Introduction What is striking is the similarity between the two. I can say that sustainability and luxury are similar to bedfellows. Sadly, this would be somewhat naive. Luxury is constantly on move as said by many economists (Kapferer 2008, p. 96). Sustainable fashion with its luxury indicates living harmoniously with mother earth; it is employing trained artisum in safe and humane working conditions. Luxury products are often considered to have larger environmental footprints than their peers.
There is an area where sustainability now encourages the luxury dream itself. (Exploria Art of Travel) Nature that is unspoiled is rare today, a chain of hotels emerged where the dream is sustainability like Explora in chille with resorts in Atacama and other places, and these are fully positive energy buildings, with no litter. An organic bacterium is used to destroy everything and food is produced through organic farming by native farmers and so on. Sustainability luxury now Luxury brands are now-a-days interested to turn over a new leaf.
Many firms are repositioning to compete with others in their field through environmental and social responsibility as a point of differentiation when competing for the share of consumer wallet which is very tight in economic downturn. (Lakshmi Prasanna 2013, pers. Comm. , 18 Feb. ), Luxury has now passed into masses rather than a cream layer. Sustainability luxury have been Luxury brands have been bought by only those who had money, taste and power. Some products play a role of status symbols and simply they are perceived by public.
There is no necessary that these are better than their less expensive products, are bought with main reason of displaying wealth. (Inconspicuous consumption, 2008) These types of products are objects of socio-economic phenomenon called conspicuous consumption. Sustainability luxury can be or ought to be Luxury brands usually set their own standards. Very high gross margins are achieved by Luxury brands and they relay strongly on their reputation, because reputation gives strength to the brand (Tabatoni et al, 2010).
People are purchasing luxury goods and are promoting new era of market innovation around sustainability. Every category of good available in the market today includes similar products whose luxury is marked by better quality components and materials. Focus The focus of this article is to analyze relationship of luxury and sustainability. It’s important to see how today’s young consumers, so conscious of green values do, balance their continual need for ever-newer fashion with their presumed commitment to environmental sustainability The image1 above you can see European business review 2013.
Market demand Luxury brand is very visible sector; public attention is wholly linked to its high profile customers, VIP’s and celebrities. For many years the luxury goods market has been on an upward climb. The industry had a setback in 1997 called the Asian Financial Crisis, In 2000 the industry has performed well, the luxury products market in the world – which includes drinks, fashion, cosmetics, fragrances, watches, jewelry, luggage, handbags – was worth close to $170 billion and grew 7. 9 percent. Only (-0. 9 percent) decline was suffered by this sector, which was the lowest (Okonkwo, 2007 pg.145).
(Epsten & roy 2003) Today sustainability is regarded as virtually important business perceptive by multiple people such as investors, stake holders, customers and policy makers. Horizons of sustainability: Raising awareness In regard with sustainability the company’s are taking much regard in making changes that support the term sustainability, the more the changes are made they will tend to become part of the company’s identity and mix up into their overall strategy, leading not only to greater sustainability but also greater trust from consumer’s.
By remaking the fundamental values of luxury, sustainability can help to clearly check its difference versus more common premium brands. At a time when sustainability is still not well understood or accepted by many people, the influence exerted by luxury brands could play a key role in raising both awareness and also helping to drive behavioral change in consumers. First input must come, not from consumers, but from pioneering brands (Leslie). Brands that will- Encourage reparability and long life of product Promote principle of buy less and pay more.
Dematerialize and reinvent luxury experience. Promote respect for appropriate compensation of craftsmanship. Serve as sustainable trend setter. In order to create demand brands should make their image by raising awareness among consumers. In terms of awareness rising, consumer education and behavior change campaigns, major role can be played by celebrities but there also range of other possibilities including traditional and social media which can be interesting, fun and relevant to the audience of all groups. Another event of the luxury market is “Luxury Shopping Avenues”.
Certain thoroughfares like Melbourne’s Collins Street, Singapore’s Orchard Road, Amsterdam’s P. C. Hooftstraat Athens, Chicago’s Magnificent Mile, Paris’ Champs-Elysees, Avenue Montaigne (Wikipedia) area are some places where most luxury brands tend to be concentrated. These are managed by large companies which concentrate luxury goods stores. Positive behavior of buyer: schemes For retailers, the challenge is always to attract customers to their spot as there are many alternatives for customers and help them to understand the benefit in making sustainable choice.
Some use incentive schemes which help to keep customers loyal by rewarding them with points that can be spent on virtual markets/ websites. And customer loyalty and willing to pay price premium is particularly important for new ethical brands that are looking to grow. It’s said retaining old customer is better than finding new customers as finding one costs double then retaining the old one.
Barriers Luxury is based on object rarity or can be also said as scarcity. . (J. N.Sheth et al, 2010) High prices limit demand for these products and are the best way to protect future of these resources. Sustainable luxury goods- Do not directly focus on customers. Do not recognize emerging threat from rising global over-consumption. The approach is not holistic. Conclusion Sustainable luxury goods have long standing concern for quality and craft. Blendell and Kleanthous (2007) The choice of consumer to pursue the luxury is linked to the brand’s stance on important social issues, such as saving the planet.
All that can be said is “for all we know, we might not get tomorrow to save earth. ” There are some brands showing how luxury fashion can successfully achieve and market sustainability and ethics. As a consumer myself, I would want to show that I not only enjoy good quality of the good but that I also care for environment and I hope most of consumers think alike. References Exploria Art Travel, 8 April 2014, www. exploria. com/sustainability Jagdish N
Seth, Nirmala K Sethia, Shanthi Srinivas, 2010 “Mindful Consumption: A Customer Centric Approach To Sustainability” Academy of Marketing Science, US Kapferer, Jean-Noel, 2008 “The New Strategic Brand Management” 4th ed. Kapferer, Jean-Noel, 2013 “The European Business Review” www. europeanbusinessreview. com/? p=2869 Okonkwo, uche, 2007 “Luxury fashion branding: Trends, Tactics and Techniques” Tabatoni, O Kapferer,J-N, 2010 “Are Luxury Brands Really A Financial Dream?
” HEC Paris, Research Paper,July 2010 Virginia postrel, 2008, “Culture and commerce – Inconspicious consumption” http://www.theatlantic. com/magazine/archive/2008/07/inconspicuous-consumption/306845/ Leslie pascaud, Director sustainable marketing and innovation practice, viewed 8 April 2014 www. addedvalue. com Partridge, D. J. 2011 “Activist capitalism and supply chin citizenship: producing ethical regimes and ready to wear cloths” current 52 (s3).
Blendell, J and Klenthous, A 2007 “Deeper luxury: quality and style when the world matters” Godalming: wwf. uk Ceri Heat Cote- “The ethical fashion”, 17 sept 2012 http://source. ethicalfashionforum. com/article/marketing-sustainability-for-the-luxury-fashion-sector- Wikipedia.