LVMH CEO Bernard Arnault is reportedly preparing to visit China following the post-pandemic reopening, with the aim of relaunching sales in the Chinese luxury market, one of the most important in the world.
It would be Arnault’s first visit to China since the start of the pandemic. However, the trip could be postponed due to unforeseen events, according to anonymous sources.
Arnault’s visit comes at a time of concern over the slowdown in China’s economy, which declined last month. As a result, shares of some global luxury firms, including LVMH and Hermes International, also fell after a positive rally earlier in the year.
On Wednesday, Arnault lost the title of richest person in the world to Tesla CEO Elon Musk following a drop in LVMH shares in Paris.
The Beijing government is trying to reassure international business leaders, including JPMorgan CEO Jamie Dimon and Elon Musk, that China is not hostile to foreign capital. Luxury brands, meanwhile, are stepping up efforts to win over China’s younger generation, with Generation Z expected to lead China to become the largest luxury market by 2025, overtaking the US and Europe. Chinese consumers already account for about a fifth of the global luxury market, estimated at $325.4 billion, according to PwC.