Louis Vuitton changes coach for the first time in ten years, “child of prince” takes charge of Dior

LVMH, the world’s largest luxury goods group and the company with the highest valuation in Europe, announced a management reshuffle, which was called one of the most significant management adjustments in years by the media. On Wednesday, January 11 local time, LVMH announced that Pietro Beccari, chairman and CEO of its brand Dior, will serve as chairman and CEO of Louis Vuitton, the only daughter of LVMH chairman and CEO Bernard Arnault, and executive vice president of Louis Vuitton. Delphine Arnault will succeed Beccari to lead Dior, effective from February 1. LVMH said that chairman and CEO Michael Burke, who has been in charge of Louis Vuitton for ten years, will be in charge of the new job, and LVMH leader Bernard Arnault will be his immediate superior. | Related Reading (Wall Street Insights)

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At the beginning of the birth of luxury goods, most of them served the princes and nobles, and they were generally family-run handicraft workshops. The craftsmen are exquisite in craftsmanship, pay attention to inheriting the father’s business, and pass it down from generation to generation, gradually becoming a century-old brand. The origin and core brand of the LVMH Group is Louis Vuitton, also known as LV, which was founded in 1854. Its main brands are Louis Vuitton and Moet champagne. In 1987, the two brands merged. The group’s name LVMH is composed of the initials of the two brand names. As a world-renowned luxury brand, Louis Vuitton has always been concerned about management changes. Recently, the head of the company ushered in a successor, and the stock rose sharply, indicating that people are optimistic about the brand.

Louis Vuitton Group has regulations, the upper limit of the group president’s age is 75 years old. In April last year, LVMH shareholders passed a resolution to extend the age limit for the CEO position from 75 to 80, so that 73-year-old Bernard Arnault can continue to lead LVMH. Under the helm of Bernard Arnault, it is also natural for Louis Vuitton and Dior to change heads.

Insiders of the Louis Vuitton Group have long believed that Beccali may be Burke’s successor. Since Beccali joined Dior in 2018, the brand’s total sales last year roughly quadrupled to about 9 billion euros. Now he is well-deserved to succeed Burke. Bernard Arnault arranged for his daughter Delphine to take over as CEO of Dior, which further strengthened the family control of this luxury empire. Bernard Arnault’s five children all work in the LVMH Group and have been cultivated and reused.

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