Hello and welcome. You are listening to Patrick Boyle on Finance, a podcast exploring ideas from quantitative finance, examining events occurring in markets right now and financial history to see what lessons can be taken away, including interviews with some of the most interesting people in the world of finance. To learn more about the podcast, visit onfinance.org.

In March this year, Fortune magazine announced that Elon Musk was no longer the world's richest

person, after being overtaken by Bernard Arnaud, the founder of Luxury Goods Conglomerate LVMH, a sign of

how big the market for luxury goods had become. Elon has since retaken his position at the top

of the list, but is just barely ahead. LVMH is a family-controlled luxury goods conglomerate, built through

acquisition since the 1990s. It was the first European company to cross the half a trillion

dollar market valuation threshold and is the only European company to be ranked among

the top 10 biggest global companies.

The personal luxury goods market has seen amazing growth over the last 25 years.

Financial crises, a pandemic, geopolitical problems, inflation and a squeeze on the cost of living

have done absolutely nothing to slow the rise of the luxury sector.

It posted a record year in 2022 where sales of personal luxury goods hit $385 billion, only outdone within the luxury segment by high-end cars.

The luxury goods market has grown in terms of categories two in recent years.

Luxury was once made up of things like clothing, jewellery, wines and cars, but in recent

decades there's been huge demand for high-end kitchenware, limited edition trainers and

things like makeup and candles.

The definition of luxury goods is of course somewhat vague, but it usually describes objects

that not only have a very high price, but that promise quality craftsmanship and an air

of exclusivity.

Luxury goods shouldn't be something everyone has,

but more and more people of different ages and income brackets are getting caught up in the world of high-end goods,

driving the industry to an incredible boom.

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