2020 has been a turning point for the luxury industry in terms of its impact on the environment. This year, brands have focused on communication, innovation, and strategy to implement green initiatives and address sustainability concerns.
One noticeable change is the increased need for luxury brands to communicate their sustainability efforts. Brands now make a conscious effort to explain their initiatives to the public. For example, LVMH unveiled its new LIFE 360 program during its Climate Week in December 2020. The group has made replays from the week accessible to everyone, and they have utilized social media posts featuring designers to demonstrate their commitment to sharing their sustainability goals with the community.
Kering, on the other hand, announced its partnership with The Explorers, an organization that aims to reveal the beauty and fragility of our planet, during the summer. This collaboration allows Kering to leverage photography as a means to promote environmental causes. These examples demonstrate how luxury brands are incorporating sustainability into their corporate social responsibility (CSR) policies and integrating the protection of nature into their brand DNA.
Furthermore, talking about ecology has become desirable and has gained traction among consumers, particularly the eco-conscious generation. Sustainability has become an important buying criterion, and brands have capitalized on this by incorporating environmentally focused communication strategies into their marketing efforts. Chanel has emphasized its sustainable obligations, Hermès has taken the role of a patron of sustainable development and ecological transition, and Burberry has introduced green labeling that informs consumers about the environmental impact of their products. Gucci has gone a step further by creating a dedicated platform, Gucci Equilibrium, to showcase its CSR commitments.
In addition to communication, the luxury industry has seen a boom in online second-hand platforms for sustainable luxury. Net-A-Porter, The RealReal, Vestiaire Collective, and Cresus are among the platforms that continue to flourish. The second-hand market is expected to grow at a rate of 12% per year, in contrast to the overall luxury market’s growth rate of 3%, according to a study by The Boston Consulting Group in collaboration with Vestiaire Collective. This presents new opportunities for luxury brands to attract new customers and capture the attention of Millennials and Gen Z consumers. Brands like J.M Weston, Stella McCartney, and Gucci have already recognized the importance of the resale market and have taken steps to incorporate it into their business models.
Luxury brands are also innovating in terms of materials and raw materials, drawing inspiration from nature. Upcycling, as seen in collections by Miu Miu, Jean-Paul Gaultier, and JW Anderson, is on the rise. Luxury players collaborate with research and development companies specializing in textiles to pioneer the materials of the future. For example, Kering and Stella McCartney have partnered with Bolt Threads to develop Mylo, an alternative to leather made from mushrooms. Other innovative materials include pineapple skins, grape waste, oyster shells, and recycled materials transformed into high-performing fabrics. Natural dyes, recycled gold, and lab-grown diamonds are also gaining popularity.
Furthermore, luxury brands are not only considering the material of the product but also its packaging. Brands like Ruinart, Gucci, and Breitling have introduced eco-friendly packaging options. This includes using recyclable paper skin, packaging made from recycled PET plastic, and rethinking the shape of boxes and packages to reduce wasted space and limit the carbon footprint during transportation.
Although the fashion industry still has a long way to go in terms of sustainability, 2020 has seen significant progress in green initiatives by luxury brands. As we enter a new decade, it is crucial for these sustainable goals to be seen not only as a must-have but as a must-be for the industry.
Useful links:
– [LVMH LIFE 360 Program]()
– [The Boston Consulting Group and Vestiaire Collective Study on second-hand market]()
