< Previous10 Vol. 25/11, October 2024 Leader in Focus From engineering to elegance, LVMH’s CEO quietly built a $210bn empire – with a touch of class Bernard Arnault, the man who dressed the world in luxury WORDS BY KATE-LYNNE WOLMARANS ABE_AB Leaders Oct 2024_10-11_Leader in focus_13403556.indd 1027/09/2024 16:01arabianbusiness.com 11 Leader in Focus Fendi, Givenchy, and Bulgari, turning LVMH into a global powerhouse. What is Bernard Arnault best known for? A quiet, strategic brilliance – and a relentless pursuit of perfection. Arnault is known for his discreet but powerful leadership style. He rarely gives inter- views and shuns the limelight, prefer- ring to let the brands he owns take centre stage. His meticulous attention to detail and long-term vision have cemented him as a titan in both the fashion and business worlds. What are his plans for the future? Global domination – in the luxury market, of course. Arnault continues to expand LVMH’s reach, particularly in China and other emerging markets. He also focuses on sustainability, pushing LVMH to adopt greener practices across its brands. His love for art remains a key passion, as he continues to develop the Fondation Louis Vuitton, a museum dedicated to contemporary art. Will his children take over LVMH? The Ar nault dynasty is poised to continue. All five of Arnault’s children hold senior roles within LVMH’s vari- ous brands. While Arnault hasn’t offi- cially named a successor, his eldest son, Antoine, and daughter, Delphine, are seen as top contenders. However, Arnault has been clear that the family will retain control of LVMH for gener- ations to come. Ar nault, the visionar y behind LVMH, transfor med a modest construction background into the world’s most successful luxur y conglomerate. His strategic brilliance, sharp eye for acquisitions, and ability to stay ahead of market trends have made him not just the richest man in the world but also the undisputed king of luxury. His strategic brilliance, sharp eye for acquisitions, and ability to stay ahead of market trends have made him not just the richest man in the world but also the undisputed king of luxury ernard Arnault isn’t your typi- cal billionaire. While other s chase the spot- light, he quietly built the world’s largest luxur y empire, LVMH, turning brands like Louis Vuit- ton and Dior into global powerhouses. With a net worth hovering around $21bn, Arnault’s influence extends far beyond fashion – he’s redefined the meaning of luxury itself. From his early days in construction to becoming the wealthiest per son on the planet, Arnault’s journey is one of strategic genius, relentless drive, and a love for the finer things in life. But behind the tailored suits and art collections lies a sharp businessman who’s shaped the future of luxury, and he’s not slowing down anytime soon. How did Bernard Arnault become the wealthiest person in the world? By owning some of the world’s most iconic luxury brands. Arnault, CEO and chairman of LVMH, boasts a net worth of around $210bn as of 2024, making him the wealthiest person on the planet. His luxury empire spans 75 brands, including Louis Vuitton, Chris- tian Dior, and Moët Hennessy. But it all began far from the glitzy world of high fashion. What was his first job? It wasn’t exactly glamorous. Arnault started working for his father’s civil engineering and construction company, Ferret-Savinel, in the early 1970s. He earned a modest starting salary of 6,000 francs (about $1,200 at the time). But he quickly proved himself, and within a few years, he was running the company. He later persuaded his father to shift the business toward real estate develop- ment, which would become the founda- tion of his fortune. What’s his educational background? He’s a graduate of one of France’s top institutions. Arnault earned his degree from the prestigious École Polytech- nique in 1971, where he studied engi- neering. While his background is tech- nical, it gave him a strong analytical and problem-solving approach, which later helped him strategically grow LVMH. How did he transition from construction to luxury? He saw potential in luxury long before it was fashionable. In 1984, Arnault acquired the struggling textile group Boussac, which owned Christian Dior. This was his entry into the world of luxury. By 1989, he had taken control of LVMH, formed from the merger of Louis Vuitton and Moët Hennessy, and began to build his empire. Over the decades, he acquired iconic brands like ABE_AB Leaders Oct 2024_10-11_Leader in focus_13403556.indd 1127/09/2024 16:0212 Vol. 25/11, October 2024 Retail Incorporating a retention-first mind-set is not just a strategy – it is a paradigm shift Why keeping customers is the key to business success WORDS BY ZAFER AKYEL, DIRECTOR, SOLUTION ENGINEERING EMEA, WEBENGAGE A cquiring new customers is a costly endeav our . It demands substantial invest- ments in marketing efforts, resources and, often, offer s and discounts to draw potential customers. These efforts, while boosting short-term sales, do not necessarily contribute to long-term growth and stability. On the other hand, retaining existing customers is a more cost-effective strategy that offers higher returns on investment. Retained customers are familiar with your brand, trust your products, and are more likely