Do you think this elderly man in the photo looks more like a university professor or an official from some Eurocommission measuring cucumber curvature?
In fact, this is Bernard Arnault, the richest man on Earth today according to Forbes. He has surpassed Elon Musk and Jeff Bezos. His net worth is estimated at X billion dollars. Competitors call him the “wolf in a cashmere coat.” In the 1980s, this “predator” burst into the world of high fashion and luxury and, within a few years, built a true luxury empire. He is definitely someone to learn from, both in terms of his wolf-like tenacity and his business acumen. Let’s get to know him better and see how he became such a success. He could have become a hero in wolf-themed VK communities, but instead, he became the richest man on Earth. The secret to his wealth was suggested by a taxi driver. He is ruthless and knows no mercy but creates the most beautiful and expensive things in the world. Everything you dream of buying is created by him — our hero Bernard Arnault, the king of fashion and luxury.
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Imagine You Are Very Rich
Imagine you are very, very rich. Nice, isn’t it? Today, you have an important event — a party for the birthday of a friend’s daughter. You need to look the part. After some thought, you decide that for the occasion, items from the latest Christian Dior collection, a Louis Vuitton bag, and Berluti shoes — a few unremarkable but insanely expensive accessories — will be perfect. Bulgari or Hublot watches, a splash of some fine wine — and the look is complete. You can head out. Though it’s still early, you can leisurely enjoy a glass of Champagne or 50 grams of collectible Hennessy. Wait, what does our hero Arnault have to do with this? It’s simple: all the luxury items I mentioned, everything you wore and drank, were created at his enterprises. The words “Arnault” and “luxury” are practically synonymous today. And any social event can be considered a showcase of the latest achievements from his factories and ateliers.
How Did This Come to Be?
How did this come to be? It all began in France, in the town of Roubaix. You might think that, traditionally, we’ll start by saying that the future billionaire grew up under a bridge, was born to a family of tramps, and to survive, caught frogs in the Seine’s tributaries. But no. The family into which little Bernard was born in 1949 was quite wealthy. His father was in construction and owned a large company. His father’s money allowed Bernard to graduate from the Polytechnic School — one of the most prestigious higher education institutions in France. However, after obtaining an engineering degree, Bernard did not work in his profession. Instead, the young man became his father’s partner, and four years later, he went to the USA. You might ask: wait, how did his father allow that? He didn’t know. The loving son presented him with the fact when the deal was already made.
An Unexpected Encounter and Advice
In America, Arnault unexpectedly meets a person who gives him advice that changes his life forever. And no, it wasn’t a business coach or some grey-haired guru from the Himalayas, but a simple taxi driver. When asked if he knew French President Georges Pompidou, the taxi driver said “no” and added that the only French person he knew was Rihanna. Before that, Arnault was considering getting into computers, but now he understands that Americans believe strength is in innovation, while strength is in tradition. “I really like Apple, but can you say that in 20 years people will still be using iPhones? Maybe not. But people will still be drinking Dom Pérignon in 20 years,” he would later say. However, at the time, Arnault was buying champagne not from factories, but by the bottle, and was just learning to do business the American way. American business methods are quite different from those in the Old World. Where Europeans engage in lengthy negotiations, the shrewd prefer assertiveness and push. Bernard absorbs this transatlantic wisdom and also gets involved in real estate in Florida. By the way, it is rumored that his business partner at that time was none other than future US President Donald Trump. Having accumulated knowledge and $15 million, the future luxury king returns to France.
Saving a Textile Giant
At this time, the country is in turmoil. The government is seeking a way to save the textile company “Boussac” and preserve the jobs of its employees. Just to clarify: “Boussac” is not some factory in an unknown village. It is the company that owns the Christian Dior brand — the very one known even to the taxi driver in New York. So, Arnault declares that he is ready to be the noble knight who will save the company. $15 million is not enough to buy “Boussac,” but the entrepreneur finds an investor who gives him another $88 million. The deal is made, but the government and workers celebrate too soon. Arnault needed only Christian Dior, and everything else was useless ballast. He sells off most of the assets, laying off 9,000 workers. Everyone is horrified, and then Arnault earns the lifelong nickname “wolf in a cashmere coat.” But no one can do anything now. Dior goes to Arnault and becomes the first cornerstone of his future empire.
