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In a global economic context marked by successive upheavals, few sectors manage to maintain lasting stability. Long perceived as an unsinkable fortress, luxury, the quintessential symbol of prosperity and exclusivity, also wavered in 2024. Indeed, the fortunes of iconic figures such as Bernard Arnault, Françoise Bettencourt Meyers, and François Pinault suffered colossal losses, amounting to over 70 billion dollars combined. Such a decline finds its origin in a set of closely related factors: a slowing Chinese economy, national political tensions, and increased market volatility. These combined elements have shaken the pillars of the sector, revealing an unexpected fragility.
Fortunes in Decline : A Dark Year for French Luxury
In 2024, the great French fortunes of luxury went through a particularly difficult period, marked by a drastic decline in their net worth. Bernard Arnault, once the third richest man in the world, saw his fortune diminish by 15 %, a loss directly linked to the 14 % drop in LVMH’s share price, of which he is the majority shareholder. “The stock market performance of LVMH directly reflects the challenges of the global luxury market,” indicates the Bloomberg Billionaires Index.
On her part, Françoise Bettencourt Meyers, heir to the L’Oréal empire, suffered an even more pronounced setback. Her fortune fell by 25 %, parallel to a 24 % devaluation of her group’s shares on the Paris Stock Exchange. The Wertheimer brothers, owners of Chanel, also recorded an estimated loss of several billion euros, although the impact is mitigated by the absence of stock market listing for the luxury house.
The case of François Pinault, founder of the Kering group, stands out for its magnitude. His personal fortune melted by nearly 40 %, a consequence of a spectacular 41 % drop in Gucci’s stock price, the group’s main growth driver. These losses reveal a clear break from previous years, where luxury appeared as an unassailable safe haven for investors. Such a trend, combined with the dismal performances of big names in the sector, highlights a major change for the French luxury industry.
The Role of China and the Shadow of Political Tensions
China, a historical pillar of growth for the luxury sector, played a central role in the 2024 crisis. With Chinese consumers generating nearly 30 % of the industry’s revenues, the weakness of the country’s economy had considerable repercussions. Contrary to expectations, the recovery of the Chinese market did not materialize. The economic measures implemented by Beijing, aimed at stimulating consumption and reviving the economy, proved ineffective. This stagnation exacerbated the difficulties faced by luxury players, whose sales figures in this key market have sharply declined. At the same time, increased trade tensions between China and the United States amplified the climate of uncertainty, hindering exports and further complicating the situation for businesses in the sector.
In France, political turbulence has exacerbated this economic crisis. The dissolution of the National Assembly in June introduced a prolonged climate of instability. This situation paralyzed critical government initiatives, such as the 2025 finance bill, which included a controversial increase in corporate tax. Such a measure, according to Jean-Jacques Guiony, CFO of LVMH, would have cost “more than 700 million euros” to his group, which would heighten the concerns of large corporations. Since this event, the CAC 40, which was reaching historic highs before June, has not regained its elevated levels. Investors, facing increasing fiscal and economic turmoil, are increasingly pessimistic, fueling a vicious cycle of devaluation in the markets.
This dark year raises questions about the future of luxury. While Asian markets remain strategic, they appear increasingly unpredictable. Players in the sector will need to diversify their approaches, strengthen their presence in other regions, and rethink their strategies in the face of a tense national political context. In 2025, the challenge will be to regain investor confidence and redefine their resilience against volatile external factors. Thus, the year 2024 will remain in history as a brutal reminder: even luxury giants must adapt to a world where stability is never guaranteed.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