to make repeat purchases. The financial benefits of customer retention are significant. Studies have shown that it costs five times more to ABE_AB Leaders Oct 2024_12-13_Retail - Customer retention_13403540.indd 1227/09/2024 16:02arabianbusiness.com 13 Retail ated, they are more likely to remain loyal. Customer ser vice excellence is another critical component of retention. Providing timely, efficient, and person- alised support enhances the overall customer experience, particularly in this age of omni-channel engagement. It is vital that a retention-focused strategy be embedded in all aspects of business operations. For instance, developing high-quality products that meet customer expectations reduces the likelihood of dissatisfaction and churn. Similarly, marketing efforts should not only focus on attracting new customers but also on engaging and retaining existing ones. Incorporating a retention-first mind-set is not just a strategy; it is a paradigm shift. It requires a comprehen- sive approach that integrates all facets of the business towards the goal of retaining and delighting customers. Brands can ensure long-term growth, stability, and success through operating within this mind-set. acquire a new customer than to retain an existing one. Moreover, increasing customer retention rates by just 5 percent can boost profits by at least 25 percent. Customer retention is the cornerstone of maximising profitability and leveraging the value of existing rela- tionships. Repeat customers have been shown to spend 67 percent more during months 31-36 of their relationship with a company than a new customer does in their first six months. Several companies have success- fully implemented retention strategies that have led to significant growth. Amazon’ s Pr ime member ship programme is an example of a success- ful retention-focused approach. With benefits such as free shipping, exclusive deals, and access to streaming services, Amazon has created a loyal customer base that continues to g row. The programme not only encourages repeat purchases but also enhances customer satisfaction and loyalty. Loyal customers not only contribute to a steady revenue stream through repeat purchases but also act as brand advocates. Their positive word-of-mouth referrals can significantly enhance our brand’s reputation and attract new customers organically. Martech has the answers – and the tools Marketing technology (martech) solu- tions such as automation, data analytics, and artificial intelligence (AI) have revo- lutionised how brands engage with customers. In the next few years, AI, in particular, will be a game-changer. By processing vast amounts of customer data, AI tools have enabled data-driven deci- sions within Customer Data Platforms (CDPs) that fuel modern retention strat- egies. Primarily, they have allowed real- time data analysis to identify early signs of customer churn and enable proactive interventions that retain customers. For example, predictive analytics can identify customers who are at risk of attrition based on their behaviour patterns. A fully equipped Customer Engagement Platform (CEP) can recog- nise these signs early and implement automated, targeted retention campaigns, such as special offers or personalised communication, to re-engage those customers and prevent churn. The tech- nology needed for a powerful retention operating system within a business is better than it has ever been. Making retention the larger goal Building strong connections with customers takes time and effort. It requires understanding their needs, preferences, and pain points. By custom- ising products, services, and communi- cations to demonstrate that brands truly comprehend them, brands can build a foundation for healthy, long-term rela- tionships. This approach significantly boosts customer lifetime value. Regular communication through personalised emails, newsletters, and social media interactions keeps the brand top-of-mind. Actively seeking feedback and showing that brands value customer opinions also fosters trust and loyalty. When customers feel heard and appreci- Loyal customers not only contribute to a steady revenue stream through repeat purchases but also act as brand advocates ABE_AB Leaders Oct 2024_12-13_Retail - Customer retention_13403540.indd 1327/09/2024 16:0214 Vol. 25/11, October 2024 Opinion Women remain underrepresented in sectors that significantly contribute to national GDP, such as mining, construction, and manufacturing, where female representation is less than 10 percent Advancing Saudi women in the workforce words by KUNAL KUMAR, SENIOR MANAGER, OCO GLOBAL 14 Vol. 25/11, October 2024 ABE_AB Leaders Oct 2024_14-15_Opinion - Saudi female workforce_13403614.indd 1427/09/2024 16:03arabianbusiness.com 15 Opinion The road ahead Saudi Arabia’s journey toward gender equality and workforce inclusivity has been encouraging, but there is still work to be done. Structural, regional, and cultural barriers continue to limit women’s full participation in some industries and regions. Yet, the country is on the right path, with policies and programmes in place to address these challenges. Saudi companies are increasingly embracing gender diversity, and recog- nising that fostering an inclusive work- place not only supports women but also enhances