T.J. Letsa’s Post

【Succession plan of the lux fashion empire】 Bernard Arnault, the man who tops the Forbes list with 233 billion USD, has paved the way for the succession of his prominent lux fashion empire. The chairman of Christian Dior高級時裝公司 and Chairman and CEO of 酩悅軒尼詩有限公司 appointed his five children to govern the company in a rotating presidency. Starting from his eldest children, each sibling serves a two-year presidency. This governance model will last for ten years or until he is no longer in charge, replacing the single-person governance that he had for 34 years. The luxury industry is always brand-oriented. Knowing well the necessity of working closely with the most cutting-edge designers with excellent management skills, Bernard has assigned his children to enter the front line since their 20s. By doing so, older siblings are promoted while the younger ones accumulated their practical experience. Today, the group is headed by Delphine Arnault, the eldest daughter of Bernard. However, the one to oversee the whole empire is yet to be designated. The succession of roles is still a long process with the hope that the five siblings will always get along. #CUHK #CUHKCFB #FamilyBusiness #FamilyOffice #LVMH Source: 蔡鴻青. (2024). LVMH 集团：为交班铺路的股权与业务设计. 家族企業. (101), 69-70. Photo Source:  Financial Times

New Post: Bernard Arnault’s ‘Succession’: Source says LVMH boss plans to name 2 more sons to board - Bernard Arnault plans to appoint two of his sons to the board of LVMH Moet Hennessy Louis Vuitton SE, as the French billionaire continues to groom his children to potentially lead the luxury empire he founded. Arnault’s nomination of sons Alexandre, 31, and Frederic, 29, could come as early as this week, a person familiar with the matter said, confirming a report from online publication La Lettre. LVMH is due to announce annual results on Thursday. The board nominations would then be subject to a vote at the company’s annual general meeting in April. A spokesman for LVMH declined to comment. The appointments would underscore the family’s firm grip on LVMH. Arnault and his family own about 48% of LVMH shares and nearly 64% of voting rights. Arnault, 74, is the world’s third-wealthiest person, with a fortune of about $161 billion according to the Bloomberg Billionaires Index. He’s been grooming his children in a variety of roles at the company as he develops a succession plan. All five of Arnault’s children work at the firm. Delphine, 48, is chief executive officer of Christian Dior Couture, the group’s second-biggest fashion label after Louis Vuitton. She’s the only Arnault child to currently sit on LVMH’s executive committee.  Antoine Arnault, 46, is responsible for LVMH’s image and communications and is a non-executive chairman of cashmere specialist Loro Piana, which belongs to the company. He is also vice chairman and CEO of Christian Dior SE, the holding company through which the Arnault family controls LVMH. Both Delphine and Antoine became board members before the age of 30. The billionaire founder’s three youngest sons came via his second marriage, to Canadian concert pianist Helene Mercier. Alexandre has overseen product and communications at Tiffany & Co. for the past three years while Frederic runs the group’s watch unit, which includes labels such as Hublot, Tag Heuer and Zenith. Jean, 25, is in charge of developing Louis Vuitton’s watch category. In 2022, Arnault lifted the age limit for his CEO role to 80. LVMH last week announced that his close lieutenant Sidney Toledano, 72, will step down from the executive committee.Subscribe to the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. Sign up for free. #Bernard #Arnaults #Succession #Source #LVMH #boss #plans #sons #boardhttps://lnkd.in/dzh_MCcZ

