LVMH CEO Bernard Arnault’s “Private” Stake in Richemont

Welcome to the 44th edition of Maximalist! Dive into the ultimate guide, filled with insider insights into the world of fashion, art, real estate, travel, jewelry, and horology.

The world of luxury is never boring, and this week is no exception. Let’s dive in!

Markets

On this week’s agenda:

1. LVMH CEO Bernard Arnault’s “Private” Stake in Richemont

2. Ferrari Moves Into Electric Cars with New €200m State-of-the-Art Factory

3. The Results of Christie's Vivienne Westwood's Legacy Auction

4. 7 NEW EU Countries Attractive Tax Benefits for Expats

5. REVOLVE Group Acquires Majority Stake in Alexandre Vauthier

LVMH CEO Bernard Arnault’s “Private” Stake in Richemont

Bernard Arnault, the driving force behind LVMH and its majority shareholder, is reportedly taking a private stake in rival company Richemont, a move outlined in a recent Bloomberg article. Given Arnault's strategic approach to investments, this move is seen as anything but coincidental. Despite the lack of formal comments from both conglomerates, this news alone has already boosted Richemont’s share price by 2.6%.

Speculations abound regarding the true nature of this stake, suggesting it could either be a diversification of the Arnault family’s personal investments or a strategic play by LVMH to enhance its footprint in the thriving jewelry market, dominated by major brands like Cartier.

The jewelry sector remains ripe for consolidation, a stark contrast to the watchmaking sector where a few key players control a significant market portion—five brands alone make up 53% of the market. LVMH’s jewelry brands, including Bvlgari, Tiffany & Co., and Chaumet, have yet to reach the market presence of Cartier and Van Cleef & Arpels, despite Tiffany & Co.’s ongoing evolution since its acquisition by LVMH in 2021.

An alignment with Cartier and Van Cleef & Arpels would not only bolster LVMH’s presence in branded jewelry but also amplify its 5.8% market share in the watch sector, which features brands like Bvlgari, TAG Heuer, Hublot, and Zenith.

Meanwhile, Cartier stands as the second-largest brand in the Swiss watch industry, boasting CHF 3.1 billion in sales for 2023, as per Morgan Stanley x Luxeconsult reports. It remains a pivotal player with iconic products like the Santos watch.

Richemont’s portfolio includes other noteworthy brands such as Vacheron Constantin, which recently entered the billion-dollar brand club with CHF 1.1 billion in 2023 sales.

Should LVMH successfully integrate Richemont’s offerings, it could potentially quadruple its market share to approximately 25%, surpassing the Swatch Group. This would elevate LVMH’s Watches and Jewellery segment from 13% to about 33% of the group’s total sales, according to data from 2023.

This move would also grant LVMH access to Richemont’s substantial industrial resources, developed over the last 25 years, and markedly enhance its jewelry division by incorporating two iconic brands: Cartier and Van Cleef & Arpels.

Moreover, LVMH’s acquisition strategy is further evidenced by the recent purchase of SWIZA, and its subsidiary L’Epée 1839, known for its sophisticated mechanical watches, reinforcing LVMH's commitment to expanding its dominance in the watch and jewelry industry.

Ferrari Moves Into Electric Cars with New €200m State-of-the-Art Factory

Ferrari is gearing up for a major shift in its production line with the unveiling of a new €200 million facility at its Maranello headquarters, dedicated to manufacturing its inaugural all-electric vehicle. The electric model is scheduled for a late next year reveal, with production commencing at the start of 2026 in the newly constructed e-building.

While details remain scarce, Ferrari’s CEO, Benedetto Vigna, assured that the vehicle will align with Ferrari’s legacy of high-performance vehicles, albeit with minimal details disclosed regarding its design, capabilities, or cost. "It’s going to be a Ferrari, and we can say one thing - it will have four wheels," Vigna quipped during the opening ceremony.

In developing its electric powertrain, Ferrari is crafting its own technology but will source battery cells externally, allowing for ongoing adaptations as advancements in technology emerge. Vigna emphasized that the transition to electric does not signify a departure from Ferrari's commitment to delivering exhilarating automotive experiences. "People buy a Ferrari because when they get in a Ferrari they have a lot of fun, so when we do an EV, we have to do it in the right way," he explained.

The CEO also highlighted that customer demand for electric models is robust, with no apparent resistance to Ferrari’s electric ventures. He shared insights into the varied consumer perspectives on electric vehicles, indicating a diverse market expectation and acceptance.

