Green Luxury

1. Green Luxury
Prof: Jean-Claude ROUSTANT
Ranjan Kumar 7th November, 2014 Marketing of Luxury Products

2. Letter of Transmittal
A Report on Green Luxury
Prof. Jean-Claude ROUSTANT
Faculty, Marketing of Luxury Products Course
Groupe ESC Troyes
Dear Sir,
As per your instructions, I have prepared a report on Green Luxury as part of the Marketing of
Luxury Products course requirement. The report that contains a brief introduction of the topic
and consumer behavior associated with it.
Yours sincerely,
Ranjan Kumar

3. Executive Summary
Green Luxuryisanemergingtrendintheluxuryindustry.Depletionofresourcesand increasingawareness
forsocialandenvironmentalissueshavebeenthedriverforemergenceofthisfield.
Thewaythebrandcallsit greenvaryfromeachother.Itcanbeonthebasisofoperationalprocessor
product.Basedonthe study,ithasbeenfoundthatthereexistssubmarketsingreenconsumersand
associationwith greenmarketingincreasesthebrand image.Butthisdoesnotnecessarily guaranteethe
purchaseintention.
Greenluxuryismoreeffectiveforthenewcomersthantheregularluxuryconsumers.Exampleofbrands
like Edun,HonestBy,etchavebeenexplainedattheend.

4. Contents
Introduction............................................................................................................. 4
Green Luxury- a synonymofSustainability ................................................................. 4
A NewwayofDe-maturationor aTrend..................................................................... 5
Changing Trends....................................................................................................... 6
ConsumerBehaviorforGreenLuxury......................................................................... 7
Sustainability- as per Brands...................................................................................... 7
Examples................................................................................................................. 8
Conclusion............................................................................................................. 13
References............................................................................................................. 14

5. Introduction
The word ‘Luxury’ is derived from Latin word “Luxus” that means ‘excess’. The Oxford defines
Luxury as an inessential, desirable item which is expensive or difficult to obtain.
Luxury is defined as a specific kind of sign value (MORTELMANS), produced in specific narratives
and used in processes of stratification. As a sign, it becomes apparent that luxury is a relative
concept. Every social group can be said to have its own luxury.
“Some people think luxury is the opposite of poverty. It is not. It is the opposite of vulgarity.” –
Coco Chanel.
Similarly, to the above statement luxury is sold as an association to social status and are attached
to the persona. Brands speak the characteristics of the consumers.
With the trending behavior of consumers towards more concerns for environment and its
sustainability, has marked a few changes in the luxury industries. The global recession, economic
down-turn, increasing expectation of consumers and increasing awareness of real environmental
and social challenges have affected the way of thinking of consumers.
“Luxury world cannot live in a bubble. We are not isolated.”- says
The affluent green-conscious customers are ready to pay high for eco-friendly offerings in luxury
industries. If we have go-green consumers, then their priorities and needs require attention.
This marks the start of a niche field in Luxury Products Marketing “Green Luxury”. It can be seen
as a combination of Green Marketing and Luxury Products Marketing.
Green Luxury - a synonym of Sustainability
“Luxury should be synonymous with sustainability”- James Lawson (Simpson, 2012), Ledbury
International market research firm.
But Luxury is associated with terms like indulgence, extravagance, sheer look-at-me bling,
unnecessary, show-off – is the antithesis of responsibility - which actually means luxury is having
guilty pleasure.
But green luxury marketers have totally different viewpoint to it.
It is the story behind the brand is what makes people to buy at high cost. It is increasingly driven
by trust and legitimacy. The exclusivity and rarity of the products are what get sold.
With rising consciousness for environment, going green is the new story that can be sold.

6. A New way of De-maturation or a Trend
When an industry reaches to a matured stage, i.e., marked by saturation in growth curve, then
new addition to the existing product/services can bring back to the growth stage. This is called
de-maturation. On the other hand, trend is known for temporary changes in the behavior of
consumer.
As luxury industry is associated with a strong foundation of story, the story that should stay
eternal in nature. So, it should never be a temporary. But it is sometime influenced by trends.
The way consumer chooses the product is very much depended on the sentiments about the
brand. And the trends are the result of sentiments.
Moreover, a report (D’Arpizio, 2013) from the Altagamma Foundation and consultancy firm Bain
& Company confirmed the world luxury market has reached a maturity and stabilization phase.
So, green luxury can be a way for de-maturation.
“We are entering a new phase in the evolution of the luxury market,” said D’Arpizio. “More
markets, more segments, and more diversity of tastes all combine to create more variables to
solve for when pursuing the right strategy for growth.”

