Why Gucci and Dior’s help with rebuilding Notre Dame makes good business sense

Apr 25 , 2019

The city of Paris, its streets and landmarks, have held a special role as the artistic centre of the fashion industry since its earliest days, so to restore the cathedral is to preserve its own history. Photo: AFP

Donations towards rebuilding the fire-damaged cathedral from LVMH’s Bernard Arnault, Kering’s Francois Pinault and the Bettencourt Meyers family are a smart business move, writes Andrea Felsted

If the fire at Notre Dame Cathedral in Paris had happened 20 or 50 years ago, France’s luxury fashion houses would surely have rushed to support its reconstruction as quickly as they did this month.

There is no doubting the sincerity of LVMH, Kering and their founding families, who led the way with donations after the devastation of the fire that started on April 15.

The city of Paris, its streets and landmarks, have held a special role as the artistic centre of the industry since its earliest days, so to restore what has been lost is to preserve its own history.

Yet more than a century after Coco Chanel sold her first hat, the titans of luxury have even more reason to ensure Notre Dame recovers.

And it is not just that they are among the wealthiest in France – LVMH’s Bernard Arnault is France’s richest man and Francois Pinault, who created Kering, ranks third. L’Oreal and its principal shareholder, the Bettencourt Meyers family, are also key donors.

Fashion generates 2.7 per cent of French gross domestic product. Luxury, including L’Oreal, represents 19.8 per cent of the CAC 40 index, the benchmark French stock market index.

With such a sizeable share of the nation’s business, it’s only natural that the leading producers of high-end goods would step up to preserve one of their country’s iconic locations.

It’s important that they do, because selling high-end goods has changed over the past decade. The lines are blurring between fashion, art, travel and culture, and developing a brand depends on so much more than offering the latest “It” bag. Success means blending all these elements together, so there’s a drive to branch out.