I was surprised to see Bernard Arnault as the richest man in the world, above Jeff Bezos, Elon Musk, and Bill Gates. He owns an empire of fashion and jewelry brands like LV, Givenchy, Tiffany Co. etc. as well as luxury booze companies like Moet and Hennesey.
How are fashion and jewelry businesses worth more than tech and innovation in the year 2021?
Are there really masses out there spending all there disposable income on 500 dollar t shirts and 6 thousand dollar bags? Flexing on Instagram and popping bottles in the club. I’ve seen the type on Instagram, but I thought surely they must be a minority, and not large enough a market to top giants like Elon Musk and Amazon. I must be really out of the loop.
In: Economics
Not masses. Tech giants have a huge market, but sell lots of less expensive things. Their profits balloon due to sales volume.
Exclusive fashion has a much smaller market, and much higher production cost (mostly labour), but the markup is absurd because of exclusivity. And lets be realistic, once you have enough money to buy top quality versions of the things the masses buy, the next step is buying things no one (or very few others) will have. Luxury brands do production items, but also limited editions and single editions. Add a few zeroes to the price with every level of exclusivity.
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