7. Changing Trends
Luxury market earlier splurges on quality, time, rarity and experience. Now, sustainable
consumption has become a trait of the industry. The typical ‘green’ consumer is no longer limited
to premium or mass segment. Today, green luxury consumers check for social responsibility too,
before making a purchase.
Luxury consumers have shown their concern for environment damage, global warming, and
protection of wildlife.
The affluent consumers are taking the lead as early adopters of green living. This trend has call
for luxury brands to connect with their customers who are increasingly green aware and eco-
conscious. Green marketing has become a part of their strategy.
There are a lot of trend setters – dedicated to create offering among green-living luxury
consumers.

8. For example – designer Stella McCartney who is famous for no-animal policy and known for
fashion forward and environmentally sound style. Donna Karan with her Urban Zen initiative –
combines a philanthropic foundation along with a retail arm that distributes a line of natural and
organic fashions – is in forefront of green movement.
Green House – Home of Eco Smart Style – online initiative by Saks Fifth Avenue to sell eco-friendly
designer fashion, home furnishing and jewelry made from recycled metals. Also, Saks has also
brought ‘natraceutical’ skin care products.
With so many changes happening, luxury brands cannot afford to ignore it. They have started
learning from these trend-setters.
Consumer Behavior for Green Luxury
Based on a survey of 524 consumers from US, Japan and Korea, (Mardhia, 2010) Izza Mardhia
tested consumer behavior in green marketing for Luxury Brand. The test result showed that
luxury brand image had positive effect on satisfaction with green marketing activities of luxury
brand. Also, preference for the brand depended on honesty, professionalism for luxury, social
contribution and high-quality and had direct and positive effect on satisfaction with green
marketing activity.
On the other hand, the SEM analysis also showed that green marketing satisfaction did not have
direct effect in the increase of purchase intention. But it had indirect effect through improvement
of brand attitude. The consumers have high interests in and positive attitudes toward
environmentally concerned products, yet such interests and positive attitudes do not lead to
purchase.
The study also showed the existence of sub-markets in green-consumers (Coddington, 1993) and
it was necessary to segment consumers who had environmentally concerned propensity, to make
categorized targets of them, in order to maximize the effect of green marketing in luxury brand.
Moreover, it was seen that green marketing would be more effective for entry customers than
for regular customers of luxury brand.
Sustainability- as per Brands
Green Luxury can be associated with Sustainability. But the problem is what defines
sustainability. We do not have a concrete definition. We do not know how to measure it.
It can be seen as something that is purely extracted from the nature – no usage of chemicals. Or
it can be connected to the reduced carbon rating. Or it can be associated with usage of renewable

9. energy. It can be associated with ethics or having eco-practices in some or whole process of
delivering product/services.
UNO defined sustainability as usage of present resources keeping in mind that it will be available
for the future generation. But, we are not sure if using in the way, that we think is the most
sustainable way, will actually maintain the sustainability. Different brands have different way of
calling their offering supporting the sustainability of the environment.
Different brands, thus, see it in different way.
Stella McCartney, states that “the way to create sustainable fashion is to keep asking questions
[about origin and materials] while making sure to make desirable, luxurious, beautiful clothing
and accessories that women want to buy.”
François-Henri Pinault of Kering states that sustainability “gives us an opportunity to create value
while helping to make a better world.” Included among Kering’s brands are Gucci, Saint Laurent
and Balenciaga all of which conjure up images of decadent luxury.
Some brands have started working outside their core to contribute to environment and gain
green marketing credits.
Examples
 EDUN
It is now owned by LVHM. It was founded by Ali Hewson and U2 frontman, Bono in 2005.
It promotes long-term, sustainable growth opportunities in Africa by supporting
manufacturers, infrastructure and community building initiatives. The aim of the
company is to increase trade throughout the continent of Africa. Their ethical framework
is highlighted by the fact that “85% of the EDUN collection will be produced in sub Saharan
Africa” for their ethically sourced ready-to-wear spring 2014 collection. The merging of
fashion and sustainability is emphasized by the brand’s latest designer, Danielle Sherman
who gets much of her inspiration from Africa. Sherman pays particular attention to
“flattening” the female silhouette through collarless shirts, blazers and coats, giving the
collection a minimalist vibe.

