Reina Bayoud | Staff Writer
The luxury industry was created in the 1920s, “The Roaring Twenties,” and nothing has been the same since then. It goes without saying that the luxury lifestyle is one that many people envy and actively go after regardless of the toxic effects it may have on our lives. Seeking that lifestyle meant more significant pollution due to mass production of demanded products, economic downturns due to overconsumption, and mass changes in social behaviors.
However, during the digital age, several social media pages, influencers, and activists seized the opportunity to bring light to the numerous global crises we face. The prominent one is the environmental crisis. With Millennials and Gen Z being cultured and educated on the subject, they decided to take matters into their own hands. Millennials and Gen Z, who make up to 85% of luxury sales, grew up to be environmentally conscious, now more than ever. However, since we live in a consumerist society, constantly bombarded with advertisements, brands, especially luxury ones, have found a way to balance consumerism with sustainability. So how are they doing it?
First, to gain the trust of their current customers and potential ones, luxury brands have to rebrand themselves, reflecting authenticity in their marketing strategies. They should reflect the sustainability and environmentally-friendly actions brands take to live up to the Millennials, and Gen Z demands.
Second, luxury brands should communicate their sustainable luxury strategy. To do so, they should be transparent in their actions to implement an appropriate sustainability strategy. The most used communication strategy is through the brand’s website. We can see this on many luxury brands’ websites, such as Nespresso and its “Sustainability” page, as well as Tiffany & Co. that states its “Sustainability Pillars.”
Third, brands can campaign for sustainability changes. This creates an authentic and genuine impression of the company and showcases that it is actively seeking change worldwide. In the digital era we live in, Millennials and Gen Z are actively looking for more information before purchasing decisions. Their primary sources of information are websites and social media pages. By having luxury brands campaign for a change and encourage other brands to adopt sustainability strategies and eco-friendly products, they can position themselves as pioneers in a valuable topic. Also, influential brands can introduce sustainability plans as a new ethos in luxury brand management.
Finally, luxury brands are now working on backward integration. By acquiring their raw materials, these brands can now control the entire production process by ensuring it is entirely ethical. From verifying that labor work is ethical and moral to making sure that the raw materials are sustainable, luxury brands are using these methods to guarantee that customers do not doubt whether the brand is ethical and sustainable.
You can only imagine the tremendous impact Millennials and Gen Z had on luxury brands, as they felt the need to drastically change their marketing strategies, operations, and production processes. In addition to how environmentally conscious they have to be to gain and retain their customers. After all, no brand wants to face a scandal on social media!