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0:07I am very competitive I always want to
0:15win the success of my group is Bates and
0:21the combination of creativity and organization today we will be joined by
0:28far the largest number one luxury brand in the world every competitor is trying
0:34to imitate I think they are not successful but they try [Music]
0:48in 30 years from now every match will still be at head of the luxury sector
0:57and very much is today just at the beginning in spite of its size our
1:04business model is based on creativity innovation and quality many people in
1:15the world who can do what he's done in life he's exactly the opposite what
1:20people think he is we're dealing with one of the most successful people in the world one of the great taste makers in
1:27the world it's somebody with the great vision somebody with a great eye he's always thinking always thinking about
1:32the future not only about the iconic titles brands that he has people who
1:38don't know him have a completely different idea of the people who know him he's one of the wealthiest people in
1:44the world and his wealth was accomplished in a single generation LVMH is comprised of seventy different brands
1:51divided into six different sectors it covers everything from the highest in perfumes and wines to the best leather
1:59goods in the world in the 90s at the
2:05idea of a luxury group and at the time I
2:11was very much criticized for it I remember people telling me it does not
2:17make sense to put together so many brands you know the brands it's Javan
2:23she its Fendi it's even Thomas pink Sephora Sephora he again was completely
2:31ahead of the game I remember when it first opened and everyone said he was crazy and it was never going to work he
2:36recognized that there would be a taste for luxury goods and frankly an ability
2:42to pay for them Bernard Arnault is the architect that brought them all together under one house and it was a success it
2:51is a recognized success when I was a child I was always trying
3:00to have fun it was always what we say in French disobey in school even if I was
3:08not bad at school but I like fun when I was young I was living by my grandmother
3:16because my grandfather died in 1959 and and I saw my grandmother very sad and so
3:24I said one day to my father and my mother okay I cannot leave her alone
3:29because I liked her a lot so I'm going to live with her and I went
3:34on the other side of the street so it's not very far and and she was extremely
3:41extremely helpful I met him back in 1979 in Lille north of France he had recently
3:48joined his father's company and I was still studying I was in my last year of college and I interned with him actually
3:56with his father and him both were at the company at that time my grandfather founded the company in
4:02the north of France then my father runs the company and I was always in contact
4:09with them I was always very interested and I never thought of doing anything
4:15else he started out as a civil engineer he worked for his family's construction
4:20company and my father was really exceptional because he always gave me a
4:27sense of business and when I arrived in the business with him after three years he told me say guy I think you are able
4:37to run the business so let's do it and he gave me the key I was 25 and I
4:45was running it was a small business only 1000 people but no it was risky for him
4:52because it's a business he built over his entire life by his mid-20s he was making some pretty
5:00big changes he wanted to move out of construction and manufacturing and into real estate and he was getting ready to
5:07invest in in America which was very unusual for a small real estate
5:12development company in France France was very conservative at that time you didn't do that especially at his age he
5:17was still in his 20s and it was very unusual for somebody of his age to take those types of decisions when we grew up
5:24he was actually not in luxury he was in real estate it was really something
5:30incredible to witness to see this this incredible ascension he started looking
5:36for gems for things that were undervalued even outside of what his
5:42company had done previously I was looking at several ideas and hid a
5:48Christian job and immediately I thought this brand has a lot of potential it is
5:56under evaluated it is small compared to
6:01what I thought the world was going to become and so I move to buy it do you
6:07was a jolly madam house you know that nice French ladies water lunch and it
6:16was not in any way creating fashion making fashion there was no excitement
6:22around it it was very staid and very safe he's an extremely creative French
6:28entrepreneur who built the largest and best luxury brand in the world he was a
6:34complete visionary he saw things that nobody else saw he saw the increase of
6:41wealth in the world we try to build a large business with our partners with
6:48one criteria the best quality and the most elitists product in every line that
6:56we are selling throughout the world it was a risky move at the time because it was much bigger than the company of my
7:03father but starting from that we built a and the
7:09image today Bernard Arnault is the most talked about man in the fashion world today your itself does over 1 billion
7:16dollars a year because wonders with mergers and acquisitions when I was 10 or 11 years old I understood that
7:23something was going on you know when you start seeing your your father's face on TV and in the newspapers when you also
7:30have people of 11 or 12 years old speaking to you about your own father
7:37saying oh I hear he's incredible and a genius so it that's how it happens
7:44actually and so quite early on we understood that something was going on if there is something he wants you to be
7:52aware of he doesn't beat around the bushes he'll be very very straightforward he invested in an
7:57unbelievable way until numbers came back of the way he expected [Music]
8:05[Applause]
8:13[Music]
8:44[Music] when I go working in the morning I
