When the world’s wealthiest individuals come to mind, one often thinks of Bezos, the founder of Amazon, who has consistently topped the global rich list with his online shopping platform and cloud computing ventures. However, it is surprising to see a traditional leader in the luxury industry break the tech monopoly and claim the title of the world’s richest man. Bernard Arnault, the 70-year-old chairman of France’s LVMH group, has emerged as the wealthiest person globally with a net worth of $116.5 billion.
According to reports from French media, LVMH’s share price experienced a 0.7% increase, adding $1.9 billion to Arnault’s net worth. In contrast, Amazon’s share price declined by 0.7%, reducing Bezos’s fortune by $760 million to $115.6 billion, placing him just $900 million behind Arnault. LVMH Group, employing around 56,000 people, possesses an impressive portfolio of 75 luxury brands, including Hennessy, Louis Vuitton, Dior, Givenchy, and Fendi. The group’s diverse business activities encompass wine, fashion, leather goods, perfume, cosmetics, watches, jewelry, and boutique retail. As the largest individual shareholder with a 47.5% stake in the group, Arnault serves as LVMH’s president.
Arnault is renowned for his fierce competitiveness in the business world. Born into a middle-class business family in northern France in 1949, he joined the family business in 1971 and successfully convinced his father to sell their decades-old construction business and venture into real estate. Six years later, he assumed control of his father’s business and became the chairman of the board.
Since then, Arnault has embarked on a path of wealth expansion. In 1984, he acquired the fashion company bearing the name of renowned designer Dior. Three years later, Arnault achieved a significant milestone by successfully acquiring the LVMH group, which housed two prestigious brands, Hennessy and Louis Vuitton, at a remarkably low price.
However, not all of Arnault’s acquisitions have been smooth sailing. He faced an unexpected setback during his attempted purchase of Gucci. When LVMH launched the acquisition, Gucci thwarted their efforts by diluting LVMH’s shares to 20% through capital expansion and transferring 43% of the company’s shares to PPR Group, the world’s third-largest luxury and retail giant and LVMH’s most formidable competitor. After a protracted legal battle, the two companies finally reached an agreement whereby LVMH transferred its Gucci shares to PPR. Despite the unsuccessful acquisition, Arnault still garnered substantial profits from the deal.
Thus, it is through his shrewdness and prowess as the godfather of luxury that Bernard Arnault has ascended to the pinnacle of the world’s wealthiest individuals.