The Next Target: Louis Vuitton Moët Hennessy
A new quarry looms on the horizon. The newly formed conglomerate Louis Vuitton Moët Hennessy faces disagreements so severe that the highly profitable company could have collapsed. The holding was made up of two parts: one dealing with fashion (Louis Vuitton) and the other with drinks (Moët Hennessy). Each half of the company considered itself superior and regarded the other as a hack. During the merger, the financial share of the cognac-champagne production turned out to be significantly higher, and the position of president went to Alain Chevalier from Moët Hennessy. Henri Rac, who was married to Louis Vuitton’s great-granddaughter, only became vice-president and felt overlooked. “What’s this about? Louis Vuitton made trunks for the wife of the French Emperor Napoleon III, and now some bootlegger becomes the head of the merged company!” he grumbled. However, assets are stubborn things, and defeating Chevalier seemed impossible for Rac. But then the suspiciously noble knight — Bernard Arnault — appeared again.
Arnault’s Strategic Intervention
Arnault offered his help in managing the company. By that time, the partners had fallen out, so the mediator was quite welcome. The representative of Louis Vuitton — Rac — was most pleased. It turned out that the new manager acknowledged that the high art of making bags could not be compared to the bottling of some sort of rotgut. The nouveau-riche triumphed over the hated alcohol producer, who was ousted from the company. But soon after, Arnault becomes the new president, and Chevalier resumes his role at Moët Hennessy. Arnault also acquires 10% in both companies. An important point: when investors realized that the board was no longer in place, the new president and victor gained full control over the company. Then mergers and acquisitions literally poured in like a horn of plenty. The fashion shoe factory Berluti is acquired, a jewel on the global fashion map. First came private clothing collections, then numerous new enterprises. Bernard then becomes a shareholder, and later the owner of the premium brand Loewe, takes steps to acquire Celine, and then buys it. Arnault did not stop and continued to acquire boutiques and fashion houses from the world of immense luxury.
Creating a Luxury Empire
This is only part of the grand strategy: to make it so that every item can only be bought from him. So, if you want to indulge in luxury, go to a cool restaurant, buy a fashionable bag, or arrange a special holiday for your family, you have to go through him. Otherwise — it’s pointless. The transparency and clarity of the approach have made it so that even careless buyers of all these brands now understand who is behind them. Few know that the purchase of one brand can entail the acquisition of several new companies. It was the same in this case. Each successful acquisition attracts other businessmen and creators to Arnault. For them, it’s a chance to enter the world of fashion and style, and for Arnault — new prospects. As a result, an ideal luxury business matrix is created. To put it simply: if you want to sip a glass of fine wine and look like a wealthy person, buy only from him. Otherwise, consider your money wasted.
Arnault’s Vision for Luxury
Today, it looks like a kind of pyramid: everything you buy is either created in his factories or through his networks. This approach has allowed Arnault to form essentially a single team under one master. He is not afraid of crises because there are no boundaries, and what happens in the world of fashion depends only on him. The idea was built on the notion that he controls everything: who wears what, what to pair with what, and which new trends will be set. To achieve this, it is enough to place mannequins in the right spots and give the right instructions to all fashion brand owners. Reading this, one might think that all things in the world exist solely to be bought.
The True Essence of Arnault’s Success
Of course, it’s not quite like that. It’s unlikely that all fashion brands exist solely to be sold by Arnault. For instance, clothing sellers such as LVMH have only the best craftsmen on their team. They offer clothes for their target audience and designs that meet every customer’s needs. And all this is thanks to Arnault’s careful oversight, ensuring that all buyers remain satisfied. Behind this is an entire army of designers and managers who develop trends to meet the demands of the most discerning clients.
Arnault’s Legacy
So, Arnault has remained true to the principles he laid out from the beginning. He does not sell items; he creates culture and style. His work and his companies speak for themselves, and he doesn’t need to flaunt luxury through advertising. Each new opening, new brand, or new collection is already known in advance. This is helped by the traditions he has preserved. Each item released under his brands has become a true work of art and a source of pride for its owner. He has managed not only to create a massive empire but also to elevate it to world-class elite status. And even if you don’t buy a single item, you’ll know that you’re looking at works of art.
Summary
Arnault is power and strength, and not everyone can achieve that. He has succeeded not just in creating factories, but in creating a unique culture and style that attracts the most demanding clients. His name has become synonymous with luxury and sophistication, allowing him to remain one of the richest people in the world. How did he achieve this? Probably, the secret lies in his ability to combine ancient traditions with modern trends, as well as in his persistence and pursuit of perfection.
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