It’s a change indicative of the turbulence in the luxury landscape
For luxury fashion, the times they are a-changin’. LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury group, is undergoing a major reshuffling of management as sales rebound after a period of difficulty.
Sidney Toledano, the Dior chief who built the brand into a multibillion-dollar label, will be stepping down after leading the brand for nearly 20 years. He will become chairman and chief executive of the LVMH Fashion Group, including eight of the group’s smaller brands including Céline, Givenchy, Loewe, and Emilio Pucci. Taking Toledano’s place is Pietro Beccari, chief executive of Fendi, another LVMH brand.
“I look around and see people retiring, and that is something I hate,” Toledano told the New York Times. “I was never bored at Dior, but it was time for a new direction. I believe in the luxury market — I don’t need to see analysis from consulting firms — and think we can catch more market share.”
LVMH reported last month higher-than-expected revenue growth for the third quarter and had a strong start to 2017 with about $22.9 billion in sales reported in July, an increase of 15 percent from the same period last year.
Toledano joined Dior in 1994 and immediately made his mark with the Lady Dior handbag, a bag that remains a bestseller. In 1998, he became CEO and has overseen the brand as it became a powerhouse. “Beccari will join Dior from Fendi, which he helped to propel beyond the billion-euro revenue mark by dropping its ubiquitous logo bags in favor of more upscale products, in addition to developing lifestyle destinations like Palazzo Fendi in Rome, comprising a boutique hotel and Zuma restaurant,” the Los Angeles Times writes.
“The appointment of Pietro Beccari as head of Christian Dior Couture signals a new era,” LVMH CEO Bernard Arnault said in a statement obtained by WWD. “He will be an excellent leader who will steer Dior towards ever greater success in the future.”