Sidney Toledano, CEO at Christian Dior, shows his optimism regards the European economy’s recovery in the near future, calling out recently elected French President Emmanuel Macron’s promises to reform labour market regulations.
The market expects Christian Dior to enjoy a really good year on the trading floor thanks to its new products and a recovery in China, once its bigger market. The stock’s performance is closely correlated with those of LVMH, as it controls 40.9 percent of the French couture house. And they will be even more correlations between the two stocks as LVMH finalises the acquisition of the Dior Couture business in the coming weeks.
Toledano said that China is growing in priority for the Paris-based company, and that the company has gained market share in the Asian country. Unlike some other luxury brands, Dior did not see demand fall during the anti-graft drive, he said. Xi’s campaign clamped down on the culture of gifting expensive items to government officials.
“When we started in China 20 years ago, people said we should start small, with smaller products. But we decided to come with ready to wear, couture, we wanted to start on the right foot,” said the 65-year-old Toledano in an interview with Bloomberg. “We have a good positioning and we continue to serve the new generation.”
“We have a new president — I think this will be very positive for the economy,” said Toledano in an interview with Bloomberg TV in Shanghai. “I am optimistic about the economy and that the coming years will be better. And our middle class will become upper class as we see happen in China, and this is good for luxury.”
In France, Macron wants to make hiring and firing easier and to move the country’s collective bargaining on wages and working time from the industry to the company level, as well as placing a cap on severance packages awarded by industrial tribunals.
It’s worth recalling that Bernard Arnaut, fashion mogul behind the LVMH emporium, also openly endorsed Macron days before the French went to cast their votes. Arnaut wrote in ‘Les Echos’ an open letter explaining the reasons why he would choose this candidate, describing Macron’s program as a path of “hope and reason” and noting that it was built on the conviction that the private sector is key to job creation.
“I share this founding conviction without reserve: A company that is not hindered in its development, that is not thwarted from its growth path by unreasonable taxation or a cumbersome bureaucracy, has no other project but to invest, innovate and create sustainable employment,” said the LVMH’s first executive. He concluded by saying: “It is without hesitation that I will vote for Emmanuel Macron.”
As reported by WWD, Macron has some ties to the fashion industry, being reportedly close to the tech entrepreneur Xavier Niel, partner of Delphine Arnault, executive vice president of Louis Vuitton and daughter of Bernard Arnault.
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