Arnault's entry into the boutique world is a bit tied up. The Arnault family used to be engaged in the construction industry, and the courses he studied at the university had nothing to do with the boutique industry. But he worships the famous French fashion designer christian dior (1905-1957). 1984, 35-year-old Arno decided to join the fashion industry after graduating from a comprehensive engineering university. With the full support of his family, he defeated many powerful players and acquired Boussac Group, a long-term loss-making textile company. Many people kiss babies to feed them. He is not interested in Baussac, but in a fashion company named after the group's late designer Dior. From 65438 to 0987, the ambitious Arnault turned his attention to LVMH. Perhaps the times made heroes. In the late 1980s, just in time for the economic downturn, Arnault was able to buy a large number of LVMH shares at a very low price. He took advantage of the power struggle between the management of the company, and after a rather difficult lawsuit, he finally got his wish to take LVMH, a successful company, into his own hands. Arnault's boutique empire has begun to take shape, and his next step is to expand, expand and re-expand LVMH's territory. His goal is to build a huge boutique empire, including not only boutique fashion, but also brand-name watches, high-end wines and so on. To put it bluntly, he just wants to make money from rich people.
The strong cash flow of LouisVuitton, to which LVMH belongs, and liquor businesses such as DomPerignon and Hennessy give him enough money to buy various boutique brands: watch companies, perfume manufacturing companies, duty-free chain stores, department stores and even boutique auction houses. In the process of establishing the LVMH empire, Arnault was known for being difficult, harsh, calm and alert, just like others nicknamed him "Wolf". When the British beer companies Guinness and GrandMetropolitan wanted to merge into a new metropolis, he strongly opposed it. His objection is reasonable. Lu Wei Ming Xuan Group holds an important share in Guinness. Later, after Arnault received a considerable reward, the merger went smoothly.
Since 1997, the company has opened or acquired more than 500 stores, from cosmetics chain stores to specialty store, which sells sunglasses and watches. In 2000, the sales revenue of these businesses was about $2.4 billion. Boutique industry is a high-profit industry, such as Louis Everton wine, with a profit rate as high as 40%. The profit rate of retail industry is much lower than this figure. I'm afraid it's hard for Arnault to make a big profit from the retail industry.
However, nothing seems to stop Arnault from constantly grabbing. Soon after, he said that the acquisition season of INMH company had arrived again. He said: "Boutique is a special industry, unlike making cars or other industrial products. You must have passion to succeed. I think, at least in the next 10 years, I can continue to live well. "
In 2003, LVMH acquired the department store LaSamaritaine in Paris, holding a 200 million-dollar stake in this department store with a history of 130 years. He hopes to transform it into a boutique shopping mall, specializing in selling all kinds of high-end goods. Bernard arnault's appetite is no longer satisfied with fine manufacturing. He wants to enter the retail industry and make LVMH icing on the cake.
1999 In the summer, when the Internet was in full swing, bernard arnault set up the largest Internet investment fund in Europe at that time, hoping to build a powerful network boutique empire. By acquiring dozens of online startups, he established a company called Europ@web. He wants to compete with companies such as Softbank.
Bernard arnault still made money. He only invested $500 million in Europ@web, and he earned more than $ 10 billion from this book alone. He only invested $57 million in LibertySurf, another Internet company, and according to the manager of Europ@web, the value of his shares in Liberty Surf has now reached $654.38 billion.
Goldman Sachs predicts that from the second quarter of 2004, the boutique industry will fall into a downturn. This prediction is not valid for LVMH. In the second quarter, LVMH revenue increased by 65,438+02% to 2.9 billion euros ($2.5 billion). In the first half of 2004, although the growth of major markets was slow, the operating income of LVMH company still increased greatly.
Compared with the same period in 2003, LVMH's operating income increased by 65,438+02% in the first half of 2004, reaching 5.6 billion euros (US$ 47). This is mainly due to the strong sales growth of LVMH's fashion and leather products department. In the first half of the year, the total revenue of LVMH Fashion and Leather Branch increased by 18%, reaching1700 million euros. The revenue of perfume and cosmetics branch reached 65.438 billion euros, up 654.38+05% year-on-year, among which the perfume sales of JAdore branch reached 65.438 billion euros for the first time, which was the first perfume company to obtain such huge sales in more than ten years. Retail business income also increased by 15%. Hennessy is another star of LVMH. Thanks to the introduction of Hennessy pure white wine in 2003, the total operating income of Hennessy wine increased by 23% in the first half of 2004.
The company predicts that the annual total revenue and operating income will increase by no less than 10%. Gucci, ranked third in the boutique industry, lowered its annual sales and profit expectations. Bernard arnault is the happiest in the face of a good situation. However, industry experts are increasingly worried that LVMH's prospects may be affected, because bernard arnault has stretched its hand too long and entered some areas where the profit margin is far lower than that of the boutique industry.