Despite the shift towards electric, Ferrari plans to continue producing internal combustion engine (ICE) and hybrid models, supported by developments in carbon-neutral fuels. This commitment extends to the use of such fuels in Formula 1, with innovations potentially transferring to consumer vehicles. "We’re working with a partner for carbon neutral fuel for F1, and usually the tech from there comes to the road; we believe that ICE cars still have a runway and this will be supported by developing fuels - the cut-off is 2036 but many things could change," Vigna stated.

Vigna concluded with a call to action for continuous innovation and alertness in the industry, referencing historical examples of companies that failed to adapt to market changes. He stressed the importance of competitive agility, reflecting the ethos of Ferrari’s founder, Enzo Ferrari, to always strive to outpace the competition.

The new factory, built on the site of former industrial units, represents an expansion of Ferrari’s production capabilities, integrating advanced personalization options for both traditional and electric models. This strategic enhancement aims to boost profitability and adaptability in Ferrari’s future operations.

The Results of Christie's Vivienne Westwood's Legacy Auction

Christie's has recently concluded a landmark auction, "Vivienne Westwood: The Personal Collection," which spectacularly raised a total of £754,488. The event featured both live and online formats, successfully selling every item from the iconic British designer’s personal collection. The proceeds from the auction have been directed to charitable organizations close to Westwood's heart, including The Vivienne Foundation, Amnesty International, Médecins Sans Frontières, and Greenpeace.

The collection included a wide array of Vivienne Westwood's personal items, spanning her revolutionary four-decade career. Among the highlights were her iconic fashion pieces and "The Big Picture – Vivienne’s Playing Cards," a set of limited-edition prints that Westwood created as part of her strategy to promote environmental activism. The auction's top lot, the playing cards, garnered £37,800, exemplifying the collection's unique appeal.

Significant pieces also included a silk taffeta corset gown from Westwood’s 'Dressed to Scale' Autumn-Winter collection, famously worn at a gala in her honor at London's Victoria & Albert Museum, which fetched £25,200. The event also saw high interest in Westwood's jewelry, with a faux-pearl choker featuring an 'orb' pendant reaching £10,080 after spirited bidding. These items underscored Westwood's belief in the longevity of clothing, with her signature hand-stitching evident on several pieces, including the 'Gaia The Only One' 'Cinderella' dress from the Spring-Summer 2011 collection, which sold for £25,200 against an estimate of £2,000–3,000.

The auction attracted a diverse audience, resonating particularly with public institutions and a younger demographic, including Millennial and Gen Z admirers of Westwood's fashion legacy and her environmental campaigning efforts. The live auction vividly captured the essence of Westwood's dynamic spirit, with bidders actively participating in the room, by phone, and online through Christie’s LIVE platform.

In addition to the auction, a free public exhibition was held at Christie's headquarters on King Street in London from 14 to 24 June, drawing over 20,000 visitors. The exhibition provided an immersive experience into the breadth of Westwood's influence and creativity, featuring detailed displays of her designs and their historical contexts.

This sale not only celebrated Vivienne Westwood's profound impact on fashion and culture but also highlighted her lifelong commitment to philanthropy and environmental causes. The successful auction and exhibition underscored Westwood's enduring legacy as a designer, punk icon, environmental campaigner, and philanthropist, ensuring her influential spirit continues to inspire and make a difference in the world.

7 NEW EU Countries Attractive Tax Benefits for Expats

As the UK phases out its non-dom tax regime and intensifies its scrutiny of wealthy international residents, numerous high net worth individuals are scouting for new tax havens within the EU. Starting April 2025, rich expatriates residing in the UK will enjoy a temporary four-year respite before they must pay full UK taxes on worldwide income. This has prompted a shift towards European nations with favorable tax policies, ranging from Greece to Switzerland, which propose various benefits such as fixed annual tax payments and non-resident financial statuses.

These countries not only provide more favorable economic terms but also offer distinct cultural and lifestyle prospects. Here, we detail seven European nations that are becoming appealing to high net worth individuals looking for new tax residences.

European Havens for Wealthy Individuals Seeking Tax Benefits

1. Greece: Non-dom Investor Program

   • Duration: 15 years

   • Greece introduces a non-dom system that requires a €100,000 fixed tax per year. This applies to individuals not residing as tax citizens in Greece for seven out of the past eight years. The policy extends 15 years and includes family members at an extra €20,000 annually, provided a €500,000 investment in Greece's economy is made.

