Vertical Integration. Factories for quality. Distribution for image. In house.

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Bernard Arnault was responsible for pushing the vertical integration of luxury brands much further than Henri Rachamier did.
Rachamier figured out the vertical integration with distribution to stores, but Bernard gets credit for vertically integrating the upstream side of the business.
This control of the distribution channels and quality of the products led to the success of luxury brands.

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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