The new machine generated billions of dollars for the super-rich



A pair of Christian Louboutin high heels, Dr. Martens' brand boots and Birkenstock's cross-strapped paddle sandal are three completely different types of footwear.  However, they have one thing in common that the owners of these brands are making billions of dollars.

Exor NV is a holding company of Agnellis, an Italian billionaire family that owns the Ferrari brand.  Exor announced last week that it bought nearly a quarter of stake in Christian Louboutin SAS.  Accordingly, the deal will bring assets worth at least $1.2 billion.

The new machine generated billions of dollars for the super-richThe owners of this brand are making billions of dollars. / ph: Christian Louboutin

 The deal came after two other recent deals involving owners of two other well-known shoe brands.  Footwear maker Birkenstock was sold to L Catterton with a valuation of around 4 billion euros ($4.8 billion).  Meanwhile, Dr. Martens Plc.  conducted an IPO worth USD1.8 billion.

 Birkenstock brought in billions of dollars to the founders Christian and Alex Birkenstock, while the third brother Stephan sold his shares in 2013. Dr. Martens helped the family found the brand that created a fortune of more than 500 million USD.

 Meanwhile, Yeezy, the shoe and apparel business of popular rapper Kanye West, was recently valued at between $3.2 billion and $4.7 billion by UBS Group.  Yeezy's Adidas in partnership with Adidas sneaker sales grew 31%, bringing last year's annual sales to nearly $1.7 billion and bringing Yeezy $191 million in royalties.

The husk sandal horizontal straps and thick sole boots are not exactly luxury items.  However, the pandemic has caused many people to work and interact at home whereby consumers find products that bring both physical and emotional comfort.  "Doc Martens" and "Berks" are special words, which have remained in popularity for generations, from those born in the 1970s to KOLs of Generation Z.

 Meanwhile, while not as comfortable or as nostalgic as above, Louboutin's spearhead heels are a strong bet for the return of parties, office life and opportunity.  let the sisters "show off".

Founded in 1991, Christian Louboutin has flourished with 150 stores in 30 countries.  Exor said it sees the brand's growth potential in the Chinese market and e-commerce.

 After the Exor deal, the founder of Louboutin (58 years old) and the partner Bruno Chambelland (72 years old) will jointly hold a majority stake in the company.  The deal is expected to be completed in the second quarter of this year.

 Companies' resale decisions can be a key factor in attracting owners of family businesses across the entire fields participating in auction events.

Accordingly, a large amount of liquidity together with a vibrant market pushed prices to soar.

 Italian publisher Panini is a manufacturer of famous football stickers that are used to collect and sold by fans around the world.  The company is mulling resale possibilities and has already attracted interest from a wide range of potential audiences.

The pandemic has prompted a change in the traditional footwear industry, which has been around for a long time.

 Despite the pandemic pressure on the economy, especially the retail sector, the wealth of luxury giants still skyrocketed in the past year.  The richest person in Europe and the backer of the L Catterton deal to buy Birkenstock - Bernard Arnault, has seen his fortune increase by $69 billion as LVHM shares doubled.  His rival, Kering SA founder Francois Pinault, also recorded a net worth of more than $20 billion.

The luxury segment has performed exceptionally well over the past year and has proven that every category can be flexible in times of recession.

 The driving factor for all of this is belief in post-pandemic recovery.  Online shopping for luxury goods is expected to become more active as the Chinese economy recovers.  This is an important market for the world's most expensive brands.

 Chinese consumers accounted for about a third of the global luxury market before the pandemic. However, most of their purchases are taking place overseas. Right now, they can't go travelling and luxury brands need a huge boom in e-commerce. 

The new machine generated billions of dollars for the super-rich

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