The family that controls Chanel: 3 generations of fashion tycoons, top 7 richest in the world but hidden

Alain Wertheimer (75 years old) and his younger brother Gérard (73 years old) may not be familiar names in the media, but these two private businessmen are the 4th and 5th richest people in France, respectively, in the top The 7 richest families in the world.

The first brick to help build the Wertheimer family's fortune was in the 1920s. At that time, Pierre Wertheimer (Alain and Gérard's grandfather) sponsored an emerging fashion designer - Gabrielle "Coco" Chanel.

Alliance with designer Coco Chanel

In 1924, fashion designer Coco Chanel signed an agreement with Pierre Wertheimer to establish a company called Parfums Chanel. At that time, Mr. Pierre was the director of Bourjois cosmetics company.

Coco Chanel believes that it is time to expand the sale of Chanel No.5 perfume, helping to reach more customers. Since its launch in 1921, this perfume bottle has been a product exclusively for the brand's potential customers.

Realizing that Pierre Wertheimer had commercial expertise, understanding of the US market and capital, Coco Chanel believed that the handshake would help expand products.

For his 70% stake in the company, Pierre Wertheimer financed the production, marketing and distribution of Chanel No.5. The next 20% belongs to Théophile Bader - founder of Galeries Lafayette in Paris (France), who is credited with connecting Pierre Wertheimer with Coco Chanel.

Coco Chanel only has 10% remaining, so except for using her name on products, this designer has very little right to interfere with business-related activities.

Dissatisfied with this arrangement, Coco Chanel spent years gaining full control of "Parfums Chanel". In 1935, she initiated a lawsuit against the Wertheimers but was unsuccessful.

Today, however, Chanel's perfumes and fashions are available worldwide and are one of the most recognizable brands.

Rise from the ashes

Pierre died in 1965 and control of the company passed to his son, Jacques. When Coco Chanel died in 1971, her family bought her shares in the company. In 1973, at the age of 25, Jacques' son Alain persuaded the board of directors to take his father's place. Alain became president of Chanel, and his younger brother Gérard headed the watch department.

At that time, Chanel was a gradually exhausted brand, with only perfume brands sold at pharmacies and official stores remaining. Alain immediately reformed by expanding the ready-to-wear segment, reestablishing market share to lead the high-end perfume sector.

His most important decision was convincing German designer Karl Lagerfeld to become the brand's creative director.

At the time, Karl Lagerfeld said: "When I joined Chanel, it was a 'sleeping beauty', not even a beauty. It was tiring. So my job was to revive dead woman".

Alain, who is known as a "marketing genius", knew how to make the most of Karl Lagerfeld's creations to create a high fashion image. From then on, Chanel became famous in both the upper class and the whole world.

Karl Lagerfeld was also called "the most talented designer of the 20th and 21st centuries" by The New York Times. He spent three decades overseeing design for Chanel and saved the brand from financial collapse.

Today, Alain and Gérard continue to run Chanel. The brothers have worked for the fashion house for 43 years and are the third generation of the Wertheimer family to run the more than 100-year-old company. The New York Times once described the brothers as "fashion's most silent billionaires".

The secret to "hiding" despite owning huge assets

The French have a saying: "If we want to live happily, we live in hiding." And caution is one of the Wertheimer brothers' mottos. While older brother Alain lives in New York City (USA), younger brother Gérard lives in Geneva, Switzerland.

Even as the fashion house regained its prominent position in the fashion world and the Wertheimer family's fortune grew, the billionaire family still maintained a discreet and shy attitude in front of the media.

If they attend the brand's fashion show, the Wertheimer brothers will drive to the location themselves. Then they sit in the 3rd or 4th row, instead of the power front row.

They never attend Chanel events or publicly comment on their business. Before 2018, the brand had never even released sales numbers, leaving the industry with only estimates of the brand's value.

It wasn't until mid-2018 that they announced their first financial report in 108 years. They said that 2017's revenue amounted to 9.62 billion USD.

Alain and Gérard Wertheimer have not announced publicly who will take over Chanel and whether in the future the brand will still be under family control. Both brothers are married, Alain has 3 children and Gérard has 2.

They also inherited Wertheimer et Frère, the family's horse breeding and racing business. The Wertheimer family's hobbies are shooting at a castle in France's Loire Valley, or skiing at a chalet in the Swiss Alps.

As of 2002, the brothers owned 8 houses around the world. It's not surprising that those villas contain unique works of art, but they do not lend or take photos of any works.

According to Bloomberg, the two brothers also have a 1% stake in Ulta Beauty, a cosmetics store chain worth $24 billion.

Pham Nhat Anh Quan: Pham Nhat Vuong's son shows up for the first time, takes on great responsibility, and his private life is intriguing Minh Lợi13:46:33 20/12/2023Information and images of Pham Nhat Vuong's son - Pham Nhat Anh Quan were recently mentioned in the press, attracting a lot of attention when officially revealed as Deputy General Director of VinFast Production Division.