Luxury, Banking, and Finance

Luxury-specific production has expanded through upstream–downstream integration, from commodities (silk, precious metals, etc.) to processing industries and luxury houses. Banks financed companies, trade, foreign exchange, and flows of payment. They were partners for the valuation of treasuries and for the lightening of the debts of their clients. They accompanied them through the transferrals of property, within dynasties or outside. Starting in the 1980s, business bankers supported companies building capital for luxury firms: they helped them to integrate the game of financial markets, to open their capital and to ensure the dynastic transition within family companies. For managers of companies in the luxury sector, the challenge has ever been to create strong self-financing capacities in order to allow a distribution of dividends that will ensure the loyalty of family shareholders, finance investments (workshops, shop networks), and contain indebtedness. The volatility of markets and the financialisation of capitalism led investment bankers to join offensive or defensive pools when bids were launched, or to be part of the M&A teams.