LVMH Initiative To Change, Management To Open A Major Reorganization

In the global luxury market, the industry giants

In recent years, its management has launched a series of major reorganization.

This has also become the highest level of personnel changes in the industry in recent years.

According to the world clothing shoes and hats net, in November 8th, LVMH Group officially announced that Sidney Toledano, who was at the helm of Christian Dior Couture for 20 years, will resign from its original position and turn to LVMH.

President and CEO of Fashion Group.

Fashion group consists of eight sub groups.

Composition includes C e line, Givenchy, Loewe, Emilio Pucci, Kenzo, Marc Jacobs, etc.

Pierre-Yves Roussel, President of the original fashion group, will be pferred to the LVMH group and CEO Bernard Arnault special advisor.

Meanwhile, the replacement of Sidney Toledano as the new CEO of Dior company will be Pietro Beccari, the current Fendi brand CEO.

Pietro Beccari has beautiful curriculum vitae, and has successfully led Fendi to become the third largest brand in LVMH fashion and leather goods department, which is second only to LV and Dior.

According to the plan, the high level adjustment will come into force in January 2018.

None of the most concerned is the change in the Dior family leaders. While the LVMH group issued a statement, Bernard Arnault also publicly stated that the appointment of Pietro Beccari marks the "new era" of the Dior brand.

In fact, in April of this year, LVMH Group acquired the remaining shareholding of Christian Dior group, its main business is Sidney Toledano's fashion line.

Previously, Dior's fashion business has always belonged to Christian Dior group, while beauty makeup and cosmetics belong to LVMH group. Dior brand has finally been unified under LVMH.

Now, after combing its brand line, LVMH redeployed its troops.

High level power change

Whether the 66 year old Sidney Toledano or the 50 year old Pietro Beccari, the two CEO has injected new vitality into the two brands of Dior and Fendi respectively.

Sidney Toledano joined Dior group as director of leather products in 1994, and was promoted to Christian Dior Couture president in 1998.

From the overall performance, in his 20 years of service, Dior has opened nearly 200 new stores around the world, and its revenue has increased by ten times. In terms of products, its Lady Dior handbag is still a popular "IT" package. When the designer is in a crisis, Sidney Toledano stays calm and leads Dior to find new design talents and break through the original style.

It is undeniable that Sidney Toledano is the behind the scenes commander of Christian Dior Couture in all parts of the world.

Bernard Arnault commented: "in the past 25 years, he has developed the Christian Dior Couture special fashion house through a high quality designer team, and has enhanced its elegance and modernity."

Many people were surprised at the sudden departure of Sidney Toledano.

But he himself accepted it and was excited about the new challenges.

According to the New York Times report, Sidney Toledano said that when Bernard Arnault proposed to pfer the topic, "I haven't finished yet."

According to Sidney Toledano, "now is a good time to make changes."

He said, "I've never been tired of Dior, but now is the time to find a new direction for it.

I have great confidence in the luxury market - I don't need to look at the market analysis of those consulting companies, and I think we can still occupy more market share.

In an interview with Business of Fashion, Sidney Toledano said frankly, "most of the brands owned by the group have great potential.

Bernard Arnault wants me to make adjustments. I have no hesitation, because I think this is good for LVMH.

For me, this is an exciting new experience, and I think Pietro Beccari has done a good job. "

At the other end of the power pfer bar, Pietro Beccari has attracted much attention.

After five years of hard work, Pietro Beccari led Fendi to revival and successfully entered the 1 billion dollar club.

Whether offline stores, e-commerce sites or The Inn Boutique, the brand has been upgraded in all directions.

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The Italy CEO has pformed Italy brand Fendi into one of the fastest growing brands in the LVMH group, and Fendi has pformed from fur brand into a luxury brand of the whole category.

VOGUE concluded in the report that the focus of Pietro Beccari is mainly on three aspects: one is to expand the clothing category; the other is to introduce the classic Fendi Baguette bag into a variety of special editions, and the third is to promote brand publicity with the help of hot shops and hot spots.

Pietro Beccari also invested in a creative team to help brands active in social media and e-commerce.

In addition, he added a lot of Italy elements to the brand to enhance her sense of history and culture, including Palazzo della Civilta Italiana, which moved headquarters to Italy, and a cultural restoration project to protect Rome buildings.

In the digital age, Pietro Beccari, who is proficient in brand building and dissemination, is perhaps the urgent leader of LVMH group.

New era of fashion empire

Judging from the current adjustment, on the one hand, LVMH group is making every effort to build Dior brand. It is foreseeable that "unified" Dior will become a stronger cash cow. On the other hand, in the volatile luxury market, LVMH group also hopes that its small brands will gain more market share.

Since last year, Dior has carried out a series of personnel changes.

Last July, Dior hired a new creative director, Maria Grazia Chiuri.

Subsequently, Dior set up a new position for women's clothing department. The former L'OREAL Group Executive Damien Bertrand became the general manager of Dior dress.

As the first luxury brand acquired by Bernard Arnault, Dior is a special presence for LVMH.

This year, the LVMH group spent 6 billion 500 million euros on the Dior fashion department's revenue, making Dior the second largest brand in the group fashion department.

How to make this 70th anniversary long brand go up is the challenge for Pietro Beccari.

The other side, Sidney Toledano, is also shouldering the heavy burden.

According to the world clothing and shoe net, Sidney Toledano said he hopes to make LVMH's relatively small brand a key role in the next five years and enhance the attractiveness of products.

"I want to see more C e line handbags and Loewe dresses on the street.

What I'm looking forward to is not just selling at a time, but getting loyal customers and making the brand flourishing.

According to Pierre-Yves Roussel, "we need large brands, we are very satisfied with the success of these brands, but I also believe that there are more needs besides those big brands."

In an interview with Business of Fashion, Pierre-Yves Roussel remarked: "we now have more profits in C e line and Givenchy than in sales 10 years ago.

This is not the problem of putting money into it, but we have established an organization that can cultivate small brands. "

Next, Sidney Toledano will continue to lead the organization forward.

The recent good news is that the luxury market is showing signs of recovery.

From the recent earnings report, LVMH group's sales in the third quarter of 2017 increased by 13.6% to 10 billion 380 million euros, the sales in the first three quarters increased 14% to 30 billion 100 million euros, while the sales in the first three quarters of the group rose 27.2% to 11 billion 221 million euros, of which Gucci revenue grew by 42.8%, and its performance was brilliant. In 2017, the revenue of Hermes in the first half of 2017 rose to 2 billion 440 million euros, and the profit growth rose to euro.

Through deep marketing of electric business channels and expanding the marketing strategy of young market, luxury brands have increased their income globally through their respective innovations.

However, fashion brands are still facing tremendous pressure. The rise of niche brands, homogenization problems and changes in the consumption habits of young groups bring innovation pressure to the company.

How to further reform and revival in Bernard Arnault's "new era" is a test for LVMH group.

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