Bernard Arnault is the chairman and CEO of LVMH Moët Hennessy, which is the world’s largest luxury goods company. He is also the richest man in Europe with a net worth of $ 94.1 billion. Bernard Arnault further expanded his existing fortune by adding $ 5.1 billion in October 2019, making his net worth $ 99.6 billion.
The rise in his fortune is all thanks to the strong sales at LVMH Moët Hennessy. The luxury house reported its sales grew by 17 % in the third quarter of 2019.
In 2019, LVMH faced a possible threat of decline in sales due to protests in Hong Kong, which slowed down the economy in China. China is an important hotspot for many luxury brands as it contributes 5 % to 10 % of all global luxury sales, according to money management firm Bernstein Research. Despite the threat, the Paris based luxury house still saw a rise in its sales worldwide, especially in Asia.
According to reports released by LVMH, its sales grew by 12 % in Asia alone. The Company further reported its fashion and leather goods division saw an increase by 19 %, which was led by Louis Vuitton and Christian Dior. It also reported its makeup division did well, especially in China.
The main reason behind LVMH not facing any decrease in its sales is the large number of brands the Company owns. LVMH has over 75 brands under its name, including Louis Vuitton, Versace, Fendi, Bulgari and Dior. Hence, any disruption in sales of any one brand will not affect the Company in any major manner.
This proved beneficial to Bernard Arnault as his fortune is growing with the rising sales of his Company. Arnault became the third richest man in the world in June 2019. His net worth at the time was close to $ 100.4 billion. However, due to a fall in shares, his net worth went below the $ 100 billion mark. Now, with the rise in the sales of his Company, Bernard Arnault once more came closer to the centibillionaire status.
Wharton Graduate Eric Tse Becomes Billionaire At 24
Eric Tse, a Wharton graduate, was gifted $ 3.8 billion by his parents in the form of 2.7 billion shares of his parents’ company, Sino Biopharmaceutical Limited.
It was also reported along with the gift, Eric Tse was also promoted to the position of executive director at Sino Biopharmaceutical, after working at the Company for 1 year. As the executive director, Eric Tse will have a salary of $ 498,000 annually plus bonuses.
Now, Forbes lists Eric Tse as the 546th richest person in the world. Moreover, Bloomberg also reported the shares transferred to Eric Tse are equivalent to 21.45 % of the Company’s share capital.
Tse Ping, Eric’s father, founded the billion dollar company Sino Biopharmaceutical in 2000 and serves as the CEO of the Company. Cheung Ling Cheng, Eric Tse’s mother, also serves as the Vice Chairperson of Sino Biopharmaceutical. Theresa, Eric’s older sister, who is currently the Company’s Chairperson, owns 11 % of the Company.
According to a statement released by Sino Biopharmaceutical, the shares were transferred to Eric Tse in an effort to refine the management of the Company and the inheritance of the family wealth. The statement also added the board of directors believe the transfer of shares will not have any material impact on the business operations of the Company.
Eric Tse, who majored in Finance at the Wharton School of the University of Pennsylvania, was also the co founder of the Penn Wharton China Summit. The non profit organisation grew to become America’s largest student organized summit in China.
Despite the sudden increase in wealth, Tse expressed his wish of not wanting to participate in wealth ranking.
Huawei Unknown Facts
Huawei is the world’s largest manufacturer of telecommunication equipment. The Company was founded in 1987 by the 42 year old Ren Zhengfei. Considered one of the world’s largest technology brands, Huawei was valued at $ 105.1 billion in 2018. Here are a few unknown facts about this tech company.
Unknown facts about Huawei
1) Founder Ren Zhengfei came up with the name Huawei after coming across the phrase ‘Zhonghua youwei,’ which meant ‘China has promise.’
2) The name Huawei can be quite difficult for non Chinese people to pronounce. Huawei is pronounced as ‘Waa wai,’ but Huawei’s pronunciation varies by countries. This led the Company to launch a name recognition campaign, where they used “Wow way” to encourage a pronunciation closer to the actual one.
3) Huawei puts more focus on Research and Development (R and D,) with more than 40 % of the Company’s employees working in the R and D department.
4) Huawei’s Ox Horn Campus is famous for its European style architecture. Based in Guangdong, the R and D campus consists of 12 small ‘towns,’ modeled after famous European cities like Paris, Granada and Bruges. The research buildings of every ‘town’ are a replica of popular castles, palaces and many more.
5) Huawei’s 5G tech played a big part in the world’s first remote brain surgery. Dr. Ling Zhipei performed the brain surgery on a patient suffering from Parkinson’s disease. The surgeon operated on the patient, who was 3,000 km away from him, by manipulating surgical instruments with the help of a computer and 5G network. After the success, Dr. Zhipei credited Huawei’s 5G technology for ensuring a nearly real time operation.
6) In the tech industry, Apple is considered a direct rival of Huawei. However, this rivalry did not stop Huawei founder and CEO Ren Zhengfei from using Apple products. Zhengfei considers Apple’s iPhone the best phone in the world and revealed his family prefers Apple’s products over Huawei’s.
Did you find any of these unknown facts interesting? Comment below and let us know.
Netflix To Face Stiff Competition Soon
Netflix, which has been enjoying the status of being the biggest streaming service in the world, will face tough competition, come November. Netflix stayed ahead of many key rivals like Amazon Prime Video and Hulu, since its inception in 2010. However, with giants like Apple and Disney entering the streaming market, the streaming war is expected to enter a new phase by 2020.
Tech giant Apple announced its own streaming platform called Apple+. Apple+ will be made available from November 1st, 2019 in over 100 countries, with a minimal fee of $ 4.99. With the promise of bringing fresh and original content, Apple is investing quite a lot of money in Apple+.
Similarly, Disney is also planning to launch its own streaming service on November 12th, 2019. The streaming service will be available initially in the U.S., Canada, and the Netherlands, prior to its introduction to the rest of the world. With its enormous list of popular movies and series like Star Wars and Pirates of the Carribean, the Disney streaming service is expected to give tough competition to others. With a subscription fee of $ 6.99, Disney is planning to offer every Disney and Pixar animated movie within the first year of its launch.
Moreover, Netflix is also facing competition from other streaming services like A&T’s WarnerMedia, which is planning to launch HBO Max in early 2020. A&T also reclaimed the streaming rights of popular show Friends from Netflix.
With popular shows and movies leaving the platform, Netflix is also facing difficulty in acquiring actors, directors and producers in order to keep the audience interested.
Despite facing such stiff competition, Netflix remained unfazed, with its CEO Reed Hastings stating, “Disney will be a great competitor.” With so many new competitors entering the market in 2020, it will be interesting to see which online streaming service remains at the top.
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