BERNARD ARNAULT PLANS TO APPOINT TWO MORE OF HIS SONS TO THE LVMH BOARD It's perhaps the latest step in the billionaire's succession plan. Story by: Tori Latham Photography: David M. Benett/Dave Benett/Getty Images for Tiffany & Co. Bernard Arnault’s succession plan may not be any clearer, but the billionaire CEO of LVMH is making some familial moves at his company. Arnault is set to put two more of his sons on the board of his French conglomerate, Bloomberg reported on Monday. Alexandre, 31, and Frédéric, 29, could be nominated as early as this week, an anonymous source familiar with the matter told the outlet. A vote would then occur at LVMH’s annual general meeting in April. (A spokesperson for the company declined to comment to Bloomberg.) Already, two of Arnault’s other children sit on the board: Both Delphine and Antoine, the two oldest kids, became board members before they turned 30. Delphine, 48, is now the CEO of Dior, the second-largest fashion label in the LVMH family. Antoine, 46, is in charge of the entire conglomerate’s image and communications arm. The rest of Arnault’s five children also hold roles within LVMH: Alexandre is currently the head of product and communications at Tiffany & Co.; Frédéric runs the watch unit, including Hublot, Zenith, and TAG Heuer; and Jean, 25, is leading efforts to expand Louis Vuitton’s watch offerings. In all, the family holds about 48 percent of LVMH shares and almost 64 percent of voting rights. Over the years, Arnault has been expanding his family’s hold on LVMH, involving his children in various aspects of the company so that one day they can take over. Back in 2022, Arnault lifted the age limit for the CEO of LVMH to 80, and given that he’s just 74, any succession plans may take years to bear out. But he’s made it clear that he wants his kids to one day run the massive empire he’s created. So far, though, that hasn’t led to any Succession-style antics, with the Arnault children saying that they get along extremely well. Whoever does end up taking Arnault’s place will have big shoes to fill. The Frenchman is currently the third-wealthiest person in the world, with a net worth of $161 billion, according to the Bloomberg Billionaires Index. And LVMH last year became the first-ever $500 billion company in Europe. That sort of status and responsibility may scare off some people. But the Arnaults have demonstrated that they’re much more than just “some people.”

Lost in all the analysis of the High Performance numbers of LVMH is the fact that people, skilled and collaborative human beings, make brands successful, not the other way around. The Arnault family has been raised on a set of luxury rules that in our empirical research we call “The 7 Rules of Emotionally Intelligent Luxury” Combined, the rules inspire a powerful cocktail of strong positive emotions that the Arnaults call “Desire.” That’s accurate, but The Luxury Institute, LLC’s research with HNW and UHNW SuperClients shows that the underlying root emotion is the critical Input: HIGH TRUST in and across LVMH brands and its people. HIGH TRUST starts at the human level, among and between Arnault family members, its Board members, and extends throughout the trusted and trusting senior management, all the way to associates and partners. Then the customers. The financials are Outcomes. When you are witnessing consistently High Performance, know that High Performance behaviors are driven by the critical Input: HIGH TRUST. It doesn’t sound as sexy as Desire, but it creates Deep Desire. The lack of High Performance of most luxury brands is driven at its core by LOW TRUST from managers, associates and consumers, especially in a challenging environment. Reach out. We have the HIGH TRUST solutions. #lvmh #lvmhtalents #trustworthy #trust #luxurybrands

Just a Fashion Minute • Diversity in Fashion We have been all too aware that Fashion and Luxury has a big problem with Diversity and Inclusion (or many of us have), but it seems that in the past two years that DEI appears to be moving backwards, with many companies, large and small reducing the effort and expenditure on DEI or winding up newly created departments altogether. DEI has been thrown into the charity or HR mix and never considered from a commercial perspective. Big business felt obligated or even shamed into admitting there is a problem and was quick to look like they were taking affirmative action - this has been short-lived. As a recent guest on my podcast suggested that post George Floyd and the Black Lives Matter movement, "it's as if the establishment has said "OK Black and other POC, you've had your moment, and now it's time to move on" - which does seem to sum it up. Many of these mega-corporations, namely fashion have in no uncertain terms has exploited the Black culture through sport, music, media, style, and on the list goes but Diversity has once again been relegated to the bench! Is it just a fluke that Virgil Abloh put Louis Vuitton onto a global stage? What do we have to do to get fashion to sit up and take notice, and realise that it makes commercial sense to have a diverse organisation structure in today's society. David M Watts • Just a Fashion Minute

