Bernard Arnault On Economics, Acquisitions and the Internet

Suzy Menkes interviewed Bernard Arnault at the IHT luxury seminar in Moscow. The video is below, but in a nutshell, Arnault thinks the U.S. economy will slow down, but not go into recession. This, he says, would make it an ideal time for LVMH brands to gain market share as they have done in past periods of crisis. On the acquisition front, he's not ruling out another buy if prices come down to a more reasonable level, which he thinks they will now that the funds are getting out of the game. And, while he's happy to be using the net to boost his brands -- did you know Sephora is now the largest e-retailer of cosmetics in the U.S.? -- he seems disinclined to make another pure internet play. "We are not using it as a tool to expand sales per se," he said. "I think if you are a Christian Dior or Louis Vuitton customer during Christmas time and you want to buy the product but you don't want to queue in shops where we have a lot of customers, it's easier for you on the net. That's the way I see it in the future."