Are LVMH Handbags France's Most Exported Product?

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When you think of the French products exported worldwide, likely brie, camembert (and other fine cheeses), and wine are top of mind. Champagne and Bordeaux wines are, after all, named for those regions of the country.

So a recent analysis of France’s exports may catch you by surprise. Notwithstanding last week’s LVMH 2024 Q1 financial results showing something of a slowdown in the luxury market, LVMH products represent a large portion of French exports. According to consultancy Asterès, as reported in the Financial Times, using 2023 data, LVMH’s exports represented 4% of French exports.

Maybe that’s no real surprise as the luxury conglomerate houses 75 brands in several business lines. The Fashion & Leather Goods Group is LVMH’s largest by more than two-fold. A glance at the 2023 LVMH financial results shows that only about 7-8% of overall sales come from France. China and the United States account for roughly one-third and one-quarter of company revenues, respectively.

But compare LVMH’s 4% of French exports to the numbers for cheese and wine. International sales of those products were overall 3.2% of French exports in 2023. What is unclear in this report is to what extent LVMH’s wine and champagne brands – like Moet Chandon – were included in the calculation of French exports. Moreover, revenues for LVMH’s Wine & Spirits group fell in 2023, a trend that continued in 2024 Q1.

So what does any of this mean? It confirms that LVMH is an important part of the French economy. Any continuing slow-down or decline in luxury spending could have far-reaching effects beyond those for the Arnault family’s LVMH holdings.

In the meantime, is there anyone in the PurseBop community who would choose cheese and wine over a luxury handbag? Brie over Louis Vuitton? Or Camembert over Celine? If so, let us know why.