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| Louis Vuitton Handbags featured in a London storefront |
In a surprise change at the €6 billion ($8 billion) label, brand owner LVMH Moët Hennessy Louis Vuitton SA appointed Danone executive Jordi Constans to succeed 63-year-old Yves Carcelle when he steps down at the end of 2012. Mr. Constans will spend the next year at Mr. Carcelle's side, immersing himself in the business of $1,000 handbags instead of $1 yogurts.
Mr. Carcelle had become a venerable presence for Vuitton, transforming it from a dusty trunk maker into a luxury behemoth selling products as diverse as key chains and tourbillon watches.
But the 47-year-old Mr. Constans, who has spent 21 years selling Groupe Danone SA brands such as Dannon, Actimel and Activia yogurt, is unknown in the often-cloistered fashion world.
The move has already baffled some consumers, with reader comments on the website of the French newspaper Le Figaro joking that "Louis Vuitton will sell yogurt with the LV logo!" and "What luck—I was looking for a bag to carry my four bifidus yogurts to work."
Mr. Constans is inheriting a cash cow. The label generates nearly 30% of LVMH's €20 billion in revenue. Mr. Constans's background in consumer marketing may help the brand expand its reach.
Mr. Constans who wasn't available for comment, has kept a low profile at Danone, surfacing only in the occasional news release.
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| Executive Yves Carcelle |
A Twitter account under his name hasn't published any messages.
Louis Vuitton Chief Executive Yves Carcelle has led the luxury-goods brand for 21 years.
With an operating margin that analysts estimate approaches 50%, Vuitton is also the biggest contributor to LVMH's bottom line. In addition, it regularly generates sales growth above 10%.


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