Luxury and sustainable development – © Marie Mubiala
Luxury today is in a new era of commitment. In fact, consumers’ purchasing priorities have changed significantly under the impetus of “millenials” and their attraction to subjects related to sustainable development.
The development of new information and communication technologies have made these new consumers more attentive in the way they obtain information and buy products or services. Luxury has finally become a market in which excellence must be reflected across the entire value chain.
More than green, the color of the marks must be transparency
There is now a real obligation of transparency among companies, demanded by consumers. They want to be inspired and are in search of history. However, these stories must be intrinsic to the products and the life of the companies.
We are therefore moving from an era marked by storytelling to an era where companies must implement “storyproving” in order to perpetuate the emotional link with consumers, who no longer seek only beauty and rarity that one could seek at the time in the luxury. Indeed, they are no longer satisfied with appearances and speeches, but expect concrete actions.
This revealing universe of social inequalities must now be ethical in terms of its CSR (Corporate Social Responsibility) and consumers are less and less ready to accept errors and “roughly”.
According to a study by the Boston Consulting Group, 60% of luxury consumers are more inclined towards committed brands, and 56% declare that they are aware of the CSR policies of the brands of which they are customers. In addition, the study revealed that the three subjects that concern buyers are respect for the environment, animal welfare and an ethical manufacturing method.
Transparency for luxury brands is less questionable these days, as information is accessible anywhere, anytime via the internet. In addition, customers have the means to react on social networks to the slightest action by brands, whether positive or negative.
The paradox between luxury and sustainable development
Qualitative factors related to sustainable development and business ethics have taken an important place in consumers’ purchasing decisions. Luxury brands can therefore no longer do without a sustainable development strategy. The fact of freeing oneself from these axes could be fatal for the latter, causing a potential deterioration of their image and their sales. Moreover, according to Cécile Lonchard, in an article in Le Parisien “50% of brands that do not include sustainable development in their charter are doomed to disappear in the next few years”.
Despite this, luxury and more specifically the textile industry and sustainable development sound like a real paradox. Rousseau already underlined at 18th century that “luxury is diametrically opposed to good morals”. And when we know that this industry is the source of 10% of the planet’s greenhouse gas emissions, which is more than the carbon footprint of international flights and maritime transport combined and the production of jeans require, for example, the use of approximately 7500 liters of water, these facts are ringing the alarm bells for many market players. And this raises a real reflection on the compatibility of this market with sustainable development.
Modern luxury means being socially responsible
In addition to the strong consumer enthusiasm for vegan consumption, companies tend more and more to opt for the use of sustainable materials through materials made with new fibers, such as artificial silk fiber. orange, in pineapple leather, in salmon skin, made from animal cells, or thanks to the use of recycled buttons for the Vivienne Westwood brand, for example.
New players who put sustainable development at the heart of their strategy could transform the luxury market, and large groups such as LVMH, Kering, etc. also get into it. Indeed, competition is now also played out in the vision of sustainable development that each brand or group has.
In 2019, the Boston Consulting Group published the results of its annual “True Luxury global consumer insight” study on the analysis of trends in the luxury market, in order to identify the levers for development by 2025.
Three consumer trends emerge from this study, the first being the growing trend for more responsible luxury, with 45% of premium buyers becoming buyers of second-hand items. This high-potential market, partly driven by the ecological enthusiasm of consumers, makes it possible to considerably reduce their carbon footprint and also promote a kind of recycling.
The second trend is “the assault on the luxury sector” by the generation of millennials, whose interest is particularly focused on CSR values. And these will represent 50% of consumers in this market by 2050.
The third trend is consumer interest in capsule collections. Indeed, consumers have a strong interest in exclusive products. 46% of subjects questioned in the Boston Consulting Group study favor the purchase of exclusive products, which is explained by the growing desire of consumers to individualize and therefore to wear coins that reflect their value.
Solutions ?![Luxury and sustainable development / Burberry - © Marie Mubiala]()
At the corporate level, the trends are simple. In the foreground is the preservation of natural resources, as mentioned above, through the use of new materials or substitutes. For example, the Stella McCartney brand, a precursor of responsible luxury, for fifteen years now has refused leather and fur in favor of biomaterials.
In the background, is recycling, acclaimed by actors such as Yves Saint-Laurent with his “New vintage” collection in 2009, for example, created from recycled fabrics. Burberry, which was pinned for burning its unsold items, has also signed a partnership with Elvis & Kresse to recycle its leather scraps.
We can therefore observe and conclude that trends in the luxury market, under the influence of millennials, have pushed many luxury houses to shake up their habits and opt for more sustainable and ethical luxury.
From the same author :
Digital and luxury, the meeting of extremes?
Les Allumés, when the light is worth the candle
Photo credit: © Marie Mubiala