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FASHION VALUE CHAIN

A management transition is taking place at the French luxury brand Louis Vuitton Malletier, widely known as Louis Vuitton. Bernard Arnault, the company’s chairman, has changed the senior management. Currently, Pietro Beccari, who has led Dior since 2018, will succeed longtime Louis Vuitton CEO Michael Burke, and Bernard has appointed his devoted daughter Delphine Arnault to serve as Dior’s CEO.

Alongside Burke, 47-year-old Delphine Arnault has worked for Louis Vuitton for the last ten years and was previously employed by Dior for twelve years.

Burke, the longest-serving colleague of Bernard Arnault and former chairman of Tiffany Jewelry, would continue to work with the senior Arnault, the business stated in a statement without elaborating on his new position. He is regarded as one of the most important business leaders in the fashion industry. Under his direction, Louis Vuitton experienced rapid expansion, becoming the largest luxury brand in the world.

And for the uninitiated, Beccari, who formerly oversaw LVMH-owned brand Fendi, reportedly tripled revenues at Christian Dior during his tenure, bringing them to 6.6 billion euros. The breakdown of the annual sales of LVMH’s brands is not available.

Reuters quotes Beccari as saying, “Beccari pushed the label into new categories, including beach accessories like surfboards and hammocks, bringing them closer to customers by putting up temporary retail facilities in resort locales like Mykonos, Greece, and Santa Barbara, California.”

According to Reuters, the executive oversaw a significant renovation of the company’s famed Avenue Montaigne site in Paris, turning it into a large flagship with restaurants and a museum that has boosted foot traffic in the area.

According to the story, the modifications that have been made public will take effect in February and come after Antoine Arnault, Bernard Arnault’s eldest son, was recently named to lead the family’s holding business. The family’s grip on its business is becoming tighter as a result of a string of high-profile successions at major European fashion firms, such as Prada (1913.F) and Zara owner Inditex.

According to Thomas Chauvet, an analyst at Citi, “succession planning in strategic roles has been fundamental to the success of LVMH’s core brands over the past 20 years, therefore today’s changes are noteworthy.”