France, which has always been associated with luxury and wealth, has faced unexpected financial losses this year, even among its richest citizens. The wealth of the three leading French billionaires – Bernard Arnault, Françoise Betancourt-Meyers and François Pinot – fell by a staggering $58 billion. The main reason was the loss of demand for the products of their companies LVMH, L’Oreal SA and Kering SA. Although they remain among the world’s richest, this year has been particularly difficult for their business empires, Bloomberg reports.
François Pinault, the owner of Kering SA, suffered the biggest losses. His fortune decreased by 63% and now stands at $22 billion. The main reason was the decline in sales of the Gucci brand, which is the main asset of his company. Despite the fact that he handed over the management of the company to his son François-Henri two decades ago, this did not protect the business from significant losses.
Bernard Arnault, the founder and chairman of LVMH, lost $26 billion when his company’s shares fell 30% from their peak in mid-2023. This decline moved him to fifth place in the global billionaire rankings. Arnault’s luxury empire seemed unshakable, but market changes, especially in China, have posed serious challenges.
Françoise Bethancourt-Meyers, the heiress of L’Oreal SA, lost about $19 billion. The main reason was the downturn in Asian markets, especially in North Asia, although other markets remained relatively stable.
Global business is changing, and even luxury empires are no longer safe havens for capital. The main decline in sales occurred in the Chinese market, where demand for luxury brands suddenly weakened. Analysts believe that cultural changes and a rethinking of consumer values in China have led to a decline in sales, which has hit LVMH and Kering particularly hard.
France, which has long been a symbol of sophistication and wealth, is now demonstrating by its own example that even the greatest wealth cannot withstand global changes and challenges of our time.
