He is known as a French billionaire, business shark, and collector of world works of art. However, his story is not about the phenomenal success of a man from the bottom up. It seems that the fate of a successful entrepreneur was predetermined: he followed in the footsteps of his father and surpassed him thanks to his amazing business acumen. Today Bernard Arnault is the richest man in France and one of the richest people in the world.
First steps in business
March 5, 1949, Bernard Arnault was born in the French city of Roubaix in the family of an entrepreneur. The young man received a good upbringing and studied to play the piano. According to the businessman, later this skill came in handy for him when he courted his second wife, a professional pianist.
He graduated with honors from a higher educational institution and received an engineering degree. But in further work, the document was not required – Arno became a partner in the family construction company. Endowed with a sharp business sense, Bernard convinced his father to focus on real estate and achieved significant success in this area. In 1978, he took over the management of all affairs.
He soon sold his father’s company and moved to the United States. There, the future billionaire took up the development of condominiums in the popular resort area of Florida. As an astute businessman, he has chosen a very profitable field of investment indeed. As a result, this direction has become one of the branches of the Arno family business for the sale of real estate.
In America, Bernard recognized the importance of brand value in the development of a company. When he first visited this country, the taxi driver he hired identified France with the name, Christian Dior. This incident helped Arnault to form a future business strategy: it was during this period that he developed an interest in luxury goods, which became decisive in choosing a further course.
In addition, here Bernard studied American business methods, focusing on aggressive ways of capturing the market. In 1983 he returned to his native France, ready for action.
The takeover of French luxury brands
At the time of his return, Arno had his own $ 15 million, which he planned to invest in a new direction of the business. Together with Antoine Bernheim, managing partner of the French bank Lazard Frères and Co., he managed to find $ 80 million to take over the bankrupt textile company that owned the Christian Dior fashion house. Later, he sold almost all the assets acquired as part of this transaction, leaving only the most prestigious brands.
In 1987, Bernard received an offer to invest in LVMH, and in 1989 became its majority shareholder. Subsequently, the concern absorbed other fashion brands: Christian Lacroix, Givenchy, Kenzo, Loewe, Céline, Berluti, DFS group, and Sephora. American business lessons were not in vain: Arno managed to collect under his management many brands specializing in the sale of luxury goods. He acted decisively and ruthlessly, while carefully thinking over his every step.
In the fall of 2019, LVMH signed a $ 16.2 billion deal to acquire the American jewelry house Tiffany & Co, which is considered the largest luxury brand acquisition in history.
Today the group of companies belonging to the Arno family is renowned for its high-quality products. The oldest brand in LVMH is the wine producer Chateau d’Yquem, founded in 1593. The main feature of luxury drinks is their durability.
After taking over the brands, Bernard fired several managers and replaced them with new talent from the fashion world to bring the acquired companies back to life. He is described as a tough leader known for his tendency to get rid of employees who do not live up to his expectations.
The entrepreneur’s ambitious plans have come true in full: Arno is the permanent chairman and CEO of the concern, which includes more than 70 world-famous premium brands. In Europe, he is known as the man who was able to revive French fashion and revive interest in it.
