Elon Musk lost his title as the world's richest person to Bernard Arnault, the mastermind behind luxury brands like Louis Vuitton and Sephora.
The real-time Forbes billionaires list shows that Arnault's net worth reached a remarkable $207.8 billion during his rise to the top.
His wealth surpassed Musk's $204.5 billion in just one day, thanks to this increase of $23.6 billion.
Shares of Arnault's LVMH soared more than 13% on the back of strong sales, while Musk's Tesla fell 13% on the stock market.
When compared to Tesla's $586.14 billion market value, LVMH's $388.8 billion puts it in a very competitive position.
Aside from his impeccable taste in clothing, Arnault has risen to the top of the luxury goods industry thanks to astute economic decisions, such as his over $16 billion 2021 purchase of Tiffany & Co.
With five children now employed by the company, the Arnault family has ensured a lasting legacy for generations to come through LVMH.
LVMH's portfolio diversification
In addition to retail, LVMH controls over seventy brands in diverse industries, including fashion, jewelry, cosmetics, perfumes, wines, spirits, and watches. Because of this, the organization is able to adapt to new markets and customer tastes.
Louis Vuitton, Dior, Fendi, Givenchy, Bulgari, Sephora, Moët & Chandon, and Hennessy are among the most recognizable brands under the umbrella of LVMH.
Developing market expansion
LVMH has been pouring a lot of money into Asia, particularly India and China, because of the skyrocketing demand for luxury goods there. Online shopping, digital media, and sustainability are just a few of the new areas the firm has been expanding into.
As an example, in 2019, LVMH bought a 24% stake in the luxury fashion e-commerce portal Farfetch. 24S, LVMH's own online store, debuted in 2018.
Along with the LVMH Carbon Fund and the LVMH Prize for Young Fashion Designers, LVMH has also been a supporter of social and environmental projects.
Creativity and Innovation
Within its brands and staff, LVMH has been encouraging a culture of creativity and innovation. Designers and managers are encouraged to explore new ideas, products, and partnerships within the organization.
As an example, Fenty, a new premium fashion house that promotes diversity and inclusion, was founded by LVMH in partnership with Rihanna. The most inventive new businesses in the luxury industry are honored with the LVMH Innovation Award, a competition that LVMH established.
Leadership and Strategic Vision
Many consider Bernard Arnault to be among the most groundbreaking and consequential business CEOs of all time. Since 1989, when he arranged for Louis Vuitton and Moët Hennessy to unite, he has been in charge of LVMH.
Since then, he has turned the firm into a luxury goods behemoth on a worldwide scale.
Strategic thinking, opportunity recognition, and a dedication to quality and excellence are some of his most renowned traits.
He also supports cultural institutions, having founded the Fondation Louis Vuitton, a museum in Paris devoted to modern and contemporary art.
Many factors contributed to Bernard Arnault's rise to the status of wealthiest man in the world in 2024. His remarkable accomplishments are a testament to the power of determination, drive, and creativity.
Source: Forbes, TEKEDIA
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