LVMH names Frederic Arnault CEO of Tag Heuer as Swiss luxury-watch maker seeks to reinvent itself

LVMH says Frederic Arnault, one of the younger sons of the luxury goods group's billionaire boss, will take over running watch brand Tag Heuer, joining his siblings in taking on bigger roles within the conglomerate.

The Arnault family controls just under half of LVMH, which has vastly expanded through acquisitions under CEO Bernard Arnault, France's richest man, and owns fashion labels such as Louis Vuitton and also champagne and jewellery brands.

Frederic Arnault, 25, will step up at Tag Heuer as of July 1, the company says. He had previously worked at the label, but with a focus on developing its digital activities, at a time when watch brands are struggling to reinvent themselves for a younger clientele and face falling demand.

Four of Bernard Arnault's five children now occupy senior positions within the group, including at Vuitton and at luggage maker Rimowa, the German luggage brand helmed by CEO Alexandre Arnault.

LVMH also said in a statement that Stephane Bianchi, who oversees all watch brands, would expand his remit to take the helm of jewellery brands too, with the exception of Bulgari. Other brands include Chaumet.

LVMH last year agreed to buy US jeweller Tiffany for US$16.2 billion (S$22 billion), vastly expanding its footprint in one of the fastest-growing segments of the luxury market.

Retailers have since been hit hard by the coronavirus crisis, however, and sources have said LVMH is now exploring options to try to lower the purchase price.