LVMH chief Bernard Arnault is no longer the world’s wealthiest man. As the luxury sector grapples with a China slowdown, three of France’s billionaires — Bernard Arnault, L’Oréal’s Francoise Bettencourt Meyers and Kering’s Francois Pinault — are seeing their fortunes dwindle as “restraint replaces indulgence,” reports Bloomberg. Their combined wealth has contracted by 53 billion euros this year, reflecting broader headwinds in the premium goods sector. The decline marks a stark reversal from the pandemic-era boom that had elevated these industry leaders into the uppermost echelons of global wealth alongside technology entrepreneurs.
The most pronounced impact has been felt at Kering, where challenges at its flagship Gucci brand have contributed to François Pinault’s net worth falling 63 percent from its 2021 peak to 20 billion euros, Bloomberg said. LVMH’s Arnault, who previously held the position of world’s wealthiest individual, has seen his fortune decrease by 24 billion euros as the luxury conglomerate’s shares retreat 30 percent from mid-2023 highs. The market correction has similarly affected L’Oréal’s Bettencourt Meyers, whose wealth has contracted by 17 billion euros
This wealth erosion comes at a politically sensitive moment in France, where discussions about wealth inequality and fiscal reform have intensified. However, the immediate catalyst appears to be slowing luxury consumption in China, traditionally a key growth market. Both LVMH and L’Oréal have noted particular weakness in Asian markets, while Kering has announced store closures as part of what it terms a “radical transformation” at Gucci. These developments suggest a broader recalibration in the luxury sector after years of exceptional growth.
