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Luxury, Sustainability, and “Made In”

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Sustainable Luxury Brands

Part of the book series: Palgrave Advances in Luxury ((PAAL))

Abstract

The relationship between the luxury industry and the sustainability movement is quite complex. On the surface, the values associated with luxury and those promoted as sustainable are widely seen as antithetical (e.g., Beckham and Voyer 2014; Strong 1997; Torelli et al. 2012). Luxury is associated with excess, hedonism, superficiality, and ostentation, while sustainability evokes altruism, sobriety, restraint, and morality (Carrier and Luetchford 2012; Widloecher 2010). Economically, the luxury industry seeks maximum gross margins and, as a result, luxury providers do not emphasize cost reduction, but rather they focus on value creation, with the aim of making the buyer feel like a celebrity. This focus on quality over costs is maintained along the entire value chain, beginning with the selection of high-end production materials and continuing through the phases of production, selling, servicing, and branding. In contrast, sustainable development focuses on values such as parsimony, moderate consumption, and equality, which privilege economy over high quality.

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Notes

  1. 1.

    http://r.lvmh-static.com/uploads/2015/05/lvmh_environnment2014en.pdf

  2. 2.

    In 1983, Brundtland was invited by then UN Secretary-General Javier Pérez de Cuéllar to establish and chair the World Commission on Environment and Development (WCED), widely referred to as the Brundtland Commission.

  3. 3.

    http://www.un-documents.net/ocf-cf.htm

  4. 4.

    Source: Interview with Marie-Claire Daveu, Chief Sustainability Officer and Head of International Institutional Affairs of Kering, 2016.

  5. 5.

    Azimut|Benetti is the world’s largest private group in the yachting sector. The majority shareholder is the founder, Paolo Vitelli, who has been firmly in command for more than 40 years (source: http://www.azimutbenetti.it/the-group-in-brief.html).

  6. 6.

    Source: Interview with Giovanna Vitelli, member of the Board of Azimut|Benetti Group, 2016.

  7. 7.

    http://www.kering.com/sites/default/files/document/kering_group_2014_environmentalpl.pdf

  8. 8.

    http://www.kering.com/en/sustainability/achievements/stella_mccartney_bags_made_in_kenya

  9. 9.

    http://www.kering.com/en/sustainability/achievements/guccis_sustainable_products

  10. 10.

    http://www.lvmh.com/group/lvmh-commitments/environment/

  11. 11.

    Programme for the Endorsement of Forest Certification (PEFC) is a not-for-profit organization focused on promoting sustainable forest management.

  12. 12.

    http://www.wwf.org.uk/deeperluxury/_downloads/Press_Release_Deeper_Luxury_261107.pdf

  13. 13.

    http://www.bsr.org/en/collaboration/groups/sustainable-luxury-working-group

  14. 14.

    http://www.economist.com/node/14301663

  15. 15.

    The RobecoSAM Indices is a business unit of RobecoSAM, an investment company specialized on sustainability investments.

  16. 16.

    http://www.sustainability-indices.com/sustainability-assessment/corporate-sustainability.jsp

  17. 17.

    https://secure.peta.org/site/Advocacy?cmd=display&page=UserAction&id=3959

  18. 18.

    “Toxic Threads.” Greenpeace, November 2012

  19. 19.

    http://www.vogue.co.uk/news/2015/09/02/sergio-rossi-green-carpet-collection---eco-age-livia-firth

  20. 20.

    Eco-Age is a brand consultancy that helps businesses grow by creating, implementing, and communicating bespoke sustainability solutions (www.eco-age.com).

  21. 21.

    http://www.kering.com/en/press-releases/luxury_goods_international_attains_the_highest_level_platinum_of_leed_certification

  22. 22.

    http://www.responsiblejewellery.com/

  23. 23.

    http://investor.brunellocucinelli.com/yep-content/media/BC_Analyst_Presentation_9M_15.pdf

  24. 24.

    Source: Interview with Brunello Cucinelli, Chairman and CEO of the Brunello Cucinelli S.p.A., 2016.

  25. 25.

    http://www.marriott.com/corporate-social-responsibility/corporate-values.mi

  26. 26.

    https://ae2cce27b9c47819bf91cd0d74945e06887cd215.googledrive.com/host/0B4SXdA_U5I_kNTY2WnNiNy14al

  27. 27.

    https://www.lvmh.it/investors/profile/governance-sri/

  28. 28.

    Source: Interview with Brunello Cucinelli, Chairman and CEO of the Brunello Cucinelli S.p.A., 2016

  29. 29.

    Source: Interview with Giovanna Vitelli, member of the Board of Azimut|Benetti Group, 2016.

  30. 30.

    Source: Interview with Marie-Claire Daveu, Chief Sustainability Officer and Head of International Institutional Affairs of Kering, 2016.

  31. 31.

    http://www.theguardian.com/business/2006/dec/10/retail.theobserver

  32. 32.

    http://www.vogue.co.uk/news/2015/11/02/burberry-christmas-2015-campaign-billy-elliot-julie-walters-romeo-beckham-elton-john/gallery/1514521

  33. 33.

    http://www.ilsole24ore.com/art/commenti-e-idee/2014-08-27/se-made-italy-fosse-brand-sarebbe-terzo-mondo-063909.shtml?uuid=ABdARknB

  34. 34.

    https://www.kpmg.com/IT/it/IssuesAndInsights/Events/Documents/KPMGFrancoMasera.pdf

  35. 35.

    http://www.confindustriaixi.it/it/news/_madeinitaly.html

  36. 36.

    http://www.luxurydaily.com/prada-showcases-csr-campaigns-on-new-microsite/

  37. 37.

    http://www.pradagroup.com/en/group/social-responsibility

  38. 38.

    http://www.csrwire.com/blog/posts/250-2011-in-retrospect-what-luxury-brands-teach-us-about-sustainability

  39. 39.

    http://knowledge.wharton.upenn.edu/article/tiffany-co-a-case-study-in-diamonds-and-social-responsibility/

  40. 40.

    http://press.tiffany.com/News/NewsItem.aspx?id=53

  41. 41.

    http://press.tiffany.com/News/NewsItem.aspx?id=154

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Authors and Affiliations

  1. University of Bari, Bari, Italy

    Cesare Amatulli

  2. LUISS University, Rome, Italy

    Michele Costabile

  3. LUISS University, Rome, Italy

    Matteo De Angelis

  4. University of Salento, Lecce, Italy

    Gianluigi Guido

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  1. Cesare Amatulli
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Amatulli, C., Costabile, M., De Angelis, M., Guido, G. (2017). Luxury, Sustainability, and “Made In”. In: Sustainable Luxury Brands. Palgrave Advances in Luxury. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-60159-9_3

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