"Changing the boss" is also the key word in the luxury industry in 2023.
LVMH began the year by reshuffling the management of its two most important brands, Louis Vuitton and Dior.
Delphine Arnault, 47, the eldest daughter of Bernard Arnault, chairman and CEO of LVMH Group, took over as chairman and CEO of Dior. Pietro Beccari, who was replaced by Delphine, moved to chairman and CEO of Louis Vuitton, succeeding Michael Burke, 65. The retired Michael Burke is still highly valued, and WWD predicted in mid-year that he would take over from Sidney Toledano, CEO of LVMH Fashion Group.
The management transition between the two brands took a long time and lasted for a whole year, involving the switch of the two brands from senior positions to HR. This is also considered to be an important plot point in the LVMH Group's "succession war." Their father, Bernard Arnault, 74, is delaying retirement until the age of 80, but attention is focused on which of the five children will eventually take over the vast fashion empire.
On December 9, 2022, When Antoine Arnault, Delphine Arnault's brother and Bernard Arnault's 46-year-old eldest son, was appointed CEO and vice chairman of Christian Dior Holding, succeeding Sidney Toledano, Antoine was expected to be the eventual winner. Because Christian Dior Holding Company is the "money bag" of the Arnault family, it owns 41% of the equity and 56.8% of the voting rights of the LVMH Group. Delphine Arnault's appointment dispels this myth.
But in November Antoine Arnault quit Berluti as chief executive, leaving his new identity unclear. The move has raised speculation about whether he will also be a candidate for Sidney Toledano's current job, or whether he will focus more on Christian Dior Holding and LVMH's corporate image and environmental work.
Pharrell Williams, artistic director of Louis Vuitton menswear, and Pietro Beccari, Chairman and CEO of Louis Vuitton
The executive shake-up is likely to be followed by a change in creative director. Pietro Beccari immediately filled the one-year vacancy as artistic director of menswear at Louis Vuitton, appointing American musician Pharrell Williams to replace the late Virgil Abloh.
After Pharrell Williams' first collection was unveiled during Paris Men's Fashion week in June, there was a lot of talk about Louis Vuitton's womenswear artistic director Nicolas Ghesquiere's future. Pharrell Williams used female models in the men's show and invited Rihanna to promote the product, while Ghesquiere had been in the position for 10 years. However, the rumours were quelled in November when Pietro Beccari renewed Ghesquiere's contract for another five years.
Matthew M. Williams personal brand 1017 Alyx 9SM is funded by Joseph Cheng
After Delphine Arnault's appointment, it was revealed that she approached GUCCI's former creative director Alessandro Michele in July. Rumors that he will replace Maria Grazia Chiuri, artistic director of Dior women's wear, have been swirling, but the Italian designer has helped the brand quadruple its performance since she joined Dior in 2016, and LVMH is unlikely to take such a chance.
Alessandro Michele is out of competition at the end of November, and LVMH is the most plausible new owner in the rumours. According to the latest rumors, Alessandro Michele is going to work at Fendi, while Kim Jones, currently Fendi's creative director of women's wear and Dior's creative director of men's wear, is going to Givenchy. Givenchy's current creative director Matthew M. Williams will step down on January 1, 2024, while K11 owner and Hong Kong billionaire Joseph Cheng acquired a majority stake in his personal label 1017 Alyx 9SM on November 30, which will drive the brand's global expansion.
The rumors of these creative director adjustments can be seen that LVMH Group began to lay out some potential brands Givenchy and Fendi after the slowdown of Dior and Louis Vuitton.
Stephane Rinderknech, chairman and CEO of LVMH's beauty division, is a former CEO of L 'Oreal China
LVMH, on the other hand, is also frantically recruiting from the beauty field, and six of the eight executives appointed by the group in 2023 in related fields have worked at L 'Oreal Group or Estee Lauder Group. Ada Lien, Fresh's chief executive, and John Demsey of L Catterton, LVMH's private equity arm, both worked at Estee Lauder; Nathalie Elbaz, CEO of Buly 1803 Fragrances, Philippe Farnier, CEO of Travel Retail in the Beauty Division and Philippe Farnier, CEO of Dior Fragrances, Giulio Bergamaschi, CEO of Acqua di Parma, Stephane Rinderknech, chairman and CEO of LVMH's beauty division, has experience working at L 'Oreal. The remaining three positions are for the beauty sales channel: SEPHORA's Chief omnichannel and data officer, global Chief Human Resources Officer, and CEO of the beauty division's travel Retail business. It can be seen that LVMH Group began to explore the sinking market after the high luxury and weak growth.
GUCCI's creative director Alessandro Michele
Kering Group, which ranks second in the luxury industry, experienced a huge shock in 2023.
At the end of last year, Alessandro Michele, the creative director of the flagship brand GUCCI, stepped down, and Kering immediately hired Sabato De Sarno, a 40-year-old men's and women's ready-to-wear designer from Valentino to replace him.
Francesca Bellettini, CEO of Yves Saint Laurent, is also Deputy CEO of Kering Group, responsible for brand development
Capital market concerns about Kering's poor performance prompted a management shake-up, appointing Francesca Bellettini, chief executive of Yves Saint Laurent, who had led the company's rapid growth over the past few years, as deputy chief executive officer for brand development, In the same position, Jean-Marc Duplaix, head of finance, is responsible for the Group's operations and finance.
Kering also created a beauty division, appointing Raffaella Cornaggia, a 14-year Estee Lauder executive, as its head. She also served as Vice President of Global Cosmetics Marketing at CHANEL from 2005 to 2008. Kering is banking on the beauty division to become a new growth engine in the medium to long term.
There have also been a series of changes within the core GUCCI brand.
The departure in April of Robert Triefus, CEO of Gucci Vault and Metaverse Ventures and senior executive vice president of brand enterprise and brand strategy, marks the end of Kering's investment in the Metaverse space over the past few years.
Susan Chokachi, Executive Vice President, Chief Brand and Customer Officer at GUCCI, leads the restructuring brand and customer engagement team. Alessio Vannetti, who served as GUCCI's communications director from 2015 to 2019, returns to GUCCI to share some of Susan Chokachi's responsibilities as chief brand officer. Benjamin Cercio has been promoted to Senior Vice President of Global Communications, with direct responsibility for the Gucci Archive and Gucci Garden projects, strengthening the brand's connection with art and culture. Cedric Murac joins as Senior Vice President of Global Brand Image and Content Studio, working closely with the teams in the art purchasing and photography studio, narrative and editorial Content, and Corporate Identity departments. Massimo Rigucci, the current CEO of GUCCI's leather goods, footwear, jewelry and industrial business, will leave the company in January 2024, and it is rumored that Massimo Vian, Prada's industrial director, will take over this role to lead GUCCI's Artlab factory and Novara production center.
