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Global sales of handbags and perfumes made by LVMH account for a larger share of France’s exports than all of the Camembert and wine produced by the country’s famed agricultural sector.
The Paris-based luxury leader accounted for 4 per cent of all French exports last year, according to a study by consultancy Asterès for LVMH released on Thursday. The €23.5bn value of its goods heading abroad last year beat the 3.2 per cent contribution of the entire agricultural sector, reinforcing the importance of the luxury sector to France’s trade balance.
LVMH has become one of France’s most recognisable companies internationally, producing the majority of its goods in France or Italy to maintain the quality that allows it to command premium prices. The US accounted for a quarter of sales in its most recent quarter, while Asia accounted for just under 40 per cent.
“We achieved pretty sustained growth in Europe, in Japan and the rest of Asia last year, but a bit less strong in the US due to the economic situation, which is in the process of inverting now,” chief executive Bernard Arnault said on Thursday at the group’s annual meeting.
China has become a more complex situation for the sector as luxury goods demand softens amid an uncertain economic outlook and increased trade tensions with Europe. “I hope the economic tensions will quiet down and that we will be able to continue a solid economic collaboration with China,” Arnault said.
Though France accounts for less than a tenth of global sales, the luxury group — which includes brands ranging from fashion label Louis Vuitton to Moët & Chandon champagne — is keen to trumpet its contribution to the French economy as it undergoes changes to leadership at the family-controlled company.
Two of Arnault’s sons were welcomed on to the board on Thursday, joining their two older siblings and reinforcing the family’s control. All five of Arnault’s children work at the company in operational roles and all but the youngest, Jean, now have board seats.
The changes to the family’s role have happened in tandem with changes among top LVMH executives outside the family. Longtime Arnault deputy Antonio Belloni has stepped back as group managing director, to be replaced by Stéphane Bianchi, the 59-year-old former head of watches and jewellery.
The leadership shifts come amid a global slowdown in sales following a multiyear boom for a sector that is critical to the French economy. France’s luxury sector, which also includes LVMH rivals Hermès, Chanel and Gucci owner Kering, accounted for just under 12 per cent of French exports in 2023, according to luxury industry association Comité Colbert. LVMH accounts for about a third of the total.
LVMH this week reported lower demand for designer bags and champagne in the first quarter, its weakest since the pandemic recovery supercharged luxury sales in early 2021.
