Frédéric Arnault, the son of Bernard Arnault, one of the world's wealthiest individuals and the driving force behind LVMH, has recently been appointed as the chief executive of the company's watches unit. This strategic move within the luxury empire has ignited discussions about potential succession plans and the future leadership of the group.
The 29-year-old Frédéric will be overseeing esteemed brands such as TAG Heuer, Hublot, and Zenith. His new role signifies a step towards working more closely with his father. "I will still be very committed to watches, but I will be working more closely with him on strategic projects," Frédéric stated in an interview. His promotion is seen as a possible indicator of who might eventually take over the reins of the French luxury conglomerate.
Frédéric joined TAG Heuer in 2017 and ascended to the CEO position in 2020 with a mission to elevate the brand to a luxury price point. During his tenure, he has initiated significant changes, including the introduction of connected watches with a sports focus and the innovative use of laboratory-created diamonds in some of the brand's most luxurious watches.
Bernard Arnault's children have been strategically placed in various sectors within LVMH, learning the ropes under the mentorship of senior executives. However, top executives have stressed that a family successor is not a given. Despite this, the recent reshuffling suggests that the family is tightening its grip on the empire.
The watches and jewelry division, although not the largest contributor to LVMH's impressive €79bn revenue in 2022, is becoming increasingly vital, especially after the acquisition of Tiffany in 2021. This sector experienced a 5% growth in sales to €7.9bn in the first nine months of the previous year.
As the luxury market faces an uncertain economic outlook, LVMH has made strategic appointments to ensure continued growth and innovation. Julien Tornare will replace Frédéric at TAG Heuer, and Benoit de Clerck, a former Richemont executive, will take the helm at Zenith. Longtime Hublot CEO Ricardo Guadalupe, along with Tornare and de Clerck, will report directly to Frédéric Arnault.
The Arnault family's active involvement in the company's operations is evident. Antoine Arnault recently negotiated a high-profile deal to sponsor the Paris Olympic Games and heads the family's holding company, while Delphine Arnault commands LVMH's second-largest fashion label, Christian Dior.
While Bernard Arnault has not indicated any plans to retire soon, the recent promotions and strategic shifts within LVMH signal a forward-thinking approach to leadership transition and the potential shaping of the company's future. As Frédéric Arnault steps into his new role, the industry watches closely to see how this young leader will influence the trajectory of LVMH's prestigious watch brands.
