LVMH Chairman and CEO Bernard Arnault came to Manila on an unannounced visit last week. He went to the Louis Vuitton stores in Solaire Resorts Hotel and in Greenbelt Mall, as well as the Bulgari stores also in Solaire Resorts Hotel and in Greenbelt Mall. Louis Vuitton and Bulgari are part of the French multinational luxury goods conglomerate.
Official visits of Bernard Arnault are normally preceded by extensive, advance preparation. The leading tastemaker is known to walk into the retail stores of LVMH to get a first hand look and feel of the company’s frontlines. Chairman of LVMH Fashion Group Sidney Toledano, once described Mr. Arnault in an interview with Forbes Magazine “like a helicopter.” Mr. Toledano, who helmed Christian Dior Couture for 20 years said, “He has a very big picture, but he can also go on the floor and see a product.”
Richest Man in Fashion
Speculations on the visit of Bernard Arnault ranged from the possibility that he was contemplating opening a new Louis Vuitton store to the prospect of buying an island resort. The LVMH group owns the Bulgari Hotels and Resorts luxury hospitality collection. An organization insider, who received word of his presence in the country while away from the city, said that economic climate of the Philippines certainly merited consideration for more investments. Bernard Arnault’s astuteness for business is widely known.
The world’s richest man in fashion, who dislodged Amancio Ortega of Inditex, the retailer of Zara clothing and accessories, is acknowledged as the force who invigorated Louis Vuitton to become the leading luxury maison with 70 distinguished houses managing prestige brands.
Educated in the Roubaix lycée and the Faidherbe lyèe in Lille, he completed his academic studies as an engineering graduate of the École Polytechnique in Palaiseau. Bernard Arnault began his career in Ferret-Savinel, his father’s civil engineering company. It was on his persuasion that the construction division of Ferret-Savinel was liquidated and a new company Férinel was incorporated, specializing in holiday accommodations. A few years after, he acquired companies servicing the luxury market including Christian Dior, Moët Hennessy and Louis Vuitton.
Strategy for Success
Bernard Arnault’s strategy for developing the world’s leading luxury products has made sluggish enterprises financially viable, working with what he refers to as a team of inspired managers. Decentralization allows the management group of the different LVMH companies to operate independently, with each of the managers running the business as if they owned the company. Still, he remains in touch and involved, with no indication of slowing down.
Bernard Arnault dropped into the Solaire Resort hotels and Greenbelt stores accompanied by two bodyguards. He did not stay very long and did not say very much. The LVMH chairman and CEO is known to keep a low profile. There were unconfirmed reports that he left Manila for a private resort southwest of Luzon and stayed for almost a week. He was on a plane out of the Philippines two weeks before the launch of the 2018 Men’s Fall Winter Pre-collection at the Greenbelt 4 store.
