Owners of ‘recession-proof’ brands like Hermès, Tiffany and Chanel rake in BILLIONS | Daily Mail Online

The super-rich owners of luxury brands Hermès, Tiffany and Chanel have raked in tens of billions more dollars this year as shoppers continue to snap up designer accessories. 

While the rest of the world suffers under the strain of red-hot inflation – and hundreds of US retailers are forced to shut up shops – sales of designer goods are soaring.

It’s led experts to label the market as ‘recession-proof’ – with shoppers undeterred by rocketing prices, even after the cost of some Chanel handbags shot up by as much as 17 percent this year.

The trend is in part driven by young people who are living at home with their parents and choosing to splurge the money they are saving on rent.

And it spells good news for the billionaires behind the brands – the majority of whom are French. 

The super-rich owners of luxury brands Hermès, Tiffany and Chanel have raked in tens of billions more dollars this year – despite wider economic uncertainty

The world’s richest woman L’Oreal chairwoman Francoise Bettencourt Meyers, 69, pictured, saw her net worth swell by $21.8 billion since the start of the year

LVMH owner Bernard Arnault – whose empire includes Christion Dior, Tiffany & Co., and Moet & Chandon Champagne – saw his wealth shoot up by $48.6 billion from the start of the year. 

It means the 74-year-old is now worth $210.7 billion – making him $47 billion richer than Twitter CEO Elon Musk, according to Bloomberg’s Billionaires Index. 

Arnault told investors this week that ‘business is good’ – despite wider economic uncertainty. 

Meanwhile the world’s richest woman L’Oreal chairwoman Francoise Bettencourt Meyers, 69, saw her net worth swell by $21.8 billion since the start of the year.

Bettencourt, whose grandfather founded the beauty empire, is now worth $93.3 billion.

L’Oreal – whose luxury division sells brands including Lancome, Yves Saint Laurent (YSL) perfume and Helena Rubenstein – saw its sales jump 13 percent in the first quarter of the year compared to the same period in 2022.

Meanwhile handbag maker Hermès reported a 23 percent jump in sales in the first three months of the year.  

The brand – which is famed for its Birkin and Kelly bags – is still mostly run by the descendants of founder Thierry Hermès.

The family were ranked the fifth-richest in the world in October. 

Separately Francois Pinault, who owns Kering, has seen his wealth climb by 24 percent to $44.3 billion since the start of the year. 

LVMH owner Bernard Arnault – whose empire includes Christion Dior, Tiffany & Co., and Moet & Chandon Champagne – saw his wealth shoot up by $48.6 billion from the start of the year

Chanel owners Alain and Gerard Wertheimer saw their wealth climb by $14 billion collectively while Francois Pinault, who owns Kering, has seen his wealth climb by 24 percent to $44.3 billion since the start of the year

Kering owns a handful of luxury fashion houses including Gucci, Balenciaga and YSL clothing. 

French brothers Alain and Gerard Wertheimer, who own Chanel, also saw their wealth climb by $14 billion collectively.

The low-key brothers are worth $50.2 billion each, according to Bloomberg’s rankings. 

Last year a report by management consultancy Bain & Co., found that the US luxury goods industry was ‘recession-proof’ due to its popularity with young consumers living with their parents.

Its research showed that around 72 percent of the market was made up by either Millennials – those born between 1981 and 1996 – or Generation Z – those born between 1997 and 2012. 

Bain predicted that the designer goods market would grow by 21 percent this year – despite other economic challenges elsewhere. 

Earlier this year Claudia D’Arpizio, a senior partner at Bain and Co., told Dailymail.com that young people are in part trying to make up for all the experiences they missed out on during the pandemic.

She added that many people their 20s have already weathered one financial crisis in 2008 as children – meaning the current cost-of-living crisis has had a ‘reduced impact’ on their consumer confidence.

Hermès raised its prices by around 7 percent at the start of the year – way above its usual 2-3 percent annual increase

‘The luxury market has many resilience drivers which include a diffused YOLO culture, a desire for living missed experiences and a change in consumer attitudes,’ D’Arpizio said.

It comes as dozens of designer fashion houses put up prices – despite continuing to make healthy profits.

This year Chanel chief financial officer Philippe Blondiaux said the brand had to increase its prices in 2023 ‘to account for currency fluctuations and inflation.’

The price of a Chanel classic small flap bag went up by 17 percent, from $8,200 to $9,6000. 

Meanwhile the cost of a Chanel Reissue Large Bag went up to $11,000 from $9,500. 

Similarly Hermès raised its prices by around 7 percent at the start of the year – way above its usual 2-3 percent annual increase.