Have you noticed a new brand aesthetic in the post-social world? Failure-core. Failure-core is a brand’s new way to bid for relatability. I noticed Chamberlain Coffee pioneering this aesthetic first, so I give them the credit. Arguably, they needed it the most. Emma Chamberlain, an early-ish YouTube superstar turned Louis Vuitton ambassador, is the first to understand this aesthetic: her cultural currency is being relatable. With an LV-signed contract and a mansion featured in Architectural Digest, the big question for her was how to maintain that reliability. Emma’s answer was Falure-core. Because the classics have taught us, each success story succeeds in its own way; all failures are alike. TLDR: If your brand is looking for ways to build relatability, look into failure-core. It may be an answer. #failurecore #brandstrategy #culturalinsights

🤔 A new trend in brand aesthetics, failure-core, is all about brands embracing their imperfections to build relatability. By highlighting failures, brands can connect more authentically with their audience. Read more about this interesting trend below. #failurecore #brandstrategy #culturalinsights

FREDERIC AND ALEXANDRE ARNAULT SECURE SEATS ON THE LVMH BOARD METAVERSE FASHION MAGAZINE During its annual general meeting held at the prestigious Carrousel du Louvre this Thursday, LVMH, the world's foremost luxury conglomerate, announced the appointment of Bernard Arnault's sons, Frédéric, 29, and Alexandre, 31, to its board. These appointments further solidify the Arnault family's significant presence within the company's leadership, aligning with LVMH's strategic vision for continuity and long-term brand desirability. Both young executives, already holding significant managerial roles—Frédéric as CEO of LVMH Watches since January, and Alexandre as EVP of product and communications at Tiffany—received strong shareholder support, with each nomination garnering approximately 93 percent of the votes. The addition of Frédéric and Alexandre complements the existing board presence of their elder siblings, Delphine and Antoine Arnault, enhancing the family's influence, which controls 48.6 percent of LVMH’s share capital and 64.3 percent of its voting rights. With only the youngest sibling, Jean Arnault, yet to join the board, the meeting underscored a clear path toward leadership continuity. All five Arnault children attended the AGM, underscoring their unified front. The AGM was not just a forum for leadership announcements but also an opportunity for LVMH to share insights into its robust sales growth, visionary projects, and long-term strategies. Bernard Arnault, the 75-year-old chairman and CEO whose retirement age was recently extended to 80, emphasized the importance of family-led governance in sustaining brand appeal and market leadership. "The role of the family helps to foster a spirit of longevity and unity, allowing us to focus not just on immediate financial gains but on maintaining and increasing the desirability of our brands well into the future," Arnault explained to reporters. This strategic focus was evident in LVMH's 2023 sales, which soared to €86.2 billion, with a market valuation surpassing €440 billion. Success stories highlighted during the meeting included Louis Vuitton, which not only exceeded the €20 billion sales mark but also saw its men’s creative director Pharrell Williams' debut show achieve over one billion views on social media—a record in the luxury sector. Additionally, Dior maintained its strong global presence with significant shows in Mumbai and Mexico City. learn more: https://lnkd.in/gTh75KpE #investment #ai #ar #metaverse #fashion #web3 #innovation

The retail industry is evolving, and Puig's decision to exclude next-generation family members from succession plans is a strategic move to ensure smooth transitions and continued success. Learn more about this forward-thinking approach. #SuccessionPlanning

Meet Dr. Chanel Barnes, she took her dream and turned it into reality 💫 Dr. Chanel Barnes started her practice despite having very little resource, and has been nurturing it ever since. "If you have a goal in mind, just pursue that - it's worth it to try." We're inspired by Dr. Chanel Barnes' story, and the passion she has for her work. Your brand matters, don't let your story get lost in the noise of a marketplace. Invest in you, share your story. Watch Dr. Chanel Barnes full story below. Link in first comment ⬇️ #GYBNM #GrowYourBrand #GrowYourPractice #GrowYourClinic