- A crypto and fashion shift is coming to LVMH, run by Bernard Arnault, as he considers which of his children will run the conglomerate that controls 75 top brands such as Louis Vuitton, TAG Heuer, and Dior.
- The succession decision could be pivotal in the crypto industry and would promote the future of blockchain technology and digital assets.
- Arnault’s sons Alexandre and Frederic have played a huge role in convincing the 74-year-old tycoon to adopt the emerging digital markets.
The second richest man on Earth, Bernard Arnault, the CEO of the LVMH conglomerate controlling 75 top brands such as Louis Vuitton, TAG Heuer, and Dior, is currently contemplating on which of his children will take over the $400 billion business empire. The 74-year-old CEO has recently raised the business retirement age to 80 years, extending his reign in the empire as he evaluates which of his children will be the next CEO.
The decision could be pivotal in the crypto industry as it may shape the future of the most potent conglomerate for years to come. The billionaire’s choice could play a huge role in promoting emerging technologies such as Blockchain technology by changing the image and strategy of the luxury brands under the conglomerate.
What could pro-crypto leadership mean for Blockchain?
Arnault’s oldest son, Alexandre – 31 years old, is currently the executive vice president of products and communications at Tiffany, while his second son, Frederic – 28 years old, is the CEO of one of the brands, TAG Heuer, both of who have been playing a huge role in encouraging the Italian billionaire to embrace blockchain technology and Non-Fungible Tokens(NFTs).
This has followed a pursuit of blockchain-related innovations through the conglomerate’s portfolio in its member companies such as Tiffany, TAG, and Dior. The billionaire oldest, Delphine Arnault, is currently the director at Louis Vuitton, while the youngest is the Louis Vuitton watch director.
The LVMH’s future leadership could play an influential role in technologies such as blockchain, artificial intelligence, and NFTs if the company were to fall under the leadership of Frederic or Alexandre, who have indicated they are more inclined to integrate these emerging technologies into their business strategies.
This leadership would see these technologies play a more central role in companies such as Hennesy, Clicquot, Dom Perignon, and Givenchy. Suppose this were to happen, LVMH would greatly influence other luxury brands and the fashion industry at large, given its influence and size. The conglomerate’s decisions would also guide the trends of larger market players, thus boosting blockchain adoption.
However, Arnault’s other three children, who have also been groomed for the family’s top business position from a young age, are also prospective heirs. Arnault is reported to gather all his children for lunch at the company headquarters in Paris every Thursday, which the offsprings view as a periodic assessment of their competence in handling business affairs in search of a suitable heir.
Arnault’s LVMH and the HBO succession put in comparison
Last year, the company restructured the conglomerate’s organizational structure to ensure that each child acquires a 20% stake in the organization, and a shareholder may only transfer their shares with a unanimous decision from the board.
The family’s mode of business and succession saga has sparked comparisons between the Arnaults and the HBO series Succession, where the children of the business tycoon duel over who will replace their father as the CEO of their vast empire.
The family has bashed down these talks and stated they are all in a cordial relationship. In an interview with the Times, the billionaire said that the best in his family would take over, but this would hopefully not be a duel soon.
Bloomberg reports that Bernard Arnault has a net worth of $170 billion, making him the second-wealthiest person in the world after Elon Musk. In 1987, Arnault merged Dior with a number of other luxury goods companies, including Louis Vuitton, Mot et Chandon, and Hennessy, to form the LVMH conglomerate.
In April 2023, LVHM remodeled the Tiffany flagship store in New York City, and shortly thereafter, LVMH became the first European company to attain a market value of $500 billion.
Even as the Arnault legacy is still in question, the decision the billionaire ends up making could potentially impact not only the fashion and luxury markets but also the blockchain market. Two of the five offspring of the billionaire’s sons have already expressed interest in upcoming technologies such as Artificial intelligence and Blockchain.
Suppose either of the two took over the conglomerate’s leadership, they would integrate these technologies into the luxury brands’ strategies, reshaping the entire cause of Blockchain by influencing crypto adoption.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.