Editor’s Note
The luxury landscape shifts as LVMH finalizes its landmark acquisition of Tiffany & Co., a move set to redefine the group’s jewelry and watch division. This consolidation underscores the ongoing transformation within the high-end retail sector.
On January 7, French luxury goods giant Louis Vuitton Moët Hennessy (hereinafter referred to as “LVMH Group”) announced the completion of its acquisition of the American high-end jewelry house Tiffany & Co. Tiffany officially becomes the 75th luxury brand under the LVMH Group umbrella. LVMH Group stated that Tiffany’s addition “will profoundly transform LVMH’s watch and jewelry division.”
Following the completion of the acquisition, LVMH Group immediately initiated a change in Tiffany’s management team. LVMH Group announced the appointment of Anthony Ledru, former Executive Vice President of Global Commercial Activities at Louis Vuitton, as the new Chief Executive Officer of Tiffany. This appointment is effective immediately.
Prior to joining Louis Vuitton, Anthony Ledru served as Senior Vice President for North America at Tiffany for nearly two years. In December 2014, Ledru moved to Louis Vuitton to serve as the brand’s President and CEO for North America.
Simultaneously, Alexandre Arnault, former CEO of the high-end luggage brand RIMOWA under LVMH, will immediately assume the role of Executive Vice President at Tiffany, becoming the company’s second-in-command to assist Anthony Ledru in managing Tiffany’s product and communications businesses.
Notably, Alexandre Arnault is the second son of LVMH Group Chairman Bernard Arnault, aged 28. He began managing the RIMOWA brand in 2016, playing a pivotal role in LVMH’s €640 million acquisition of this German luxury luggage brand.
The third key executive appointed to Tiffany in this round is Michael Burke, who will serve as Chairman of Tiffany’s Board of Directors. Michael Burke has long served as Chairman and CEO of Louis Vuitton.
Following the appointments of these three heavyweight executives, a series of reform measures will be launched to promote Tiffany’s performance growth. As a 183-year-old jewelry house, Tiffany is globally renowned for its iconic “Tiffany Blue” shopping bags and the Robins Egg Blue Tiffany Blue Box. Its most famous products include diamond engagement rings, crystal glassware, and other high-end gifts.
Currently, Tiffany has 320 stores worldwide, with nearly two-thirds located in markets outside the United States. In recent years, as growth in the US market has slowed, the rise of consumer power in countries like China and other Asian nations has made the Asian market a key driver of Tiffany’s performance growth.
Analysts believe the Asian market will be a key focus for LVMH Group after taking control of Tiffany. However, Tiffany also needs to upgrade its store image and increase investment in online channels.
Investment bank Bernstein analyst Luca Solca described the three executives as “a heavyweight team.” The Financial Times quoted Luca Solca’s analysis: “Combining the thinking of experienced professional managers with the rising (Arnault) family members (and potential future leaders) creates a visible environment for success at Tiffany.”
Based on Anthony Ledru’s past experience, he has a rich history and extensive experience in the North American luxury goods industry, particularly in the jewelry sector. Anthony Ledru began his career in the luxury goods industry at the French high-end jewelry house Cartier, working in Cartier’s Latin American and US markets between 1999 and 2011, eventually rising to become Cartier’s Vice President of Retail for North America. In 2012, Anthony Ledru joined another American luxury jewelry brand, Harry Winston, briefly serving as Global Sales Vice President.
On the other hand, appointing Alexandre Arnault as Tiffany’s second-in-command signifies the Arnault family’s further penetration into LVMH Group’s high-end jewelry and watch businesses. Just in July 2020, Bernard Arnault appointed his 25-year-old third son, Frédéric Arnault, as CEO of LVMH Group’s Watch and Jewelry Division.
Prior to this, Frédéric Arnault had been responsible for digital sales and channel expansion for the high-end sports watch brand Tag Heuer under the group. Currently, Tag Heuer is partnering with British watch retail giant Watches of Switzerland to jointly expand the US retail store network. By the end of 2020, Tag Heuer had already added new stores in three regions: Miami, Florida; Chicago, Illinois; and New York City.
With Tiffany’s formal addition, LVMH Group’s high-end jewelry business landscape in North America will undergo significant changes. The appointment of experienced executives and family members also reflects Bernard Arnault’s determination to manage, reform, and expand in the North American hard luxury sector.
Although LVMH Group holds absolute dominance in multiple high-end retail sectors such as fashion, luggage/leather goods, and travel retail, it has been unable to conquer the hard luxury market represented by high-end jewelry and watches. In this sector, its biggest rival and competitor is the Richemont Group, which owns multiple top jewelry and specialist watch brands like Cartier, Van Cleef & Arpels, Piaget, Jaeger-LeCoultre, and holds a huge market share in the global hard luxury market.
In 2011, LVMH Group acquired the Italian high-end jewelry house Bulgari. After a series of reforms, Bulgari’s sales and profits have shown significant improvement. Analysts predict that LVMH Group will draw on the experience of acquiring and reforming Bulgari, including streamlining product lines to reposition the Tiffany brand.
