How Bernard Arnault Built A $450 Billion Empire & The Brands LVHM Owns
By Josh Bobrowsky
Bernard is the founder of LVHM, the parent company of Louis Vuitton, Hennessy and TAG Heuer. He has built a personal fortune estimated at over $200 billion.
He has built a brand around owning, acquiring and creating luxury goods across multiple categories. Here is a brief history of his life.
Early Life and Education: Born in 1949 in Roubaix, France, Bernard Arnault was the son of a manufacturer who owned a civil engineering company, Ferret-Savinel. He studied engineering at the Ecole Polytechnique in France, graduating in 1971.
Entry into the Family Business: After graduation, Arnault joined his father's company. He persuaded his father to liquidate the construction division and focus on real estate, which turned out to be a very profitable move. In 1976, he became president of the company, which he renamed Férinel Inc. The company specialized in holiday accommodation.
Move into Luxury Goods: In the 1980s, Arnault took advantage of the economic circumstances to acquire various businesses. He purchased a bankrupt textile group that owned the brand Christian Dior. He sold all the company’s assets, keeping only the prestigious Christian Dior brand. He then used this as a beachhead to take control of LVMH (Louis Vuitton Moët Hennessy) in 1989.
Expanding LVMH: Once he took control of LVMH, he began a strategy of acquiring more luxury brands and fostering them with a combination of investment and autonomy, allowing each brand to maintain its unique identity while benefitting from the scale and reach of the LVMH Group.
Present Day: Arnault remains the chairman and CEO of LVMH, overseeing a conglomerate of 70+ brands spanning fashion, wine and spirits, perfumes and cosmetics, watches and jewelry, and selective retailing.
Here is a quick look at the brands LVHM owns:
Fashion & Leather Goods
Louis Vuitton, Fendi, Celine, Christian Dior, Givenchy, Kenzo, Loewe, Marc Jacobs, Pucci, Berluti, Nicholas Kirkwood, Loro Piana, Rimowa.
Wines & Spirits:
Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Belvedere, Chandon, Ao Yun, Volcan De Mi Tierra, Terrazas de los Andes, Cloudy Bay, Newton Vineyard, Numanthia, Cheval des Andes, Cape Mentelle, Bodega Numanthia.
Perfumes & Cosmetics:
Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty Beauty by Rihanna.
Watches & Jewelry:
Bvlgari, TAG Heuer, Hublot, Zenith, Fred, Chaumet, Dior Watches, Tiffany & Co.
Selective Retailing:
Sephora, Le Bon Marché, DFS, Starboard Cruise Services, Jardin d'Acclimatation.
Conclusion
Bernard has built arguably the most powerful luxury brand in the world. To close out I’ll end with a quote from Bernard:
The key to a business, regardless of its size, is for the owner to have an understanding of finance. The owner of a small business should not have the mentality of a small business owner, but of a big business owner. If you think big, then it's going to be big."
Cheers
Josh Bobrowsky
Skybrook Founder & CEO
Very good