Over the course of the pandemic, many businesses have been either significantly set back or forced to close down. However, for Bernard Arnault, owner of Louis Vuitton, Fendi, Christian Dior, and Givenchy, it is a completely different story. Ever since the start of the pandemic, Arnault’s net worth has been in a steep upward trend. At first glance, this may be shocking because a common assumption is that the pandemic would lead to less people buying clothes. Despite this, taking a look at Louis Vuitton’s stock (which Arnault owns 46.84% of) says otherwise. Ever since the pandemic started, Arnault’s stock has increased in a sharp trend similar to his wealth.
The question now is why the LVMH’s stock raised so suddenly. The answer is because of the sharp increase in popularity Louis Vuitton experienced in China. At of the start of the pandemic, the amount of Louis Vuitton products purchased by Chinese buyers sharply increased. This was due to the large demand of luxury products from the middle class to show and maintain their status. Additionally, the traditional Chinese design of Louis Vuitton products in China further appealed to the middle-class buyers increasing the amount of products bought overall. Although not as sharp as Louis Vuitton, other luxury brands which Arnault owns such as Fendi and Christian Dior have been increasing in popularity as well .
All of these scenarios put together is what allowed Arnault’s wealth to soar during a time in which most other businesses plummeted.
Sources: https://www.businessoffashion.com/community/people/bernard-arnault
https://fortune.com/2019/07/20/bernard-arnault-net-worth-secind-richest-billions/
https://www.bloomberg.com/billionaires/profiles/bernard-arnault/