Aligning Luxury Brands with Shared Values

There’s no denying that today's landscape of brand success is shaped, above all, by the concept of purpose.??

Behind the scenes, workers opt to align themselves with companies that share their goals and values, explicitly stating them in their brand identities and working to make change on an actionable scale. Brands are moving to make purpose more than just a buzzword, integrating sustainability, community focus and other goals into the framework of their everyday business.

But perhaps no one is focusing more on purpose than today’s consumer, especially in the luxury space. Increasing regulatory pressure is matched by growing consumer demand for environmental, social and corporate governance, or ESG, and considerations increasingly coming to the fore. Despite the vocal and feisty “anti-woke” agitators opposing ESG initiatives, most of their arguments focus on “meritocracy” vs. openly agitating against sustainable practices.

If companies want to remain competitive, they need to place sustainability front and center of their strategy. Here’s what you need to know about the luxury consumer’s growing interest in sustainability, and how brands can respond to remain top of mind for the savvy consumer in an increasingly crowded space.

Sustainability as status

With Teslas and Rivians dominating the driveways of high net worth neighborhoods – conspicuous non-consumption of petroleum – sustainability has become a status symbol in some smart set circles.?

Gone are the days of gas-guzzling SUVs. Today’s affluent soccer mom is making a statement by rolling up to a private school pickup in a BMW i5 with all the bells and whistles of the Ultimate Driving Machine and none of the deprivations of lesser vehicles. Organic produce is a must, but so is sustainable skincare, ethically sourced coffee and clothing by boutique brands that tout their use of recycled fabrics. There’s a reason that finance bros have swapped the suits for a Patagonia vest, telegraphing their commitment to a greener future.?

Sustainability often comes at a higher price point, and these consumers want to make sure everyone knows they can afford it. But the focus on sustainable luxury is about more than conspicuous consumption: it’s about making values systems conspicuous too.

Lowering consumption

This global shift to a more eco-conscious mindset among luxury consumers mirrors the evolution of the status symbol among the very top echelon of the economic elite. Since 2007, the world’s top 1% have been consuming less material goods, according to Elizabeth Currid-Halkett’s book The Sum of Small Things.?

Instead, “inconspicuous consumption” has become the name of the game, as the world's elite invests in intangibles — conscious, rather than conspicuous consumption.?

Why Sustainable Luxury Matters

The lifestyles of the rich and famous are all very well, but what do these top 1% trends have to do with the consumers your brand is approaching? After all, most of us can’t depend on a clientele of the world’s super-rich to keep our brands afloat — we need to connect with ordinary consumers too, even if they are on the wealthier side of the spectrum.

The answer is that, whether they’re leading the trend, or merely responding to shifting tides, these elite consumers aren’t the only people who are putting sustainability at the forefront. Increasingly, sustainability and luxury are being perceived as two sides of the same coin: you can’t have one without the other.

Around the world, five-star resorts are pivoting to an eco-luxury model, touting their use of solar power in their rooms, refillable glass bottled mineral water and locally sourced, organic produce in their kitchens alongside their boasts of high thread count sheets and private plunge pools. Nearly every luxury brand on the market brags about working with local artisans, creating garments from organically grown linen and heritage wool.?

This tendency to connect sustainability and luxury is only going to continue as Gen Z emerges as an increasingly influential segment of the consumer market. Surveys show that Gen Z prefers environmentally sustainable brands to such an extent that 73% of them report that they’re willing to pay a premium for more sustainable products. In addition to aligning with their values, this makes practical sense: the younger generation is going to bear the brunt of the deleterious environmental impact and a lack of sustainability.

To meet the evolving demands of this rising generation of consumers, brands must prioritize sustainability and lead with a values-first approach.

Making sustainability second nature

In years past, making environmentally responsible consumer decisions was seen as a matter of duty, rather than one of pleasure. Think of the stodgy macrobiotic veganism of the 90s or the smug earth-first activism of the 2010s.?

We were green because we thought it was the right thing to do, but with green chic going mainstream, consumers are making decisions that are grounded in a desire to show off their values and look good doing it.

By making environmental consciousness a core brand value, you’ll be able to appeal to the consumers who have disposable income to share, but you’ll also be increasing your presence in the larger marketplace of ideas.

People like to spend money in a way that feels like it’s making a true impact, and this is increasingly true with the greater amount they have to spend. Enabling people to do good, and look good while doing it, is the key to unlocking true consumer satisfaction and brand engagement for a lifetime – a long, sustainable lifetime.