How Bernard Arnault And LVMH Are Dominating The 2024 Paris Olympics

The Cashmere Wolf strikes again! Bernard Arnault’s strategic takeover this time? The 2024 Paris Olympics! In a deal worth about $163 million, the chairman and chief executive of LVMH Moët Hennessy Louis Vuitton and the world’s third richest man this week, is ensuring that when you reflect on the Olympics’ symbolism of international cooperation, harmony, iconic moments, and heroes, you also think about celebrating with a snifter of Hennessy or perhaps a flute of Moët & Chandon, the official champagne of the Olympics. The glassware should be crafted by LVMH-owned Tiffany & Co., mais bien sûr!

Luxury’s Grand Entrance into the Olympics with LVMH’s Takeover

The Olympic torch, along with the Olympic medals created by LVMH’s jewelry maison Chaumet, will travel securely in, respectively, custom Louis Vuitton Torches Trunks and Medals Trunks. LVMH’s Samaritaine department store, Louis Vuitton’s headquarters, and LVMH-owned Cheval Blanc hotel will all somehow be making appearances during Opening Ceremony, per reported negotiations, as will LVMH’s beauty retailer, Sephora.

LVMH’s Dior is sponsoring gymnast Mélanie de Jesus dos Santos. Other LVMH properties will either support other athletes or be represented by their employees — pardon, their Artisans of All Victories — who will participate in the Marathon Pour Tous, the first amateur marathon race in Olympic history. Should these athletes inspire you to head back to the gym, perhaps LVMH’s Berluti – the official outfitter of the French Olympic team – can interest you in lacing up in their Skyrunning Leather and Nylon sneakers?

2024 represents the first time luxury has taken such a massive interest in the Olympics. High ticket brands were previously content with only supporting the sports interest of the ultra-rich, like tennis and polo matches or Formula One and regatta racing. Yet as the jet-setting crowd begins to tighten the grip on their wallets per the latest underwhelming shareholder reports (except, of course, Hermès’ report, which continues to remain stellar), aspirational luxury consumers are looking more appealing with their 60% contribution to luxury sales in smaller dollar amounts, according to Boston Consulting Group. There’s no wider democratic venue for the Arnault family to begin their seductive marketing mission of “The Art of Crafting Dreams” than the Olympics.

The Arnault Family Ambition

I mention the Arnault family as it was Antoine Arnault, eldest son of Bernard, and image and environment director for LVMH, pushing his way to the front of the succession battle royale against his other four siblings by securing this, la mère of all marketing coups. But if you would have him tell it, this sponsorship, nay, creative partnership, is all for the good of France. As he told WWD:

“As I’ve said before, we do not expect any impact other than contributing at our level to the success of the Olympic and Paralympic Games. This partnership is not about promoting LVMH, but about highlighting the know-how of our brands and the powerful expression of our creativity. Naturally, I sincerely hope that what we have prepared for the athletes and spectators will live up to expectations, because our primary desire is to bring France’s creative and innovative know-how and craftsmanship to all the moments of celebration of these Games. If the French and the whole world notice and admire this heritage of ours, then we will have succeeded.”

He continues, “Hundreds of thousands, perhaps millions, of people and tourists will come to Paris for the Olympic and Paralympic Games and our stores will be there to welcome those who would like to make a purchase, even if I repeat, financial benefits have never been a goal of this partnership.”

Couldn’t have said it nicer than when his father claimed his secretive accumulation of Hermès shares was only to provide strategic and operational help to the second most valuable luxury brand in the world. Antoine is certainly a chip off the old block, as he stands on the shoulders of luxury’s undisputed G.O.A.T. I’ve promised a deep dive on Bernard Arnault to my LinkedIn followers for months now. Please consider this my opening ceremony.

Arnault's Obsessive Attention to Detail

My first introduction to the legend was nearly 20 years ago, through a French friend who once worked as a Givenchy executive. He shared stories of Arnault’s precise eye for detail during his frequent boutique visits, with employees nearly passing out holding their breaths, waiting for Arnault to find a mistake they’d inadvertently missed. Of course he always did, adding to the emotional trauma familiar to anyone who’s ever worked for an intensely demanding boss.

When I discovered a similar story told to Bloomberg by Alexandre Arnault, vice president for product and communication at Tiffany & Co., and another competitor in the succession battle royale as the younger half-brother to Antoine, a pattern began to emerge.

“He made a bunch of comments that were very, very detail-oriented,” the junior Arnault told Bloomberg reporters, Brad Stone and Angelina Rascouet. “The chairs in the store and the shoes the salespeople were wearing. Things that you wouldn’t typically notice, but once you’ve seen tens of thousands of stores over the years, I think it’s what comes to your mind immediately.”

Apparently, the sales associate was wearing Nike’s that were not a product of the Tiffany and Nike collaboration. Tsk tsk. In all fairness, the employee should have known better. After all, Arnault didn’t get appellations such as “Conquistador” and “The Terminator” by not taking every opportunity to promote his dominance. Genghis Khan would also have taken insult at such a brand betrayal, particular since the leader of the Mongol empire and the leader of LVMH both found opportunity in China long before anyone else and both expanded their empires with ruthless efficiency.

Arnault’s Place Among The Empire Builders

But I’m getting ahead of myself. There is so much to be told in the rise of Arnault, and my intention over several columns is to really look at the man to understand how he became one of history’s greatest victors, amassing the luxury industry equivalent of the scope of China with his 75 brands and counting, all under the LVMH empire. And like Alexander the Great before him, he plans to continue his territory acquisition without hesitation as he, one can imagine, sits in his war room with his generals – ah, executives – and plots how he will capture the territory now owned by Richemont Group.

Yes, our dapper Wolf has once more put on his grandmother costume to lovingly tell Johann Rupert, Richemont’s chairman who owns 51% voting rights of the company behind Cartier, Van Cleef & Arpels and fashion brand Chloé, that he understands if Rupert wants to remain independent. In fact, Arnault purred, after already buying an undisclosed stake in the company, “I find that very good. If he wants support to maintain his independence, I’ll be there.”

In the many wonders of the luxury business, Arnault stands as a colossus, casting a long shadow over those content in their independence, while, like Napolean, he plans his next siege to expand his opulence empire as a man whose ambition knows no bounds. The strategic brilliance in his relentless pursuit of luxury has fueled LVMH’s market cap to $360B, down about $40B last quarter due to current market conditions. But still, shareholders must be incredibly happy with the value he’s created.

From his early days in his father’s company to the bold acquisitions that built his kingdom, Arnault’s journey is a study in ambition, strategy and ruthlessness. My upcoming columns will rewind the clock to explore his beginnings, initial forays into the business world, and the key moments that set him on the path to becoming Le Conquérant of luxury.

Which Of The Five?

As for his succession plans, which have become as riveting as the Emmy, Screen Actors Guild and Golden Globe awards-winning HBO drama of the same name? Surely, rebranding the 3,000-year-old Olympics in LVMH magnificence should have identified a clear winner?

“As for the future, I have five members of the family working in the group. Let’s see if one of them has the capacity to take over,” he’s cheerfully told Bloomberg.

Ah, Monsieur Arnault, you are certainly entertaining.

Stay tuned for the next installment, where we dive into the early years of Bernard Arnault and discover how the seeds of his empire were sown.