Luxury's talent factories / Andrew Shipilov, Frederic Godart

Today most of the world's leading brands and labels belong to one of a few groups, of which the biggest by revenue is LVMH, the owner of Moet & Chandon and Louis Vuitton. A large body of research suggests that companies generate superior returns by focusing on a core line of business or competencies. Diversification generally does not add value unless there are significant cost savings and operational synergies across units. Talented people often leave good companies because they want fresh experiences elsewhere. But at Kering, LVMH, and Richemont, an ambitious luxury goods manager looking to diversify her resume need never depart the group, because many of the companies that she'd want to move to are in fact within it. The groups all have programs to encourage and support internal job moves. Of course, similar programs exist in many other industries, but a few features set the luxury groups' initiatives apart: Participants usually don't know they're in a program. 2. There is usually no preset career path. 3. The programs emphasize the history of the brands. Because of their brands' prestige and their ability to offer rich career paths, luxury groups are very attractive as employers. Luxury groups actively support educational programs that develop managerial skills specific to the industry.

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