Business Wars

For decades Gucci and Louis Vuitton dominated the luxury accessory markets. Their bags and shoes were status symbols, sported by celebrities and royalty around the globe. But by the 1970s both companies were struggling. Louis Vuitton was being run by the great-grandsons of the company’s founder. They were risk-averse, unwilling to make any changes. And the heirs of the founder of Gucci were fighting over the direction of the business. Maurizio Gucci, the founder’s grandson,can’t get his family on board with his vision, leaving the company stagnant. But when both companies get new leaders, these family-run companies are poised to become global mega-brands… and the two businesses are now on a collision course in their quest to become the largest luxury accessory brands in the world.

Now merged with luxury drinks company Moët Hennessy, Louis Vuitton finds itself being squeezed out, overpowered in the merger. In an attempt to regain control, Louis Vuitton’s CEO forms an alliance with Bernard Arnault, one of France’s most ambitious businessmen. Louis Vuitton hopes that Arnault will serve as an ally, but Arnault didn’t get the nickname the “Wolf in Cashmere” for nothing. Meanwhile, Maurizio Gucci finally has full control of Gucci and is desperate to rebrand the company and reclaim its exclusive image. But investors grow impatient with Maurizio’s reckless spending and irresponsible closureof revenue streams, endangering his position as CEO.

Maurizio Gucci is out, and now for the first time since its founding, Gucci isn’t being run by a Gucc.i. At the top is CEO Domenico De Sole and his right hand man is exciting young fashion designer Tom Ford. Together the two of them make Gucci the hottest fashion and accessory company in the world. Over at Louis Vuitton, Bernard Arnault wants in on the action. He hires his own young, hip designer, Marc Jacobs to oversee Louis Vuitton’s expansion into ready-to-wear clothing. But when Jacobs gets off to a rough start and Gucci’s stock drops due to an economic crisis in Asia, Arnault decides if he can’t beat Gucci, maybe it’s time to buy them.

Bernard Arnault makes his move to buy Gucci, but Domenico De Sole fights back with everything he’s got, making a surprisingly worthy adversary for the so-called Wolf in Cashmere. But in an effort to stave off Arnault’s advances, De Sole makes a deal with a devil. And both Louis Vuitton and Gucci have to deal with the aftershocks of designers who defined their brands for years departing the companies. How each brand responds to the shake-up determines the future of their success.

Gucci and Louis Vuitton are still the crème de la crème in high fashion. But between shifting consumer values, TikTok and Gen Z, these brands have a lot of work to do to keep up — if they don’t want to end up sooo last season. It’s a glamorous world in the middle of a transformation. That’s why we invited Rachel Tashjian, Fashion News Director at Harper’s Bazaar, back to Business Wars to walk us down the runway. She joined us for our season on Fast Fashion, and now she’s introducing us to the world of haute couture.