LVMH

LVMH is thriving under CEO Bernard Arnault and his offspring. Why not let the billionaire bling kids do what they do best?

How succession at the world's largest luxury goods maker is a lesson for family-run businesses.

It is not that common in France, but two of the country's other big family-owned businesses, Hermes and Michelin, have made similar moves. In their book, Fourteen Steps to Stronger Family Governance, they said: "The greatest strength in a family business is a clear and strong sense of shared purpose among the owners and the wider family. Since 2020, 30-year old Alexandre Arnault has been an executive vice president at the jewellery brand Tiffany. It can generate a sense of belonging, worth and shared resolve that non-family businesses are unlikely to be able to generate among their owners. However, Bernard Arnault could opt to carry on for a few years. This is a competitive advantage that family businesses should try to maximise." The Missoni family still own the Italian knitwear brand of the same name that was set up by Ottavio Missoni in the late 1950s. But feuds and infighting can destroy family businesses. LVMH has a huge pool of talent. Thomas Chauvet, luxury analyst at Citi, told The National: "Succession planning is very important at LVMH. Indeed, LVMH has about 75 brands in its stable, more than 5,500 shops and more than 175,000 employees worldwide. Families can fall out, split or end up with internal feuds worthy of a Netflix mini-series.

Management of Tiffany & Co. has been transferred to the watches and jewellery department of French luxury conglomerate Louis Vuitton Moët Hennessy (LVMH).

LVMH is expected to publish full-year fiscal results for 2022 within the next month. [Tiffany & Co. “The inclusion of Tiffany in the watches and jewellery division is a natural step following the company’s successful integration within the LVMH group,” Arnault said. “Succession planning in strategic roles has been instrumental to the success of LVMH’s key brands over the past 20 years, hence today’s moves are significant,” he said. “Stéphane Bianchi’s leadership skills, his understanding of products and markets, and his organisational acumen have enabled the maisons [brands] in the division to achieve remarkable results under his management.” in early 2021 in a $US15.8 billion agreement and in the two years following the finalisation of the deal an integration period has been undertaken.