Economist Podcasts Luxe run out? LVMH
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Jul 31, 2025 
Avantika Chilkoti, Global business writer at The Economist, and Josh Roberts, Capital Markets correspondent, dive into the luxury industry's challenges as LVMH faces financial setbacks despite opening new flagship stores. They discuss the impact of shifting consumer behaviors and concerns over leadership succession within the brand. The episode also explores North Koreans' risky pursuit of South Korean dramas, revealing how this defiance threatens regime control, alongside the economic implications of U.S. tariffs and the weakening dollar.
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LVMH's Luxury Empire and Decline
- LVMH, led by Bernard Arnault, is a colossal luxury firm with 75 maisons including Louis Vuitton and Moët Hennessy.
- Though it thrived during global luxury booms, recent years have seen its revenue and stock value decline sharply.
Challenges Facing LVMH
- Luxury sales are falling due to reduced buying in US and China and tariff uncertainties.
- Price hikes and scandals have also hurt LVMH's appeal, especially among aspirational consumers.
Hermès' Market Strategy Advantage
- Hermès thrives because it targets extremely wealthy clients less affected by economic downturns.
- This focus makes Hermès more resilient than diversified luxury groups like LVMH in challenging times.