Benefits of being part of a luxury talent factory
Less than a century ago, luxury brands were the forte of entrepreneurial designers and family enterprises. The tide has changed, and now groups own the leading luxury brands in the world, the biggest by revenue are LVMH, owner of Moet & Chandon, and Louis Vuitton. However, these groups run contrary to the management orthodoxy, and there is growing research to show that companies get better returns when they focus on a core line of business. Diversification hardly adds any value unless there are significant cost-cutting measures as well as synergies across the different factions, which is not a common occurrence with luxury brands.
Brands Owned by Luxury Talent Factories
In a study of over 350 fashion houses producing successful and creative fashion collection, they profit from being part of such luxury talent factories. You might not have heard about luxury talent factories, but the luxury brands are infamous. Here are the top 3 luxury talents factories and the luxury brands under them ranging from fashion, wines, watches, perfumes, just to name a few:
Givenchy, Fendi, Emilio Pucci, Cape Mentelle, Kenzo Perfumes, Benefit Cometics, Ardbeg, Cloudy Bay, Louis Vuitton, Moet & Chandon, Nicholas Kirkwood, Parfums Christian Dior, Zenith, Hublot, Les Echos, Le Bon Marche, and more.
Gucci, Alexander McQueen, Puma, Bottega Veneta, Yves Saint Laurent, Boucheron, Volcom, Brioni, Girard-Perregaux, Dodo, Christopher Kane, Ulysse Nardin.
Lancel, Cartier, Jaeger-LeCoultre, A. Langer & Sohne, Dunhill, Azzedine Alaia, Montblanc, Shanghai Tang, Van Cleef & Arpels, Roger Dubuis, Piaget, Officine Panerai, and more.
Reaping From Luxury Talent Factories
Despite the leave from management orthodoxy, being part of a luxury talent factory has several cost-saving benefits, which means that the brands get more profit and exposure. The luxury brands also benefit from centralized support functions through aid in the form of finance, real estate management, operations, and logistics. There is also the advantage of an efficient internal market for capital available for brands showing much promise.
The brands under the luxury talent factories also excel in business and design innovation by receiving learning and networking opportunities for the creative teams and management. The luxury talent factories have a vibrant circulation of talent from the individual brands in the group, and this allows them to spread best practices and knowledge, this is despite the rivalry shown by the brands.
Access to Mobility in Various Categories
At the talent factories, ambitious talent within the groups never leave the group, since the only other company that he or she can work in is at one of the rival brands in the group. Statistics show that people already in the luxury talent factories fill at least two-thirds of management vacancies.
By staying put within the groups, employees with high potential can stay in touch as well as benefit from the networks they have made over the years. Concisely, luxury talents factories are grooming their potential employees, and it is the reason they remain at the top of the industry.