conducting an expression of resistance as an end point.2 2 SRR: Socially responsible resistance.
3 3 Available at: https://www.jeuneafrique.com/737259/economie/danone-des-resultats-annuels-enberne-au-maroc-en-raison-du-boycott-de-2018/.
4 4 The Buzz Indicator (BI) refers to the degree of involvement of the community members with a given topic, suggested by the breadth of participation around it (likes, comments and shares). In order to be selected, the BI must be higher than the average of the BIs for a “t” period (from the 1st to the 30th of each month).
5 5 Individuals who are part of a social group consciously and deliberately opposed to a dominant culture through individual or collective actions of varyling levels of visibility.
6 6 Available at: www.recup.net, “Providing a space for getting rid”.
2
Luxury and Sustainable Development: Companies and the Challenge of Overcoming Consumer Reluctance
Mohamed Akli ACHABOU1 and Sihem DEKHILI2
1 IPAG Business School, Paris, France
2 CNRS – BETA, University of Strasbourg, France
2.1. Introduction
Can the luxury sector still avoid its environmental and social obligations to society at a time when all other sectors of activity are facing increasing pressure from various stakeholders to tackle the challenges of sustainable development? In addition to strengthened environmental regulations and strong activism from non-governmental organizations (NGOs), consumers have shown a deep concern for societal issues.
It is obvious that, in this context, luxury companies must follow this movement at the risk of receiving blame; they have long been scrutinized because of their significant economic growth. Moreover, this sector has often been the subject of strong criticism linked to social issues. For example, the salespeople at a Gucci store in Shenzhen, China, denounced inhumane working conditions in 2011. The film Blood Diamond, for its part, revealed to the public the impact of the illegal trade of precious stones (destined for Western luxury businesses), in exchange for weapons, in terms of inter-ethnic massacres, notably in Sierra Leone and Liberia.
These controversies around the practices of luxury companies present a significant risk to brand image. A commitment to sustainability could mitigate this risk and be a differentiating factor on the market, especially as consumers have expressed new expectations of product quality that take sustainability into account.
More than that, the luxury industry should assume a leadership position in terms of a commitment to sustainability (Davies et al., 2012). Firstly, it acts as a model for other sectors to follow, as it is often a source of creativity. Secondly, the luxury industry has significant financial resources that would allow it to make responsible investments.
However, if luxury companies choose to engage in responsible activities, they are confronted with the difficulty of convincing others of the suitability of this strategic choice. Perceived contradictions between the values of sustainable development (sharing, donations, second-hand goods, recycling, etc.) and those of luxury (exclusivity, hedonism, ostentatiousness, etc.) can create a dissonance in the minds of consumers (Dekhili and Achabou 2016). In addition, responsible practices (the use of recycling and vegetable materials, etc.) can have a negative impact on the perceived quality; luxury products have historically been associated with the use of high-quality raw materials (Achabou and Dekhili 2013; Dekhili et al. 2019).
The aim of this chapter is to shed light on the issues related to the luxury industry’s commitment to sustainable development. In particular, it proposes to highlight the actions that marketing can offer luxury companies to bring together two notions that may seem contradictory: luxury and sustainable development.
Our contribution will be structured around two main sections. First, we will discuss the strategic interest for luxury brands in integrating sustainable development issues, as well as the risks associated with this choice. Second, we will detail the sources of the perceived contradiction between luxury and sustainable development, and will present solutions to overcome it. For illustrative puposes, an interview conducted with the founder of an innovative luxury start-up, Just Ananas, which supports animal welfare, is included.
2.2. The commitment of the luxury sector to sustainability: an unavoidable but risky strategic choice!
If, in the past, the luxury industry has made headlines for its double-digit growth, even in times of crisis, today it is its commitment to sustainable development that is at the heart of the debate. The question is no longer whether or not this sector should integrate environmental and social issues, but rather how to do so while safeguarding its specificities, notably the exceptional quality of its products.
2.2.1. From luxury that wastes natural resources to “sustainable luxury”
If considering the history of luxury, it is possible to go back as far as the time of the pharaohs. During this period, luxury was reserved for the pharaohs, their spouses and some high-ranking dignitaries (embalming the body, building tombs, etc.). In the West, luxury products were created by traditional craftspeople and in very limited quantities, destined for the wealthiest individuals. Since the Second World War, a trend towards the industrialisation of luxury production has been observed. It aimed to respond to the growing demand of populations frustrated by years of privation (wars) and whose quality of life had improved. The luxury industry progressively underwent a strong concentration with the emergence of large groups, such as LVMH, today’s world-leading luxury group.
However, despite the fact that the emergence of this concept goes back several years there is no consensus on its definition among the academic community (De Barnier et al. 2008). When summarizing the features that can describe it, there are four that stand out. The first, naturally, is quality. A luxury product or service must necessarily be of impeccable quality. Superior quality is associated above all with the use of so-called noble and prestigious raw materials. These materials must be worked with a specific savoir-faire, by an artisan (real luxury), and if a machine is involved it must only be in a small part of the production process. The superior quality confers another important characteristic on the product, namely longevity. Luxury products are known for their ability to last a long time. Contrary to the “fast fashion” industry that adopts a logic of short-termism and planned obsolescence, luxury is managed with a long-term perspective (Janssen et al. 2014). In this regard, the after-sale services of brands increase the length of the products’ lifespan. For example, the Louis Vuitton brand has five repair centers in Japan that ensure that damaged products can continue to be used. The third and fourth characteristics of a luxury item are scarcity and exclusivity. Scarcity can be the consequence of natural or technological constraints (innovations) or can stem from constructed constraints (virtual rarity) (Catry 2007). Exclusivity, for its part, reflects the fact that the purchase of luxury products remains the reserve of a very limited segment of the population. It is also linked to the concepts of exclusion (“I am the only person to have the product”) and stratification of the population. For Vickers and Renan (2003), scarcity and exclusivity are important for luxury consumers who are seeking to show their membership of a group or confirm
