The Reshuffle at LVMH

http://wwd.com/business-news/human-resources/lvmh-big-reshuffle-fendis-pietro-beccari-heading-dior-sidney-toledano-new-ceo-11044341/

LVMH, the parent company of brands such as Louis Vuitton, Marc Jacobs, and Fendi, has recently undergone one of the largest reshufflings in recent memory. In something vaguely resembling a (very expensive) game of dominoes, Pietro Beccari, former chief executive of Fendi, is going to head up Dior Couture, whose CEO, Sidney Toledano will become chairman of the LVMH Fashion Group, taking over the role from Pierre-Yves Roussel, who will become a “special advisor” to Bernard Arnault (CEO of the LVMH company). A successor at Fendi has not been named.

The most interesting transition will probably be Beccari’s transition to Dior, having previously led Fendi, a relatively lower member of the world of couture. Toledano, the previous CEO of Dior, held the position for twenty years, so it is currently unclear whether the change will be a welcome one. Dior’s stock is currently at five year highs, so Toledano’s transition is somewhat surprising. You might be thinking, well of course becoming head of the LVMH Group is a reward, he’s going to be in charge of the entire fashion group, but that title means that Toledano will be in charge of smaller companies like Loewe and Kenzo.

At Fendi, Beccari famously left Silvia Fendi and Karl Lagerfeld in control, as opposed to shuffling new designers every five years, but discontinued fendi’s logo bags in favor of so-called cult pieces, like the fendi pom pom key chains (which sell from Fendi at $420 and up) and “Peekaboo” bags (the mini size of which retails for more than $3000). Suffice to say he’s an important at LVMH. Similarly, it seems like he plans to leave the new creative director at Dior, Maria Grazia Chiuri, in charge. Dior has famously undergone very quick transitions, likely based on the fact that each creative director designs for more than five shows a year (many companies do three).

It will be exciting to see what these new chiefs have in mind at their respective companies, but only time will tell the effects of these changes. 

 

Sources:

https://www.businessoffashion.com/articles/bof-exclusive/lvmh-announces-major-executive-reshuffle

https://www.lvmh.com/houses/fashion-leather-goods/

https://www.bloomberg.com/news/articles/2017-11-08/toledano-is-said-to-end-20-year-run-as-head-of-lvmh-s-dior

 

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