8:50always think I will have fun today with this of this I remember him telling me
8:55one day that 90% of his time was actually you know meetings that were not
9:03that interesting he said the other 10% are absolutely fascinating and then you
9:08know you speak to Carla Gore fellow you'll spend an hour with Frank Gehry these are the ones that you must enjoy
9:14but the other ones are important necessary to I am never bored it's what I have in
9:21mind when I think of myself young it's fun and I am very competitive
9:28so it's like in tennis I always want to win well that's fun you know I share a great admiration for
9:35a tennis player called Roger Federer and I think the happiest that I have ever seen Ben are was when his children
9:42secretly arranging for men are to have a match with Roger and I swear he showed
9:48me the video he acted it out stroke by stroke and then just last week he was
9:54telling me about a more recent game that they had had and at the end of the fifth
10:00game it was 5-0 Roger said well I'm gonna play now the way I would in a
10:06Grand Slam he stepped it up and all bare now could talk to me about was the fact that he'd actually won one point I have
10:13been looking and must say to have fantastic children they are all of them interested by family business so when I
10:25was 17 he gave me a pair of shoes and Berluti shoes they were the most incredible and beautiful shoes that I
10:32had ever seen but yes they gave me a sense of what this business was of the
10:38rarity and and beauty of it all but also it gave me a sense of responsibility
10:44like indeed at that time I kind of understood okay this is going to be the business that I'm going to be in I'm
10:50very very impressed with his relationship with his children he's just it's so attentive family is
10:56really all important to him and he really makes the time and I find that
11:02that is something that people miss out it takes a very special human being to
11:07be able to do that family business especially in in the luxury area is key
11:16for success [Music] when you are in a family you have two
11:23major advantages one is you can think long term it implies I'm not that much
11:30interested by the number of the next six months what I am interested in is that
11:37the desire for the brand will be the same in ten years as it is today the
11:48second advantage of being a family business is to hire people because when
11:53people come to Envy image they do not come in a group with some anonymity they
12:00come in the family you are not just a little person in a big thing you are
12:08member of the family and you will be taken care of as such many of these
12:13luxury houses many of these luxury companies began as family businesses
12:19luxury by definition has heritage it has a legacy and that's what you find and
12:25the consistency of a family to have the Empire he has based upon talent and good
12:32management skills but with very creative people who themselves probably think
12:38they're the best in the world at what they do and in many cases they're right and somehow he's able to get those
12:45people to work collaboratively and organize them and work for him which is
12:50saying a lot he never ceases to surprise me with his risk-taking and his ability
12:57to understand how important a creative force is at every house that without
13:02that you can have the most brilliant CEOs in the world you can have incredible marketing you have a brilliant strategy but without a driving
13:09force behind each each brand that you have nothing a lot of people see him as
13:15a great financier great strategic mind in in terms of how to build an empire
13:23that's not at all how he thinks in my opinion I think his big strength is
13:28actually to speak to creative people and to make them thrive under his
13:35management it's not to create profit or create more revenue or double the size
13:41of the business I know that's the consequence and that's usually what happens but his real talent is with
13:47creative minds you know the success of the group is made of the quality of the
13:52product and the quality of the product is a consequence of the extraordinary
13:57craftsmen and women that are working with us we have a large campaign of
14:03hiring young people that sometimes are
14:09not really thinking of becoming craftsmen or calf women but once we have
14:15given them the idea and once we train them we have a rate of success which is
14:20near 90 percent and it's very rewarding for us to see these young people being
14:29so proud he's developed that long tradition of quality and craftsmanship but but he also adapts and he adapts to
14:36the different generations you could think of Arno as a merchant but he's
14:42also thinking of just the tectonic plates and the shifts in the world I
14:49always try to think of what can we bring to a brand if we are looking at buying a
14:57brand what can the brand be how can it be
15:03improved also does it fit with the other
15:08brands most of the time it is a competitor but does it feel a niche where we could see we are not very much
15:17present and when that happened I must say we we can move
15:28it takes a certain amount of courage to stand against the tide there were a lot of naysayers he was paying full prices
15:36for things that weren't close to what other people would want and other people scoff that he would ever realize value
15:41or or anything from the prices that he was paying I met him when the Fendi take
15:47over was in the air there were other people who wanted Fendi too but when I met him I said to myself this one and
15:56nobody else and I've also hired the invested in an unbelievable way and the numbers came back the way he expected I
16:06am close to many of my businesses but so
16:11so one I have for the longest period of time is Christian Dior followed by Louie
16:18Vuitton so maybe these are the two I am the closer's he knows what he wants for
16:25his brands he manages to explain it quite clearly and if the result doesn't
16:31correspond to what he wants well he will very politely but quite clearly throw
