Bernard Arnault has finally taken control of Tiffany & Co.
Given that LVMH Moet Hennessy Louis Vuitton SE is the largest contract to date, and an expensive prize fund despite last-minute price cuts, it’s no surprise that the company’s chief executive is adding experienced staff from his famous brand Louis Vuitton to keep an eye on him.
More interesting is the appointment of his 28-year-old son Alexandre to a senior position at Tiffany. This is the latest example of how Arnault, the founder of 71-year-old LVMH and the richest man in France, places his children into the world’s largest luxury group, preparing them for eventual succession. .
It’s a progressive move, and one that is playing out across the industry, as scions from family-run homes like Prada SpA and money maker Brunello Cucinelli SpA have risen to prominence careers. Younger consumers, with a digital focus, will drive high sales over the next decade. Who better to understand than the next generation of luxury dynasties? They are bling kids themselves.
Alexandre Arnault is going to be Tiffany’s executive vice president of production and communications. He was previously CEO of Rimowa, the luggage company that acquired LVMH in 2016, which had been growing until travel caught up with the pandemic. His digital and fashion credentials include leading Rimowa’s successful collaboration with Supreme street clothing houses and Virgil Abloh’s Off-White.
Experience like this will be crucial for Tiffany. Creating excitement about the legendary brand will be crucial to attracting Millennial and Gen Z consumers, especially in Asia. Those customers also care a lot about brand values, so Tiffany’s difference on sustainability will also be important.
But it will be up to the younger Arnault to raise Tiffany’s luxury status. As a result, Louis Vuitton will have two top managers on either side of him: rising star Anthony Ledru, who will be Tiffany’s chief executive, and Michael Burke, one of Bernard Arnault’s most trusted vice-presidents, who will chair it.
A pair of his children with action officers are familiar as a pattern that Arnault has used before. For the past seven years, his daughter Delphine Arnault, who is in charge of all operations related to Louis Vuitton production, has been working with Burke, who is the CEO of Louis Vuitton.
Meanwhile, in watches, his son Frederic Arnault was recently named CEO of Tag Heuer. Earlier in his life he had worked with Swiss watch industry veteran Jean-Claude Biver, keeping an eye on Tag Heuer luxury watches.
It’s like a story outside of LVMH.
At the Kering SA competition, founder Francois Pinault has already handed over the rest to his son Francois-Henri, who has been chairman and CEO since 2005. One of the main tenancies of Pinault junior, which -now 58, has been sustainable, which Kering says has put at the heart of its strategy.
At Prada SpA, Lorenzo Bertelli, 32 – year – old son of Miuccia Prada and co – chief executive Officer Patrizio Bertelli, will lead marketing and communications as well as the group’s corporate social responsibility function. As a racing driver with little industry experience, his career two years ago caught my eye. But it has done well so far by pushing e-commerce and a sustainability agenda. Digital investment and a focus on environmentally friendly clothing (his first major campaign to unveil nylon products made from recycled ocean plastics, fishing nets and clothing industry waste) seems to be on him. benefit from Prada’s conversion efforts.
For both Prada and LVMH, a change of guard is still a far cry. If the result is family continuity – and whoever gets the job with a good credential – Bertelli is looking ahead at Prada, while the field is open at LVMH. Along with Delphine, Alexandre and Frederic, Brother Antoine Arnault is also involved in the business, with roles including responsibility for LVMH’s communications strategy and environment. Youngest son Jean is completing his studies.
When the time comes, Bernard Arnault could give everything to one of his children, or he could divide his responsibilities between them, with some sisters leading the most important. The latter approach would help prevent domestic unrest, while at the same time putting Europe’s second most valuable company in a stronger position to anticipate moves that are appear.
How Tiffany ‘s future shape will help determine not only whether Arnault was right to push ahead with the deal, but what those conditions of success will be at the eventually.
Follow more stories on it Facebook and Twitter
This story was published from a wire group group with no text changes.
