How can luxury goods companies thrive in a time of rapid political, economic and technological disruption? Leading executives, innovators and financiers offer their suggestions on the latest changes and what lies ahead.

Give designers time to grow — and employ more female CEOs

SIDNEY TOLEDANO, CHAIRMAN AND CHIEF EXECUTIVE OF LVMH FASHION GROUP

During Sidney Toledano’s 27-year tenure at LVMH, the group has generated record results (last year LVMH recorded €46.8bn in sales). The key, he says, is to give things time. “First of all we do not call ourselves a conglomerate. That is not a term we use at LVMH — we are not an umbrella, we look at each brand as both an individual and a collective. Building a brand takes time. There are three pillars to a successful brand, you have the designer, the management and the brand. These components need to work together, and this takes time. It takes five to six years for a brand to grow and reach its potential.”

Of managing designer temperaments, he says: “You need passion for designers. They are not easy. They need to trust you. They don’t want you to be like them . . . They have the vision and their dream. You are the orchestra conductor and you have to organise things for them. The most difficult thing is to balance between the brand, the designer and management . . . My role is to coach and work with the CEOs and designers, and give the right direction in terms of financial resources and attention. ” Several of the luxury brands within his remit, including Loewe, Celine and Kenzo, have female chief executives. “Women make great CEOs. Women do not have the ego of men, what they have is unlimited ambition. And they listen.”

Flora Macdonald Johnston, Harriet Agnew and Rachel Sanderson MAY 22, 201

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