VC-1994

Bernard Arnault entering room, shakes hands with female interviewer. Getting situated for interview, sitting at a bar and making casual conversation.

Arnault talks about how he went from "construction and diapers" to couture. He talks about seizing opportunities and how in 1984 he purchased the largest French company which was riddled with problems. He seized the risky opportunity and turned it around. and concentrated on turning it into the largest luxury conglomerate in the world.

Arnault talks about his management style especially in light that he had to let go thousands of employees. He states the textile company he purchased in 1984 had old equipment and losing money. He decided to put in new more efficient equipment and in doing that, he was unfortunately forced to reduce the employment force. He states that in managing companies of this size there's only one way to do it, simply, to attract the best people and the best managers. He must balance the brands and the people.

Arnault addresses the issue of France's overall feeling about him - his aggressiveness - in France his type of aggressiveness and business style is a difficult factor for people to accept. He states he feels that because France is a smaller country, this has more impact and is a rather new phenomenon. He also states he is not the only one but that this has raised some question and some people are maybe not used to that, but that is all. He feels he's bringing France out of the 'dark ages'.

Interviewer asks Arnault to describe how he is bringing a new kind of business to France.
Arnault describes that what he is doing different (and points out this style is not unique to him, but also other French entrepreneurs). He states they try to be 'capitalists' and to have large parts of the shares in the companies they're managing. In doing so, they are able to provide safe shareholding to the companies thus giving them more stability. He describes how businesses in France were run by people coming from prestigious schools but they weren't involved in the shareholding of the companies. Things have changed in the last five years in France, now managers are shareholders and can make faster, long term decisions.

Interviewer states Arnault is a simple person but surrounds himself in luxury - she asks if that's "bizaree" to him.
Arnault disagrees and states its important due to the companies he is running, to have luxury in the showrooms and the runways. But it's very important that "behind the curtains" you are doing business and there you have to be cost conscience, having no luxury. Personally, Arnault feels he lives a normal life, he is a normal person.