Often photographed in a modest navy blue suit, matching tie and crisp white shirt, you’d never guess Bernard Arnault is the world’s richest man in fashion. He doesn’t flaunt his wealth with flashy outfits, gilted watches and over-the-top branding, unlike Trump’s bold and brash personal branding strategy.
Instead, the chairman and CEO of LVMH Group — Louis Vuitton, Moët & Chandon and Hennessy — has built an empire of 70 fashion houses and brands beginning with the purchase of Christian Dior (Dior), a perfume brand worn by his mother, which he said fascinated him.
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With a low-key demeanor, the multibillionaire has focused on creating timeless appeal and longevity to promote his brands, rather than drawing attention to himself, practicing the philosophy of quiet luxury.
Here are three quiet luxury lessons from the richest billionaire in fashion– and how they build wealth.
Create Desirability, Profit Will Follow
“The goal is to increase and continue desirability of what you do long term. That’s the goal,” Arnault said. “And I say all the time to my teams, don’t think of money. Profitability is a consequence of the desirability that you create, that we create together for your brand.”
Here, he’s implying that it’s best to stay away from chasing short-term profits and focus on crafting long-term value in the long game. Rather than focusing on a quick sale, put your energy toward quality with a clear purpose. This will enable you to command high prices based on the perceived value of your brand.
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Arnault told CNBC he has always manufactured his goods in Europe rather than China. During the pandemic, he sold them to Asia and received a 13% rise in sales while other fashion houses faltered due to Asia’s COVID-19-related shipping restrictions.
Durability Is the Key
“A good product can last forever,” Arnault said to CNBC.
Fast fashion and mass consumerism might deliver instant gratification and a quick sale. However, craftsmanship and durability create longevity. You may spend a little more and have a timeless product rather than a short-lived product that needs to be repurchased because it breaks. Arnault designs his products to last for decades, not the fleeting season.
Treat People Like Family
“We keep them. And it’s like a family … All these designers, we keep them,” Arnault said to CNBC.
The fashion industry is known for having a high designer turnover. Designers come and go, often moving between different fashion houses. Arnault told CNBC that when you enter LVMH, you don’t enter an anonymous company; you enter a family.
“You become a member of our family, which is why we’ve been able to retain the best designers — Nicolas Ghesquiere at Louis Vuitton, Maria Grazia at Dior, Jonathan Anderson at LOEWE for a long time,” he added. “And it’s like a family; it’s a spirit we try to put, not only in the real family, but in the company family,” Arnault said. Cultivating these long-standing relationships had led to high returns for Arnault.
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This article originally appeared on GOBankingRates.com: Quiet Luxury Lessons From the Richest Billionaire in Fashion — and How They Build Wealth
