Bernard Arnault & family:
Bernard Arnault heads the LVMH conglomerate of roughly 70 fashion and beauty businesses, including Louis Vuitton and Sephora. In January 2021, LVMH purchased American jeweler Tiffany & Co. for $15.8 billion, thought to be the greatest luxury brand acquisition ever.LVMH invested $3.2 billion in 2019 in the premium hospitality business Belmond, which owns or runs 46 hotels, trains, and river cruises.
His father built a minor fortune in construction, and Arnault got his start by putting up $15 million from that firm to acquire Christian Dior in 1985. Four of Arnault's five children work in different corners of the LVMH empire: Frédéric, Delphine, Antoine, and Alexandre. Elon Musk did not stay long as the world's wealthiest person. A little more than a year after hitting the top, he has been overtaken by 73-year-old French billionaire Bernard Arnault, according to experts at Forbes. On December 20, they calculated Arnault's wealth to be $180.2 billion (€169.8 billion), which is roughly $17 billion greater than Musk's.
A luxury empire:
Arnault is the co-founder, chairman, and CEO of LVMH, which is also known as Moet Hennessy Louis Vuitton. His holding company is its biggest investor and holds the majority of voting rights in the publicly listed corporation.
This is not his first time as the world's richest person. He temporarily attained the status in 2019, 2020, and 2021. If Musk can turn around Twitter rapidly, Arnault may not hold the title for long. Still, the Frenchman's feats are the stuff of legend.
A luxury empire LVMH is a Paris-based corporation made up of 75 unique brands of primary beverages, high-end apparel, and cosmetics. In 2021, it earned sales of €64.2 ($68.2 billion), 20% higher than in 2019. Fashion and leather items accounted for 48% of revenue.
The business—the biggest luxury enterprise in the world—has over 175,000 workers and 5,500 outlets. In November 2022, its market worth was roughly €371 billion, according to Statista projections, making it one of the most valuable firms in the world—ahead of Mastercard, Chevron, and Nestle.
Arnault is low-key and not well-known outside of France compared to others on the world's wealthiest list. However, the company's subsidiaries are anything but lowkey and include several traditional brands like Bulgari, Dior, Fendi, Givenchy, and, of course, Louis Vuitton. They also own the retailer Sephora and several Paris department stores. The company's oldest brand is Chateau d’Yquem, which was created in the late 16th century.
In America, Arnault gained notoriety when he acquired the famed jeweler Tiffany & Co. in 2019 for approximately $16 billion. In Germany, he made news in early 2021 when he purchased a majority stake in Birkenstock, albeit it is still being determined determined how the sandal producer can be converted into a premium brand.
Transforming Louis Vuitton bags into billions:
Transforming Louis Vuitton bags into billionsArnault was born in northern France, near the Belgian border. After graduating from engineering school, he joined his father's construction firm. There he concentrated on real estate development and quickly became its president.
In 1984, he took over a bankrupt corporation that included Christian Dior and the department store Le Bon Marche. It was his entry into the premium market. LVMH was formed in 1987 by the merger of Louis Vuitton and Mot Hennessy. He swiftly pushed others aside in a hostile takeover and was made chairman of the executive management board in 1989, a job he has retained ever since.
Placement of vintage Louis Vuitton vehicles on top of one another
The placement of vintage Louis Vuitton vehicles on top of one another Renault maintains an eye on the future while never forgetting the past. Image: Louis Vuitton/Picture Alliance/DPAA After becoming the sole leader, he proceeded on a decades-long, multibillion-euro acquisition binge, sucking up one firm after another. Many of the companies had been poorly managed and had become antiquated, so he brought in contemporary management and recruited fresh designers to spice things up.
Planning for the future:
Reportedly termed "B.A." inside the firm, Arnault was characterized as the "Lord of the Logos" by fashion critic Suzy Menkes in a 1999 International Herald Tribune feature. She also placed her finger on the secret to his success then and today.
"The idea is to be current and modern and to have the brands speak a global language," she wrote. "And Arnault argues that retaining the distinctiveness and uniqueness of each brand is the fundamental objective, inside a reduced corporate structure." This method has helped each brand preserve a degree of individuality while growing more professional.
The corporation has focused on growing, primarily via expansion in Asia, its greatest market, followed by the United States and Europe. Its slick advertising is aspirational. They sell less expensive things like belts, caps, and anything else with a brand to attract younger shoppers and get them hooked.
Just as essential, Arnault believed in the potential of the internet. Everything was going online, and LVMH would follow suit without losing its unique image. Many companies now have lavish websites and online stores and are no longer embarrassed to publicize their prices.
A shuttered Louis Vuitton shop of the GUM State Department Store, in Moscow, Russia
A shuttered Louis Vuitton shop of the GUM State Department Store, in Moscow, RussiaLVMH shuttered its outlets in Russia following the invasion of Ukraine. Image: Evgeny Odinokov/SNA/imago imagesPlanning for the future today, LVMH is a family affair. All five of Arnault's children work alongside him in various roles. Always neatly dressed, Arnault has a full head of grey hair and is quite reserved. Colleagues seldom speak about him. We do know that he is a keen tennis player and appreciates music and collecting art. For a brief period, he owned the Phillips de Pury auction house.
In 2014, the Louis Vuitton Foundation launched in Paris. The Frank Gehry-designed modern art museum is home to Arnault's collection and is meant to be passed up to the city one day. He has also donated millions of dollars to charity and to renovating Notre Dame Cathedral.
The main issue now is: What's next? Which one of his offspring will take over the company? Is any one of them predestined to be his successor, or will it be split among them? And is the firm still on the prowl? Chanel, Armani, Hermes, and a lot of other labels are still out there. But Arnault is not alone. His technique of grouping together family-run luxury enterprises has encouraged others like Richemont and Kering to do the same. They may be rivals, but Arnault built the luxury blueprint.
..,.........