overall business performance. It would be good to see firms introduc- ing flexible working arrangements, which are critical to reducing the mid-career dropout rate among women, particularly those in their 40s who often leave the workforce to manage family commitments. Moreover, introducing return-ship programmes, which provide tailored training and mentorship, would help women re-enter the workforce after career breaks. These initiatives offer a lifeline for women who have taken time off for family reasons and are eager to regain their skills and confidence. The introduction of gender parity reports for public and private companies, alongside incentives like tax breaks for those meeting targets, could further promote female leadership and reduce pay gaps. In addition, shared parental leave policies, similar to those in Sweden, would encourage shared caregiving responsibilities, enabling women to pursue their careers without facing a disproportionate burden of family duties. As Crown Prince Mohammed bin Salman has stated: “Women are half of society, and we want to give them the opportunity to lead and succeed.” With ongoing efforts, Saudi Arabia has the potential to lead the region in gender equality, creating a vibrant, diverse, and inclusive workforce that drives sustainable economic growth under Vision 2030. By fostering oppor tunities for women and breaking down the barriers that hold them back, Saudi Arabia is not only advancing gender equality but also unlocking the full potential of its econ- omy. The progress so far is a testament to the power of determination, and with continued focus, the future looks bright for women in the Saudi workforce. S audi Arabia has made remarkable strides in increas- ing female workforce partic- ipation, with the percentage of women in the labour force rising from 22 percent in 2018 to an impressive 35.6 percent by 2022, surpassing the targets set by Vision 2030. This growth is driven by the government’s focus on empow- er ing women through numerous programmes and initiatives, paving the way for more women to enter diverse industries and assume leadership roles. Over 40 initiatives have been launched by various entities to support women’s participation in the workforce. Among the most impactful have been the Wusool and Qurrah programmes. Wusool provides transportation suppor t for women, helping them commute to work and overcome mobility challenges, particularly in areas where public transport is limited. By offering subsidised rides, the programme has benefited over 100,000 women, empow- ering them to pursue careers without worrying about transportation barriers. At the same time, Qurrah offers childcare subsidies, allowing women to balance family responsibilities with their professional aspirations. This initiative has been vital in encouraging mothers to remain in the workforce by reducing the burden of childcare costs and ensuring access to quality care for their children. These prog rammes, alongside others, reflect the country’s commit- ment to creating an enabling environ- ment for women to thrive in their careers while managing family commitments. Increasing representation in key sectors Despite these achievements, there are still sector-specific barriers to women’s full participation in certain industries. Women remain underrepresented in sectors that significantly contribute to national GDP, such as mining, construc- tion, and manufacturing, where female representation is less than 10 percent. In logistics, for example, female labour accounts for only 4 percent of the total workforce, partly due to restrictive job categorisation and societal perceptions that limit women’s access to non-phys- ical roles in these industries. However, efforts are underway to address these disparities. There is a growing recognition that revising job classifications and opening up roles in HR, legal, and strategy within these industries could greatly enhance gender diversity and economic productivity. Companies are increasingly aware of the value that female talent brings and are actively exploring ways to create more inclusive workplaces. Bridging regional disparities While women in urban areas like Riyadh, Makkah, and the Eastern Province have better access to job opportunities, rural women face more significant challenges. Currently, 92 percent of female employment is concentrated in these three economic hubs, leaving rural areas underrepre- sented. In some rural regions, female unemployment rates have reached as high as 45 percent. Limited infrastruc- ture, fewer job oppor tunities, and cultural restr ictions on mobility contribute to these disparities. To address these regional inequali- ties, targeted efforts are needed to improve access to jobs for women in these areas, including telecommuting options and localised training programmes. Expanding the reach of initiatives like Wusool to rural commu- nities could further bridge the gap, help- ing more women join the workforce. Overcoming cultural barriers and promoting STEM education Cultural expectations also play a role in shaping women’s career choices. Despite making up 55 percent of university graduates, women are often encouraged to prioritise family respon- sibilities over their careers, particularly in male-dominated sectors. This is especially