Monday, July 22, 2024

History of the Company LVMH

Louis Vuitton is one of the most expensive and well-known brand existing in the world. With its products being in the range of 15 thousand dollars, making it the world’s leading luxury products group.

Bernard Jean Étienne is a business magnate, investor, and art collector from France. He is the founder, chairman, and CEO of LVMH Mot Hennessy Louis Vuitton, the world’s largest luxury goods corporation.

But how did this all begin? It starts back in one of the villages in France where a kid named, Louis Vuitton lived with his parents but shortly after the death of his mother, his father married another woman. He didn’t like his fathers doing so at the age of 13 he ran away and started doing all the jobs he could find in order to have money for his food. He then met with a carpenter who took him under his wing and taught him all the basics of handling cloth and metals.

He then received on the most important order ever, he had to prepare a suitcase for the empress meaning he had the chance to work with loyalty. This is how the brand louis Vuitton started with their first product being suitcases with flat tops making them easier to travel with. But then World War 1 began meaning he had to close down his shop and hide and by the time he could come back, all was already lost.

But without wasting any time louis shifted to a better location where he knew more customers will be attracted but soon after he passed away and the company was passed on to his son, George Vuitton. In order to keep his fathers shop running, he started making modifications, such as making locks which couldn’t be broken easily. He also noticed how other brands started making more fame and introduced hand bags as the second product of this huge company. But soon he also passed away and his son, Gaston Vuitton became the next head of the company but World War 2 began forcing them to go into hiding. By then many allegations started forming on this company such as the CEO taking help from the Nazis to support their company but it was also said that if he didn’t do this, the company wouldn’t have lasted. Soon the company was handed to his son-in-law Henry Recamier, who started off by expanding the company in different countries. He also did a collaboration with the biggest alcohol company Moët from where the name changed into LVMH Moët Hennessy – Louis Vuitton.

Bernard Arnault wasn’t born poor like Louis Vuitton but instead was the son of a civil engineer and his mother worked in Dior. After completing his degree, he convinced his father to work with a real estate company to which he agreed. Once he visited America and had a conversation with a taxi driver who didn’t knew who was the president of France but knew every well of the brand Dior. This was a very big lesson for Bernard and when he got to know that the brand Dior was losing his stance, he brought the company along with his friends.

After merging of the LV and MH, it became harder for Henry to maintain relationships with his partner which reminded him of his friend, Bernard Arnault. Being already interested in this company, Bernard slowly started investing in this company and soon became one of the biggest shareholder of LVMH. Henry attempted to file a case against him but alas he won and started expanding his empire. After gaining success he started investing in many other major brand companies. He also attempted taking shares from the famous brand Gucci but the company holders didn’t let him win by giving some of their employees the shares after which he sold his shares and left Gucci. He became the owner of 70 well-known brands and had an enormous amount of people working under him.

Mehjabeen Qasim
Mehjabeen Qasimhttps://startuppakistan.com.pk/
Business Journalist at Startup Pakistan

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