16:38campaigns away and and have everybody rework open eyes a fascinating man he's
16:48reserved but also very direct and very clear if there is something he wants you
16:55to be aware of he doesn't beat around the bushes he'll be very very straightforward it's one thing to
17:01identify a moment in time and to have your taste and your vision collide with
17:09what the world would want at that moment in time but he's been successful over a
17:14lot of moments over a very long period of time across the world lucky to have
17:21met Steve Jobs the beginning of the 2000 and we were
17:28talking and joking he told me you know I don't know if in 50 years my iPhone
17:36will still be a success but I can tell you I'm sure everybody will still twinkle don't Perino
17:43the question next who is going to succeed you I wouldn't be giving him his
17:51lifetime achievement award yet I would wait a while longer because I think there's two more chapters
17:58[Music] [Applause]
18:07[Music]
18:26LVMH price is oriented to find the most talented young designer I think if you
18:36look at the success of the LVMH fashion prize which was started by his daughter
18:41Delphine a number of years ago I think he really started that as a garden if
18:48you like to discover new talent that was a genius idea you have to apply on the
18:54internet you have to have less than 35 years of page and you have to have
19:03already presented to shows and we were astonished at the beginning with the
19:09number of applicants we select 10 among
19:15these thousands of applicants and then certain are in fact meeting here with
19:22that project and this project has submitted to some of the best
19:30experienced designer because yeah certainly
19:36Delphine and then I will ask me what I think but in the end the decision about who the winners will be are made by a
19:42team of LVMH designers starting with with Karl Lagerfeld so I think they're
19:47certainly far more qualified than I would be to to pick a winner this year there will be changes because some
19:54people left as that people came because there are many musical chairs and the is a fashion world except me and it's
20:01always very interesting to see this young designer showing the products and
20:09defending the ideas there are creative ideas [Music]
20:16[Applause] he's become a great benefactor and
20:22philanthropist and of course foundation Louie Vuitton and the museum is just one
20:27example of it just the most famous example at the moment we started to do
20:35some philanthropic work for the group in the beginning of the 90s and I immediately thought of building
20:42something that was more a mark of what the group is doing and then at the end
20:48of the 90s beginning of 2000 I met Frank my first encounter with this museum is
20:55he and his wife brought me to the shard and acclimatize young and when I
21:02realized where he was bringing me he brought tears to my eyes because I felt like Proust was here a few months
21:10later he send me sketch of his first vision and it's not very different from
21:18what it is today I thought it's extremely creative and I asked for him
21:24to give me more details so we designed a museum that's solid mouse and then we
21:33enclose that in another envelope of glass and the glass was not to enclose
21:40interior it was just like sales and I talked about it like a sailboat like a
21:47regatta of sail so we started to build and then where to stop and then to we
21:53stopped building and all in whole it took me ten years today I looked at it
21:59and felt very proud to be part of this place the foundation was a great gift on
22:08behalf of Bonanno and his family to Paris when you think of cultural
22:13institutions in Paris it's been a long time and since a new one was built and I think it was a shot of vitality in the
22:20city of Paris [Music]
22:25[Applause] he sparks ideas he says what if for oh
22:30but Franck what could we do could we have a small concert hall or you know he
22:37says things just very softly but I know
22:44when he says it he means it and I go for it and and then we have fun
22:52trying to make it happen I can't say how much I love working with him he's a
22:59dreamer he dreams big dreams and then he has the guts to go after those dreams
23:05sometimes I try to tell him it's it's the dreams too big but of course he's always right the dreams are never big
23:12enough he does not compromise on quality he doesn't compromise on the quality of
23:18execution he doesn't compromise on commitment and I think that's really a big part of his recipe they imagine him
23:25in his big tower with his huge excel sheets with with numbers it's very very
23:30far from reality it's not as serious as some might think up there no I try to to
23:35keep God maybe people around are more nervous than I am I tried to guard them
23:41also in terms of where we are in the life of Bernard Arnault and LVMH he's
23:48got a lot of runway ahead of him and he thinks young and he thinks current I wouldn't be giving him his lifetime
23:54achievement award yet I would wait a while longer because I think there's still more chapters he has no interest
23:59in standing still he is no interest in repeating himself he has no interest in anything remaining the same he is a man
24:08that is intrigued by what can happen not by what has happened I admire him I'd
24:15like to be with him I like to be with his family and the God I can say he
24:21continues to you know arrive at the office early in the morning to leave often almost the last one
24:27the evening and he just enjoys it he likes managing people taking decisions
24:34important ones difficult one sometimes because you question next usually who is
24:39going to succeed you but the question for me is the best in terms of
24:52management capacity will be chosen in the future not because he is member of
24:59the family but as I said the group as a whole is a family and so we will choose
25:06in the family with the best but I think I will be there for some years
25:13[Music]
25:35[Music]
25:52you you
26:02you