tolerance of gold and power can encourage consumers to show their wealth more openly, and will have a positive effect on the sales of handbags and watches, a symbol of status. The billionaire has already changed its priority. They may change their choices. Witness a 900,000 -dollar Switzeric watch worn by Mark Zuckerberg in a video of Meta Platform, which announces the end of the facts.
If the excess era is back, it will be a welcome rescue for Big Luxury. With the postponement of the logo for the past few years, the brand has to persuade customers to spend money without using brands that are one of the most valuable assets. 。 According to Bank of American analysts, minimalist niche brands such as “The Row” and “Kite” are more likely to acquire cultural relevance and sales, promoting the rise of duck culture. It is said that it is.
It doesn’t mean that the Arno family is close to the Trump family. Some customers may be upset and vote with a wallet. And Arno attended the inauguration ceremony when the Shome, a group division designed by the Olympic medal, was giving the bronze prize to the bronze prize. (LVMH is not involved in the manufacturing of medals.)
However, it is worth risking for another glitter because it depends greatly on high -end expenditures in the United States.
Andrea Fersted
