The Power of Vertical Integration in Luxury Brand Manufacturing

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Bernard gets credit for vertically integrating the upstream side of the business
Louis Vuitton had outsourced 70% of their production, which dilute their brand
Bernard bought back the production in-house and tripled the number of Louis Vuitton owned factories
Controlling factories translates to quality control, while controlling distribution translates to image control

We tell the full history of LVMH, and how Bernard Arnault turned a $15m investment in a bankrupt French textile company into the world’s largest individual fortune. It’s a story that’s equal parts Berkshire Hathaway, Steve Jobs and Barbarians at the Gate… and wholly under-appreciated for the genius business model innovations that enabled it. Whatever industry you operate or invest in, there’s so much to be learned from Bernard and LVMH’s complete reshaping of the luxury sector over the past three and a half decades. And oh yeah, it also involves Nazi spies, Italian family murders, Rupert Murdoch, Rihanna becoming a billionaire, Jay-Z’s champagne feuds and Beyoncé wearing a 128 carat diamond. Tune in! :)

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