What LVMH’s Bernard Arnault Can Teach Product Managers About Long-Term Strategy
When I began my MBA journey, I didn’t expect a deep dive into luxury conglomerates to influence how I think about product management. But my Strategic Management project on LVMH, the world’s largest luxury group, showed me how visionary strategy and operational discipline can translate directly into how great products and great companies are built.
Strategic frameworks like Porter’s Five Forces, Value Chain Analysis, and Corporate Diversification Models aren’t just academic tools—they’re also mental models for understanding where value comes from, how to sustain it, and what levers to pull when scaling a product or portfolio.
In this project, my team and I examined how Bernard Arnault’s leadership philosophy, decentralised organisational design, and vertically integrated operations have allowed LVMH to blend craftsmanship and innovation—a balance that product managers face daily when evolving a product without compromising its core value.
“Arnault operates like a data-driven artist. He has this uncanny intuition for brand and market, but he pairs it with rigorous analysis of margins, control, and scalability.”
Much like managing a luxury maison, managing a product means:
Preserving the essence of what makes it special while adapting to changing markets
Understanding how each piece of the value chain — from design to delivery — affects the user experience
Making strategic decisions that compound over time rather than chasing short-term wins
This slide deck that we developed captures that analysis, and, more importantly, how these strategic insights mirror the systems thinking and cross-functional alignment that define great product leadership.
1. Build for Timelessness, Not Trends
LVMH’s success lies in balancing heritage with reinvention. Arnault preserves the core identity of each maison while empowering creative directors to reinterpret it for new generations. For product managers, this reflects the need to evolve products without eroding what users love most — maintaining continuity of vision through innovation.
2. Obsess Over Quality and Experience
The conglomerate vertically integrates its value chain to control every touchpoint—from materials to in-store experience. This “total ownership” mindset ensures consistency and excellence. Similarly, PMs should think end-to-end: from product design and data pipelines to user onboarding and support. Great products feel seamless because nothing is left to chance.
3. Decentralise to Innovate
Arnault’s decentralised “M-form” structure allows each brand (or product) to act like a startup under a shared strategic umbrella. This empowers creativity while maintaining alignment with group strategy—a lesson for PMs in balancing autonomy and coherence across product portfolios or teams.
4. Craft Emotional Value, Not Just Functional Utility
Luxury goods thrive on storytelling and emotional connection, not features. Arnault turned LVMH into a masterclass in narrative branding—where products represent identity and aspiration. Product managers can apply the same principle by designing experiences that mean something, not just do something.
5. Play the Long Game
Arnault’s discipline mirrors Warren Buffett’s philosophy: focus on assets that compound over decades. He invests in “star brands” with timeless demand and resists short-term gains that erode brand equity. Great PMs should also aspire to play the long game and prioritise sustainable growth, brand trust, and user loyalty over quick metrics.
6. Leverage Data, but Lead with Vision
LVMH invests heavily in digital transformation, but its technology serves the brand—not the other way around. Product strategy should follow the same framework, where data informs direction, but vision ultimately defines what makes a product meaningful and distinct.
If you’re interested in diving deeper into LVMH’s story, I highly recommend the Acquired podcast episode on LVMH: The Complete History and Strategy. Hosts Ben Gilbert and David Rosenthal deliver a masterfully researched, three-hour deep dive into Bernard Arnault’s empire-building playbook and the evolution of modern luxury.