The future of luxury: How luxury brands are driving a purpose agenda
As we’re facing extreme weather events globally, there is no denying that tackling the climate crisis needs to be at the forefront of every business’s agenda
The power of brand communities
According to ‘Luxury 3.0’, a recent trends report from Highsnobiety and Boston Consulting Group (BCG), “Luxury is about belonging and identity.” The research found that over 90% of luxury consumers from younger generations are highly engaged and active in online communities. To create credibility and drive a purpose agenda, luxury businesses must tap into their close-knit communities and rally them around a specific cause to bring positive change.
A recent Kantar study found that 71% of loyalty programs fail to boost growth as they focus more on driving sales rather than building human connections. Through communities on social and digital platforms, luxury brands can break the echo chamber and connect with like-minded fans on a more personal level and communicate their sustainability mission and goals in an open and authentic way.
Purpose-driven storytelling
Storytelling is a great way for luxury brands to raise awareness for specific socio-environmental causes that are at the core of their mission and build brand loyalty as a result.
Back in 2018, luxury fashion brand Gucci launched Gucci Equilibrium, a web destination with a focus on sustainability and transparency, highlighting the brand’s commitment to bring positive change for people and the planet.
This week, Gucci has announced that it has collaborated with Sundance Institute to launch a Sundance Institute/Gucci Fund, supporting artists from around the world in the development, production and post-production of films that seek to highlight underrepresented voices.
Innovative sustainable solutions
Circularity, durability, and responsible sourcing are becoming an integral part of many luxury brands’ ethos. Within the luxury fashion industry, a great number of brands have dropped the use of animal furs and many are investing in low-emission practices and are using new sustainable materials. For instance, there's been a rise in companies using plant-based leather as an alternative to animal leather. Pioneer in sustainable fashion Stella McCartney, recently launched the world’s first-ever garments made from vegan, lab-grown Mylo™ mushroom leather.
However, there is still progress to be made. Fashion Revolution’s latest Fashion Transparency Index indicates that the 250 biggest brands still aren’t being completely transparent about their practices. In fact, 50% of major brands still disclose no information about their supply chains. Upcoming documentary SLAY, launched on free purpose-driven streaming platform WaterBear last month, unveils unethical and environmentally damaging practices in the fashion industry. The documentary exposes greenwashing claims and how the use of skins, and the estimated 2.5 billion animals killed every year in the fashion industry, is contributing to deforestation, water contamination, and modern-day slavery. The documentary features brands that are making a difference in the industry including Stella McCartney, Ecopel, and Save the Duck.
Although there are many tools to measure fashion’s environmental footprint, there aren’t any for gauging the social impact of a brand throughout the entire supply chain. To address this, Chloé, the first luxury company to become a B Corp, has launched the first social impact tool with the hopes that it can be adopted across the fashion industry. The tool has been designed to help a brand measure social impact and guide its decision-making process.
Ultimately, Ultra High Net Worth Individuals (UHNWI) expect brands to become catalysts for change and luxury businesses now see their own societal and environmental activism as non-negotiable to meet the demands of their consumers.