Delphine Arnault has been appointed to run Christian Dior.
The 47-year-old businesswoman - who is set to leave her position as the executive vice-president of Louis Vuitton - is the eldest daughter of Bernard Arnault, the founder and CEO of LVMH Moet Hennessy, the world's largest luxury goods company.
Arnault said: "Under Delphine’s leadership, the desirability of Louis Vuitton products advanced significantly, enabling the brand to regularly set new sales records.
"Her keen insights and incomparable experience will be decisive assets in driving the ongoing development of Christian Dior."
Dior is the second-biggest brand in Arnault's luxury goods empire, which has recently seen him become the world's richest person.
Arnault, 73, has also confirmed that Pietro Beccari - the outgoing head of Dior - will replace Michael Burke as the CEO of Louis Vuitton.
Thomas Chauvet, an analyst at Citi, said: "Succession planning in strategic roles has been instrumental to the success of LVMH's key brands over the past 20 years, hence today's moves are significant."
Arnault's other children - Antoine, 45, Alexandre, 30, Frederic, 28, and Jean, 25 - all hold other positions within the billionaire's business empire.
Meanwhile, Delphine previously predicted that a new wave of creativity would follow the COVID-19 pandemic.
She explained: "After the moment of a pandemic, or a war, or other difficult moments, creativity always comes in high. I’m very interested to see what’s going to come after this and how artists are going to relate to it in their work.
"Look at Christian Dior: he created his brand and the New Look in 1947, just after World War Two. There are always a lot of creative things happening after very difficult moments."