Guillaume Gauthereau, founder and chairman of The Sequoia Lab, reports on why it pays for premium brands to commit to sustainabilty initiatives, for the dual purpose of improving operations and connecting with the next generation of luxury consumers.
CONSUMERS
Sustainable Luxury Presents New Opportunities
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Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.
PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.
In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”
The Fondation Cartier pour l’Art Contemparain building in Paris
Guillaume Gauthereau, founder and chairman of The Sequoia Lab, reports on why it pays for premium brands to commit to sustainabilty initiatives, for the dual purpose of improving operations and connecting with the next generation of luxury consumers.
Guillaume Gauthereau, founder and chairman of The Sequoia Lab, reports on why it pays for premium brands to commit to sustainabilty initiatives, for the dual purpose of improving operations and connecting with the next generation of luxury consumers.
Since September 2008, many devoted luxury shoppers have been hiding their shopping bags. Customers feel conflicted about what they really “need” in this new economic landscape, discouraging purchases that previously wouldn’t have garnered a second thought. In addition, customers increasingly seek to align their purchases with their social values and sustainable lifestyle.
This new consumer mindset poses an interesting challenge to luxury brands. While on the one hand, global luxury sales have rebounded nicely with projected growth of 10% in 2010, on the other, this uptick does not necessarily translate into profitability over the long term.
As the aging Baby Boomer population scales back on its spending, and more awareness develops around where products come from and how they are made, the luxury sector will have to seek out alternative growth strategies. In this era of consciousness around spending habits, specifically amongst the socially and environmentally aware Gen X and Y’rs who wield the new spending power, luxury brands have a lot to gain by conveying they are committed to corporate social and environmental responsibility.
In previous years, a marketing executive at Hermes might have balked at the idea of diluting brand image by suggesting to customers they are “green”. However, the values luxury brands stand for align perfectly with green practices. These include timelessness, durability, innovation, craftsmanship, and a meaningful brand and retail experience — all characteristics that mirror the underlying goals of sustainability and social responsibility.
“ luxury brands can enjoy the advantages of being both profitable & sustainable ”
Today, CEO’s and brands are asking themselves a new set of questions: How do we position our products to reflect this new customer mindset? How do we preserve our DNA while taking a sustainable approach? What should we do internally so that the message of conscious branding is understood, integrated and transmitted throughout our organization?
Some prestige brands are leading the charge in this capacity. Kate Spade, the accessories and handbag company, has launched an extraordinary effort with Women for Women International in order to promote job opportunities in Afghanistan. The women employed by the program will create bracelets with the goal of developing long-term growth and stability in the country. Nordstrom, one of the nation’s leading fashion specialty retailers, is using their new location in New York to test a retail concept devoted to philanthropic efforts that will donate all proceeds to non-profits. And despite the fact that Levi’s is marketed as a brand with mass, as opposed to designer, appeal, their commitment to sustainability within their supply chain merits attention. The new “Water Less” denim line will utilize washing and finishing techniques that use 28 to 96 percent less water, depending on the style, than the 42 liters of water it now takes to produce the average pair of jeans.
By examining their supply chains and core values and translating that into intelligent messaging and operational practices, luxury brands can enjoy the advantages of being both profitable and sustainable.These strategies can help them reach new customers and breathe new life into the industry for decades to come.
This article has been published courtesy of Sequoia Lab where it first appeared here under the headline, ‘Sustainable Luxury: New Opportunities for Growth’.
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Entrepreneurial leader and decision maker with success shaping and guiding organizational success in the luxury retail and high-end wholesale industries. Ability to identify and capitalize on opportunities that penetrate new markets, drive profitability, and increase shareholder value. International experience.