10. Prices vary within the collection and starting at about $400, you can be guaranteed to find
something to suit most budgets.
 Stella McCartney
The sustainable fashion designer is renowned for role in decreasing the carbon footprint
in the world of fashion. Amazingly, her company’s UK based studios and offices are all
powered by wind energy. McCartney believes that companies are responsible for the
resources they use, something that is clearly reflected in her respective collections. As
much organic cotton as possible is used when designing new collections and the company
continues to source new, recyclable materials.

11. McCartney’s sustainable collection includes eco-friendly eyewear made from over 50%
natural and renewable resources. They are comprised of raw materials from natural
origins such as castor-oil seeds and citric acid. Eyewear prices range from $350 to $230.
Also in her collection are biodegradable soles that are made from a bioplastic called
APINAT. She has launched a leather that has a coating created with over 50% vegetable
oil, enabling the company to use less petroleum in their products.
 Bodkin
The goal of Bodkin is the merging of a particular aesthetic with an emphasis on
sustainability. The company uses recycled and organic fabrics as well as non-harmful dye
in the production process. Bodkin “actively seeks out and promotes materials that use
vegetable-based or zero-effluent dye processes.” Hartman has spoken out on the
controversy surrounding the expense of eco-fashion, stating that demand for organic
cotton outstrips supply, making it more expensive.

12. Additionally, “beautiful things made with care and detail by skilled people” as opposed to
mass manufactured clothing will always cost more. Vivienne Westwood echoes this
sentiment encouraging shoppers to choose quality over quantity when making purchases.
 VogueVert
Every purchase from VogueVert guarantees $1 and 10% of the profits of a donation to the
VogueVert Charitable Foundation. Not only does the ‘Fashion for Development’
foundation fund scholarships for green design students, but it also supports causes that
advance the protection of the environment, animals, and women on a global scale.
The mission of VogueVert is to bring conscious luxury to the consumer, their tagline states
“Giving Back is the New Luxury.” Its guiding principles are the four Es: Education,
Empowerment, Enhancement and Enrichment. Their products are made from
sustainable, recycled and vegan materials and range in price from $99 to $500 and above.

13.  Honest By
Belgian fashion designer, Bruno Pieters founded Honest By in 2012 following a trip around
the developing world. Pieters spent time observing the ways in which natives wore
clothes as well as the materials they were made up of. He found that clothes were grown,
woven and sewn from local, organic sources. The name of the company reflects the 100%
transparency under which Honest By operates. Materials used by the company and those
they choose to collaborate with “share their personal production information from yarn
and button origin to fabric and manufacturing details; information which honest by then
communicates to the client.”

14. Even the store markup calculations are transparent, which sets Honest By apart from the
vast majority of fashion design companies. Honest By lives by the philosophy that fashion
is about beauty and that the story behind fashion can be equally beautiful. The company
wants to provide a unique shopping experience whereby the customer can purchase
luxury items with complete awareness of the origin and artisanship of what they are
buying. Catering for both women and men, prices vary across the board.
Conclusion
Green Luxury is not trending in the industry and is getting a very positive response from the
consumers. As the brands reflects the care for the environment and sense of responsibility
fulfillment towards the community, more people want to associate with it.
The study show that the attitude towards the brand increase if it has elements of green
marketing. The question, that is still to ask, is green luxury can help to actually sustain the
environment or it will be just a way to make money on the name of conversation.

15. References
D’Arpizio, C. (2013). Luxury Goods Worldwide Market Study. Bain & Company.
Mardhia, I. (2010). Consumer Behavior in Green Marketing for Luxury Brand: A Cross-Cultural Study of
US, Japan and Korea.
MORTELMANS, D. (n.d.). Sign values in processes of distinction.
Simpson, A. (2012). Luxury: the new epitome of green values?, Green Future Magazine.
http://www.therichest.com
http://www. theluxurychannel.com