Former British Prime Minister Tony Blair has reached an agreement in principle to join LVMH. So what can Tony Blair do for the maker of Louis Vuitton handbags? Well, quite a bit, actually. Tony's good friend Bernard Arnault wants Tony to help LVMH Moet Hennessy Louis Vuitton SA crack the potentially huge Indian luxury goods market. But the country has been slow to allow Western retailers to get a foothold. The former prime minister and Middle East peace envoy can help. Reuters reports:
Though few know if Blair has any luxury or fashion flair, investors said his clout and first class network could help LVMH develop its presence in emerging markets, on which it has staked future growth for the next decade.
"Blair could help LVMH open up new markets, get necessary authorisations and resolve complex issues," said Luca Solca, luxury analyst at Bernstein in London.
With its fast growing number of high net worth individuals, India is one of the world's biggest untapped luxury markets after China and it is a country where Blair could make a difference, analysts said.
India, potentially worth $15 billion in annual luxury goods sales according to analysts, has been the laggard of emerging luxury markets because of lack of retail space, excessive red tape, high duties, poor infrastructure and the capping of foreign ownership at 51 percent since 2006.
Given the political opposition, the Indian government has been reluctant to open the country's retail sector more.
Not everyone thinks the move is a good one for LVMH. Former political opponents of Blair are less than thrilled. But the deal is nearly done, say insiders, and an announcement is expected soon. So, will Tony and Cherie be on the front row at Fashion Week?
