The Strategist

Coronavirus hits luxury market

02/27/2020 - 09:38

Wealth of the richest man in Europe, owner of Louis Vuitton and Dior, Bernard Arnault fell below $ 100 billion. The luxury sector has become one of the main victims of the coronavirus outbreak.

Jérémy Barande
Jérémy Barande
Louis Vuitton and Dior’s owner Bernard Arnault left the list of billionaires with wealth exceeding $ 100 billion, in which he first showed up in June last year. As the Forbes Real-Time rating shows, Arnaud’s wealth declined by $ 2.8 billion to $ 97.7 billion. The French billionaire was the leader in declining value of assets per day.

Now there are only two people with a 12-digit wealth in the Forbes ranking. This is Amazon CEO Jeff Bezos ($ 120.9 billion as of February 25) and Microsoft co-founder Bill Gates ($ 109.7 billion). Arnault joined them last summer, and debuted as the richest man on the planet in December. In mid-January, the Frenchman again managed to take first place in the Forbes Real-Time ranking, but only for three days.

Manufacturers of luxury clothing, shoes, watches and accessories were among the main victims of the new coronavirus, which appeared at the beginning of the year and claimed the lives of more than 2700 people around the world. China, where the epidemic began, accounts for 40% of the global luxury goods market, Bloomberg wrote. Last weekend, it became known that the virus has spread rapidly outside of China: a sharp increase in the number of cases has been detected in Italy and South Korea. Against this background, Monday was the worst day in three years for European stock markets. Arnault’s LVMH stocks plummeted by about 1.93%, while his fortune declined by $ 4.8 billion on that day.