But, traditional approaches to improving a company’s ethical positioning may not work well for luxury brands.
An Accenture study found 62% of consumers find brands with high ethical values attractive. But, people often see luxury goods as wasteful self-indulgence and potentially damaging to the environment, especially if the products are highly decorated or engineered. Traditional approaches – like corporate social responsibility (CSR) activities – are also met with customer scepticism.
Luxury brands should add the human touch and organise experiential events to connect with people and establish themselves as sustainable businesses. For instance, French luxury brand Hermès organises a public event every year where its artisans handcraft unique pieces in real-time in front of visitors, explaining their way of work and answering visitors’ questions.
To win a reputation for ethics, luxury brands need to think beyond greenwashing their products and communicate the passion and commitment of their people to the art. They should also add modern flavours to their products along with continuing with the legacy. Further, provide support and show dedication for the growth of the artistic community.
[9 minute read]