Five sustainable luxury trends extracted from the 2022 Positive Luxury Report
The 2022 Positive Luxury Report aims to uncover the industry’s most pressing topics on the climate crisis. Relevance’s head of content Joanna Lewis assesses the key takeaways that marketers should consider and embed into their marketing strategies.
Relevance on how marketing in the metaverse could prove to be a sustainable option
A year marked by glimmers of hope and growing uncertainty with the ongoing climate crisis, 2022 is a pivotal time in history for luxury brands to continue to take action to offset their carbon footprint.
The Positive Luxury 2022 Predictions Report: Decoding the Next Decade of Change promises to pave the way for luxury brands, exploring the industry’s most pressing topics that your business should be paying attention to for a better, more environmentally-friendly future.
To adapt your marketing strategies accordingly, discover the major luxury trends marketers should be aware of in this demanding and shifting sector.
International travel is not only more complicated than it was pre-pandemic, but the luxury travel industry has undergone significant change in the past year, reimagining travel as we once knew it. In fact, the latest luxury trend is a ‘fly less, stay longer’ attitude.
There have been many inadvertent benefits of the pandemic, giving ecologically sensitive destinations the opportunity to recover. Efforts include limiting visitors to Venice, while the Maldives is developing ways to make tourism more sustainable.
A luxury trend for high-end, low-impact tourism also grew, helping to protect ecosystems and surrounding communities. At South Africa’s Phinda Private Game Reserve, visitors’ fees help conserve the country’s largest population of black rhinos.
The airline industry is also working hard to reach net-zero flying by 2050, producing a 50-fold increase in green hydrogen production in the next six years.
While the travel industry has evoked new luxury trends, the effects of climate change are now in the process of eradicating one of wine connoisseurs’ best-loved grapes, Pinot Noir. As temperatures soar, harvests are happening earlier than ever before, meaning that the Burgundy terroir will not support the growth of the grapes by 2040. Italy and Spain are also witnessing their grapes ripen at an alarming rate, resulting in high-alcohol, honey-like wines.
Despite this, the staggering temperatures have resulted in the emergence of new wine regions. The luxury goods conglomerate, LVMH, recently introduced vineyards in Ao Yun, China, to create a wine that appeals to the growing luxury market in China.
Germany has also started creating Pinot Noir, while the UK is a growing producer of sparkling wines.
If consumers continue enjoying their lifestyles, luxury brands will need to adapt and look beyond the confines of their traditional geography. Likewise, it is essential consumers create a new version of the world we know, with new paradigms to enjoy.
Transparency within the fashion industry is under growing concern, with 99% of major luxury brands failing to disclose their worker’s living wages, according to July’s Fashion Transparency Index.
Transparency is critical when communicating a sustainability strategy to gain the respect of consumers. In fact, transparency must not only benefit the consumer, but it must be built into the DNA of the company and independently validated through accreditations such as the Butterfly Mark. The report states that ambitious goals such as net zero will require the support of the entire organization, even the supply chain.
The Positive Luxury report informs of significant pressure for luxury brands not to sit back and wait for legislation to be imminent, but they must prepare now and make meaningful changes to become truly ethical.
The gen Z and millennial myth
According to the luxury report, gen Z and millennials were viewed as the driving force behind conscious consumption. However, a social conscience is no longer a youthful fad but a positive luxury movement demanded by every generation.
As Felix Kreuger, associate director at Boston Consulting Group, states: “Consumers across generations will stop buying you if you are not promoting social and/or environmental sustainability.”
According to Bain & Company, the personal luxury goods industry could reach €360bn-380bn by 2025. While millennials and gen X are driving this growth – making up to 87% of the luxury market, according to Statista – it would be a mistake for brands to write off older consumers.
Luxury brands must ensure that their sustainability message resonates with multiple generations, making sure not to be too linear in one demographic.
Invest in the future
At times of crisis, new ways of thinking emerge. Luxury brands must invest in the latest digital technologies to become leading players in sustainable luxury.
Luxury brands should reconsider what growth means when endless consumption can no longer be sustained. This must be more than just repair and resale markets. Fortunately, metaverse marketing is a luxury trend that achieves double digital growth without encouraging the consumption of natural resources.
As stated in the report, the metaverse boasts little waste and high margins, as well as being an incredibly niche but profitable market.
Contact Relevance’s team of specialists for advice on navigating some of the marketing topics raised in the report.
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