ESCP Europe

Langue

English

Publication year

01/12/2013

While the term ‘luxury’ was originally often associated with a lifestyle of excess, indulgence and waste—quite different from, and in some ways antithetical to the concept of sustainability—a paradigm shift is currently taking place in the domain of luxury. Reasoning that consumers in all social classes are increasingly concerned about social and environmental issues and prefer ethical and green products that reflect their own values and beliefs, the concept of sustainability has to become a priority for luxury brands as well. However, existing studies give evidence to believe that the luxury industry is perceived by experts and consumers to lag behind other industries in terms of sustainable commitment. Nevertheless, the essence of luxury brands that is traditionally based on high quality, superior durability, and deeper value is a perfect basis for the design and marketing of products that preserve fundamental social and environmental values. Based on existing theoretical and empirical insights, the aim of our paper is to provide a comprehensive framework of luxury sustainability values. Our differentiated model of financial, functional, individual and social sustainability value might be a useful instrument for both academics and managers as a basis to successfully create, market and monitor luxury brands that represent social and environmental excellence.