     

     Ekali, Utopia

2. Ireland: Non-dom System for Banking Transactions

   • Duration: Indefinite

   • Similar to the old UK model, Ireland's indefinite non-dom scheme taxes only the funds transferred into local bank accounts, with evidence required that Ireland is not the main home of the individual.

3. Italy: Flat Tax Framework

   • Duration: 15 years

   • Italy offers a €100,000 annual flat tax on overseas income for a 15-year period, aimed at new applicants who have not been tax residents for nine of the past ten years. This extends to family members for an additional €25,000 per person annually.

4. Malta: Non-dom Status for Foreign Residents

   • Duration: Indefinite

   • Malta's permanent non-dom regime taxes income only if it is remitted to Malta and sometimes on income earned locally, depending on residency status.

5. Switzerland: Lump-sum Taxation

   • Duration: Indefinite

   • Switzerland’s lump-sum taxation is calculated based on living costs instead of income, ideal for non-working residents with no Swiss tax residency in the past decade. Some cantons, however, no longer offer this option.

6. Monaco: No Income Tax for Residents

   • In Monaco, a no income tax policy is in place requiring residents to own property and spend a minimum of 186 days annually in the principality to enjoy exemption on worldwide income.

7. Andorra: Competitive Tax Rates

   • Andorra imposes a 10% flat tax on foreign income, with measures to prevent double taxation. Residency can be achieved through long-term property rental and proof of financial solvency.

     

     Ordino, Andorra

Looking Ahead: The Shift in Tax Strategies

With the UK's revamped tax strategy for wealthy individuals, more are turning to the European nations that promise not only significant tax advantages but also high living standards. As global tax laws continue to evolve, the allure of these countries is expected to grow, potentially leading to an increase in their wealthy expatriate populations and confirming their reputation as prime locations for tax efficiency and lifestyle advantages.

REVOLVE Group Acquires Majority Stake in Alexandre Vauthier

Los Angeles-based REVOLVE Group, Inc. has announced its acquisition of a majority stake in Alexandre Vauthier, marking a significant expansion of its luxury fashion segment. This strategic acquisition is set to elevate REVOLVE’s presence in the high-end fashion industry.

Michael Mente, co-CEO and co-founder of REVOLVE Group, expressed enthusiasm about the partnership, stating, "We are thrilled to partner with Alexandre Vauthier, a distinguished name in haute couture. By integrating our impactful brand marketing strategies and operational excellence with Vauthier’s visionary designs, we are set to ignite a new era of fashion influence in luxury to build an iconic French maison."

Alexandre Vauthier is celebrated for its exquisite couture designs and craftsmanship, having established a notable position within the luxury fashion world. The brand has been a successful component of FWRD’s luxury brand portfolio, resonating strongly with its sophisticated clientele. This partnership will utilize REVOLVE and FWRD’s advanced marketing strategies and data-driven merchandising techniques along with Alexandre Vauthier’s unique brand identity and craftsmanship to propel the French label to new heights.

Alexandre Vauthier shared his optimism about the collaboration, noting, "When I first met with the REVOLVE team, I immediately felt their understanding of growing a haute couture business for today’s consumer. I look forward to this new chapter for my house with the added metier which REVOLVE offers."

The collaboration will officially kick off with an exclusive, invite-only dinner during Paris Fashion Week. Following this, Alexandre Vauthier’s designs will be available on FWRD and alexandrevauthier.com this coming fall, with a show planned for Paris Couture Week in January 2025.

This acquisition underscores REVOLVE’s commitment to expanding its portfolio and adapting to the evolving preferences of its global consumer base. It also aims to foster growth, innovation, and excellence within the fashion industry.

As part of the transaction, REVOLVE will contribute purchased assets to a newly formed entity and will invest six million euro over the next three years. Additional terms of the deal were not disclosed.

Alexandre Vauthier, known for his work with Thierry Mugler and Jean Paul Gaultier, launched his brand in 2009. Since 2014, his house has been a member of the Chambre syndicale de la Haute-Couture and participates in the official calendar of this prestigious fashion week. Vauthier's designs, which are carried in 150 retailers worldwide, are celebrated for their innovative fabrics and techniques that highlight the female form, drawing a global following that includes icons, actresses, and influencers.

Thank you for supporting the world of luxury.