Business Strategy E-Magazine August 2021

Bernard Arnault
More than anything else, Bernard
Arnault’s story embraces
contradictions: He is one of the
most successful businessmen on
the planet, but he has given away
billions to charity. At the same
time, he maintains a unique lifestyle:
he owns a $24 million yacht,
which collects dust on the Mediterranean
every year; he flies first
class; and vacations in a helicopter.
At the same time, he goes shirtless
on the runway in Paris and shows
off his toned body on the catwalk
at Versace fashion shows.
The biography of Bernard Arnault
is similar to that of the legendary
Louis XIV of France and many
other wealthy and powerful men
of his time. This is because, like
all men of his class, Bernard was
a ruthless businessman that lived
his life in the pursuit of power.
Many details and facts of this story
will be fascinating, and several
will find them disturbing.
Bernard Arnault’s Childhood
and study life
Bernard Arnault was born in Paris
in 1885, in one of the most impoverished
areas of the city, right
outside the famous Trocadero. He
was one of seven children of Edmond
Arnault, a manufacturer.
The family lived on land that had
belonged to his family since the
18th century. It was a quiet, simple
life. His father worked long hours,
and all seven of the children had to
help out, with Bernard working in
the factory after school. They lived
in a small, two-room flat above the
family shop.
Bernard’s early childhood was
difficult. He suffered from rickets
and had difficulties learning how
to walk. He had a complicated relationship
with his father. The
premature death of his father,
followed by the loss of his mother
when he was still a child, made
Bernard introverted and reserved.
His mother’s loss and early childhood
in a poor rural environment
shaped him into a cynic. Soon after
his father’s death, his uncle
paid for his training in the textile
industry. Arnault entered the textile
trade in 1906 and was promoted
several times. In 1919 he married
Mlle. Dollfus, a modest employee
in the production department of
an engineering firm.
Arnault is a graduate of the Ecole
Nationale d’Art Moderne, an institution
famous for creating
avant-garde French clothing at
the end of the twentieth century.
He came to France at the age of
eleven. He spent his entire working
life in Paris, going to school at
the Ecole Nationale Supérieur des
Arts and Crafts, one of the world’s
oldest and most prestigious fashion
design programs.
From Rag to the Riches
Bernard Arnault is a French business
executive and billionaire. He
is the Chairman and Chief Executive
Officer of LVMH Moet Hennessy
Louis Vuitton SE, the world’s
largest luxury goods company.
He also heads Bernard Arnault
and family investment company,
Groupe Arnault. The Arnault’s
own and operate more than 300
stores, 100 percent owned and operated
by third-party franchisees.
Over the past three decades,
LVMH’s revenues have risen sevenfold,
and the company has dominated
the high-end consumer
goods market. It sells everything
from fragrances to handbags,
wines, and watches, with sales of
more than $48 billion. LVMH accounts
for nearly half of France’s
export revenue, while the bulk of
its clients are wealthy international
consumers.
Today, LVMH owns multiple million-dollar
works of art, including
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Issue 14, August 2021 | CONTENTS 7