The Relevance of Sustainability in Luxury from the Millennials’ Point of View

Abstract

Over the past decades, aggravating environmental and social conditions on planet earth, partially caused by economic prosperity and correlating factors, have urged people to think about sustainability in all its facets and act accordingly. Companies, as a vital part of the economy, are pressured by legislative requirements and changing consumer needs. This shift in consumer behaviour is mainly embodied by the millennial generation who purchase more consciously and care more about ethical and environmental aspects than previous generations. Scholars previously studied the impact of Corporate Social Responsibility (CSR) on luxury firms and their image. However, the analysis of the millennials’ point of view in this regard is still an uncared field of research. This gap is addressed by the following study. Luxury products are predestined to pioneer regarding sustainability based on their durability, quality excellence, and emotional value. Thus, the luxury goods industry cannot escape this development and thus must react. This paper investigates, by means of a focus group interview with millennials, in which respect the image of luxury firms from the millennial generation’s point of view is influenced by sustainability efforts. The paper concludes that millennials have manifold and ambivalent associations with sustainability and luxury, that apportioned synergies between sustainability and luxury are hardly captured by millennials, and that millennials discuss the matter differently based on their perspective.