Has true Luxury lost meaning in an Era of Accessibility?
Exploring the Intersection of Art, Business, and Innovation in High Fashion Through Bernard Arnault’s Transcending Vision of Luxury.
The internet has played a pivotal role in democratizing activities traditionally seen as elitist and normalizing the consumption of goods once reserved for specific demographics. This shift has notably transformed the fashion and luxury goods industry. Over the past three decades, this sector has experienced unprecedented growth, evolving into a multi-trillion-dollar industry. This expansion can be attributed to the strategic shift in marketing by renowned fashion houses. Previously exclusive to the affluent, these brands now cater not only to the wealthy but also to those aspiring to attain a similar status. Prior to the 1990s, fashion houses predominantly catered to an elite clientele – sophisticated, aristocratic, and bourgeois. However, in recent years, they have effectively been targeting a new, different, and more diverse customer base: a broader audience seeking the elevated status associated with luxury and fashion.
Bernard Arnault, CEO of LVMH (Louis Vuitton Moët-Hennessy), the world’s largest group of luxury goods and often referred to as the richest man in the world, represents the main driving force of this industry transformation. Since the creation of the group in 1987, he has acquired the most prestigious labels ranging from Christian Dior, Louis Vuitton to Givenchy, propelling the conglomerate to its number one position. However, this meteoric rise has not been without controversy. It raised eyebrows as the 74-year-old French businessman is not rooted in couture or creative arts. The acquisitions involved high-stakes maneuvers and often ruthless tactics to gain control of these companies. This scenario not only underscores broader questions about the role of diverse backgrounds in driving innovation and evolution within the fashion industry but also brings to the fore the complex interplay between business and art.
THE ARCHITECT OF OPULENCE: REDRAWING BOUNDARIES OF COUTURE
Bernard Arnault at the Dior house, in Paris, in 1988, Photograph by Michel Baret,Gamma-Rapho
Despite being the most influential person in the fashion industry, Arnault studied civil engineering and mathematics and worked as an engineer in his father’s construction company in Roubaix, in northern France. In 1971, he became president of Ferinel-Savinet, a real estate firm. In 1984, he displayed his visionary skills by seizing the opportunity to acquire the struggling Boussac Saint-Frères empire, a significant player in the textile and retail industry since 1911, which included the prestigious Christian Dior brand, then built an empire from that. Arnault saw potential in this conglomerate, particularly in its ownership of Dior, synonymous with luxury and high fashion. This bold decision in strategically streamlining the empire by focusing on the most valuable assets paid off; he revived and restructured Dior, turning it into a profitable venture. His success with Dior set the stage for further expansion. However, he only retained the most profitable elements of the group and sold off the rest.
Through this acquisition, Bernard Arnault not only saved a failing conglomerate but also laid the foundations for LVMH’s future success, demonstrating his ability to identify and capitalize on opportunities within the luxury market. However, these chess moves were often frowned upon in France and by the fashion purists. Arnault’s entry into luxury represented a major shift from the traditional norms that characterized the sector. Traditionally, luxury businesses were seen as the preserve of ancient families, where the passage of the torch is through generations within the family. For better or worse, he disrupted this trend by bringing a fresh new wave of commercial strategies and managerial practices to this mainly French industry deeply rooted in tradition.
Bernard Arnault (right) along with the founders of LVMH Alain Chevalier (left) and Henry Racamier (center) , in 1988 Photograph by Pierre Guillaud
Arnault kept breaking boundaries and began acquiring other luxury brands. The formation of LVMH occurred later, in 1987, through the merger of Louis Vuitton with Moët Hennessy, which was an entirely separate development from the acquisition of Boussac. This transformation was not without its critics. Arnault's methods, especially his aggressive acquisition and restructuring tactics, earned him a reputation for being more of a businessman than a couturier. This was somewhat at odds with the established ethos of the fashion industry, which traditionally valued artistic and creative heritage over purely commercial considerations. Arnault's strategies sometimes led to significant layoffs and selling off of non-core assets, which was seen as unethical compared to the conventional approach of nurturing and preserving all aspects of a luxury brand. This approach led to mixed reactions in France, a country known for its egalitarian principles and mixed feelings towards capitalism at the time and the accumulation of wealth. Arnault's success, therefore, stood as a paradox in a country not known for its embrace of unbridled capitalism.
CAN BUSINESS AND ART COEXIST?
Jay-Z and Beyoncé for Tiffany & Co., photograph by Mason Poole
The exponential growth inevitably raises questions regarding the quality of the garments and the authenticity of the craftsmanship that initially elevated these brands and propelled the luxury group to new heights. As the consumer base evolves, there is a concern that the emphasis on artistry and quality might be overshadowed by the business aspects, even if it is still considered higher quality than most premium fashion brands. Today’s consumers, potentially less focused on garment quality compared to traditional purists, may be more influenced by celebrity endorsements and social media influencers.
Untitled, painting by Jean-Michel Basquiat
The tension between art and business in the luxury fashion industry can be contextualized through the lens of artists like Jean-Michel Basquiat and Andy Warhol, and their perspectives on an over-consuming society. Basquiat, known for his raw, graffiti-based art, often expressed skepticism toward the commercialization of art and culture. His works can be seen as a critique of the very consumer culture that luxury brands capitalize on, vividly denouncing power, money, and a brutal vision of the world. On the other hand, Warhol embraced the commercial aspects of art, famously turning everyday consumer goods into high art and celebrating celebrity culture in his works.
This dichotomy reflects the current state of the luxury fashion industry. On one hand, the industry has its roots in high craftsmanship and artistic expression, much like Basquiat's genuine and raw artistry. On the other hand, it has evolved to embrace the principles of branding and marketing, aligning more with Warhol's commercial approach. The use of celebrity endorsements and social media influencers in marketing luxury fashion mirrors Warhol's fascination with celebrity culture, yet it also raises questions about the potential overshadowing of the artistic and craft-based essence of these brands.
Pharrell Williams posing in Louis Vuitton for GQ
Furthermore, the trend of appointing creative directors without a traditional background in fashion design or couture also raises questions about the evolving identity of luxury fashion brands. Traditionally, these brands have been anchored in a rich heritage of craftsmanship and design expertise. The move towards appointing figures like Virgil Abloh and Pharrell Williams, known more for their broader cultural influence than formal fashion design training, could be seen as a departure from this heritage. While this approach brings fresh perspectives and can appeal to a wider, more diverse audience, it also challenges the traditional notions of what constitutes a luxury fashion brand's identity.
In the case of Louis Vuitton, these appointments reflect the brand's strategy to remain culturally relevant and appeal to younger, more diverse demographics. However, they also highlight the tension between maintaining the brand's legacy in high fashion and adapting to a rapidly changing cultural and consumer landscape.
Kanye West and Virgil Abloh during the Louis Vuitton’s Spring 2019 Menswear presentation, photograph by Pascal Le Segretain
Arnault’s approach to the fashion and luxury goods business reflects a similar ethos to the Brutalist artistic movement, with its focus on raw intentions and straightforwardness. This can be seen in the context of Louis Vuitton’s hiring of Virgil Abloh and Pharrell Williams as these appointments challenged conventional norms.
Overall, the luxury fashion industry is at a crossroads, balancing between its traditional roots in craftsmanship and the demands of a rapidly evolving market where cultural influence, branding, and celebrity associations play a significant role.
How do you perceive the balance between artistic integrity and commercial success in the fashion industry? Is one more important than the other?