evident in STEM fields, where female participation remains below 5 percent. To encourage more women to pursue careers in high-demand indus- tries, the country can look to interna- tional models of success, such as the UK’s Tech She Can initiative, which inspires young girls to pursue careers in technology. Additionally, mentorship programmes like Canada’s women in STEM and leadership roles initiatives could serve as models for Saudi Arabia to increase female representation in these critical sectors. arabianbusiness.com 15 Opinion ABE_AB Leaders Oct 2024_14-15_Opinion - Saudi female workforce_13403614.indd 1527/09/2024 16:0316 Vol. 25/11, October 2024 Business Podcasts We’ve scoured the web to bring you the best finance podcasts of the year The audio guide to business brilliance Words by KATE-LYNNE WOLMARANS B usiness is all about staying sharp. But why endure hours of dr y lectures when you can learn with a bit of humour and creativity? We’ve handpicked the best finance podcasts that promise to inspire, educate, and entertain. From billion- aires’ strategies to crypto insights, these shows are your new secret weapon. First up, We Study Billionaires – the largest stock invest- ing podcast. Hosts Preston Pysh, Stig Brodersen, and their team deliver insightful chats with financial giants like Warren Buffett. Whether you’re into stock investing or curious about Bitcoin, this one’s got you covered. Next, Afford Anything is for those looking to master personal finance. Host Paula Pant proves you can afford anything – just not everything at once. With wit and wisdom, she makes budgeting almost fun. For the younger crowd, Millennial Investing breaks down complex finance concepts for anyone aged 18 to 40. It’s like getting financial advice from a cool mentor – minus the confusion. Unchained dives into the world of crypto. Host Laura Shin makes digital assets easy to understand, ensuring you’re ahead in the blockchain game. And for a fresh take on economics, Planet Money turns financial concepts into entertaining stories, making econom- ics feel as gripping as a detective novel. With these podcasts, you’ll be up to speed on finance and business – all while enjoying a good laugh. Tune in and level up. Right then, let’s begin. ABE_AB Leaders Oct 2024_16-19_Business podcasts_13403646.indd 1627/09/2024 16:05arabianbusiness.com 17 Business Podcasts Best Financial Markets Podcast: We Study Billionaires With over 150 million downloads, We Study Billionaires is the go-to for stock investing insights. Hosts Preston Pysh, Stig Brodersen, William Green, and others interview finance giants like Warren Buffett and Howard Marks. Covering both traditional markets and emerging trends like cryptocurrency, it’s packed with prac- tical strategies. The podcast’s mix of billionaire wisdom and actionable advice makes it essential for serious investors. New episodes: Four times a week Episode length: 40 to 60 minutes ABE_AB Leaders Oct 2024_16-19_Business podcasts_13403646.indd 1727/09/2024 16:0518 Vol. 25/11, October 2024 Business Podcasts Best Finance Podcast for Millennials: Millennial Investing Geared towards 18 to 40-year-olds, Millennial Investing is the perfect introduction to value invest- ing and the financial world. Host Shawn O’Malley simplifies complex topics, covering stocks, ETFs, and personal finance tips. His engaging style and real-world examples make it easy for young inves- tors to get started on the right foot. Whether you’re just beginning or refining your strategy, this podcast is a must-listen. New episodes: Every Monday and Friday Episode length: 30 to 60 minutes Best Personal Finance Podcast: Afford Anything Afford Anything challenges the idea that you can have it all – but you can afford anything, just not everything. Host Paula Pant takes listeners through smart financial choices, offering real-life stories on financial independence and money management. With her approachable and humorous style, Pant makes complex finance topics relatable, helping you make choices that align with your values and financial goals. New episodes: Sporadic Episode length: 10 to 90 minutes ABE_AB Leaders Oct 2024_16-19_Business podcasts_13403646.indd 1827/09/2024 16:05arabianbusiness.com 19 Business Podcasts Best Economics Podcast: Planet Money Planet Money makes economics fun and accessible through stor ytelling. Hosts Kenny Malone, Amanda Aronczyk, and Sarah Gonzalez break down global economic trends and everyday finan- cial issues in an entertaining way. They bring humour and insight to topics ranging from trade wars to cr yptocurrencies, making complex economic concepts engaging for listeners of all levels. It’s economics, minus the jargon. New episodes: Every Wednesday and Friday Episode length: 15 to 30 minutes Best Cryptocurrency Podcast: Unchained Unchained, hosted by blockchain expert Laura Shin, dives into all things crypto. From emerging trends to in-depth interviews with industry leaders, this podcast covers the latest in blockchain and digital assets. Shin breaks down complex topics in a clear, engaging way, making it accessible for both seasoned crypto investors and those just beginning to explore the space. New episodes: Every Tuesday Episode length: 60 to 75 minutes ABE_AB Leaders Oct 2024_16-19_Business podcasts_13403646.indd 1927/09/2024 16:05Next >