This Week's Obsession: How Luxury Brands Disappoint on Earth Day
Earth Day began with purpose, and that purpose did not involve selling things. The inspiration for the first Earth Day took the form of a major oil spill off the coast of California in 1969, and has since become an annual event to promote “green” products, offer Earth Day discounts and release new sustainability reports.
Earth Day 2024 comes as a worrying new report found that global concentrations of carbon dioxide, methane and nitrous oxide – the top three heat-trapping gases – reached a record high again in 2023. Meanwhile, a separate study found that Antarctica saw an astonishing rise of 38.5 degrees Celsius above its average seasonal temperature back in 2022, leading to major concerns about the alarming rate at which global warming is affecting our planet.
Using consumerist culture to mark Earth Day is directly at odds with the underlying spirit of the global event. It promotes consumption as an answer to a problem that was caused, in large part, by overconsumption. And it perpetuates the notion that brands can tweak their way out of a mess that requires systemic change to solve.
As a wise person (most likely a woman) once opined, "Every day is Earth Day." Yet 55 years has passed and and Vogue Business this year declared they would not cover Earth Day because "No brand is doing enough to warrant a celebration for its impact on the planet." How is this possible, we ask ourselves. Let's take a deeper dive.
The luxury fashion industry has a sustainability problem. while some brands have take small steps to towards more ethical and eco-friendly practices, the industry as a whole remains slow to change.
Lack of Transparency
Many luxury brands continue to lack transparency in their supply chains and manufacturing processes. It's difficult for consumers to know where and how their products are made, and whether fair labour and environmental practices are followed.
Prioritising Profits
For most luxury fashion executives and shareholders, increasing profits and share holder returns remain top priorities. Investing in sustainability initiatives and ethical practices is often consider to costly or difficult. And when profits falter as they are currently for many luxury brands, the focus intensifies and sustainability may well fall off the priorities list.
Even Luxury Pushes a "Fast Fashion" Mindset
Luxury brands continue to push seasonal collections which fuels a "fast fashion" mindset. The rapid cycle of new styles leads to over consumption and waste. It also puts pressure o supply chains increasing the risk of poor working conditions and environmentally damaging practices.
Not to mention the problem ow what do to with all the overstock. Last month Business of Fashion reported that:
- The value of excess inventory held by luxury fashion’s biggest groups has grown to billions of dollars over the last decade, reaching €3.2 billion at LVMH and €1.5 billion at Kering last year.
- Such overproduction is a feature of fashion’s business model, intended to maximise production efficiency and sales prospects and is accepted by investors because it represents just a small portion of companies’ overall revenue.
- But disposing of this excess inventory is an increasingly complicated challenge, with regulators banning its destruction and luxury players reluctant to lean too heavily on discount channels.
While brands try to figure out different ways to address the issue of overstock, the biggest lever for change is not producing too much to begin with. “Eliminating the need to think about unsold products in the first place is the vital starting point,” said Elisa Niemtzow, vice president for consumer sectors at consultancy BSR. “It’s going to take creative and innovative thinking — and maybe thinking about different models of doing business.”
The overall fashion industry has a massive environmental footprint. The latest statistics say that apparel and footwear account for 8% of the world's carbon emissions, more than international air travel and maritime shipping. And the average consumer buys 60% more clothing items than then did 15 years ago but keeps each garment 1/2 as long.
At the current pace of change the fashion industry won't reach environmental sustainability for another 50 years. Luxury fashion is seen as glamorous and aspirational. But brands have been slow to match customer values.
Why are luxury brands slow to embrace sustainability?
One of the main reasons luxury brands have been slow to embrace sustainability is the traditional focus on exclusivity and high-end materials. Many luxury brands have built their reputation on using rare and exotic materials, which are often not sustainable or ethically sourced.
Additionally, the luxury industry has been slow to change due to the high costs associated with implementing sustainable practices. From sourcing sustainable materials to overhauling production processes, the initial investment required can be substantial, deterring many luxury brands from making the switch.
What are the consequences of this slow progress?
The slow progress of luxury brands in embracing sustainability has significant consequences for the environment and society. The fashion industry is one of the largest contributors to pollution and waste, and luxury brands play a significant role in this impact.
Furthermore, as consumer awareness and demand for sustainable products continue to grow, luxury brands risk losing market share to more sustainable and ethical competitors. Failure to adapt to changing consumer preferences could result in a decline in sales and brand reputation.
What steps can luxury brands take to improve sustainability?
Despite the challenges, there are steps that luxury brands can take to improve their sustainability practices. This includes investing in research and development to find innovative sustainable materials, implementing transparent supply chains, and reducing waste in production processes.
Collaborating with sustainable fashion initiatives and organisations can also help luxury brands learn best practices and stay up to date with the latest trends in sustainability. By taking proactive steps towards sustainability, luxury brands can not only reduce their environmental impact but also appeal to a growing segment of conscious consumers. Another approach that is gaining traction is the adoption of circular models.
By implementing circular models, luxury brands can showcase their commitment to sustainability and responsible consumption. This can attract environmentally conscious consumers who are willing to invest in products that align with their values.
Additionally, circular models can help luxury brands differentiate themselves in a competitive market by offering unique, eco-friendly products that appeal to a growing segment of conscious consumers.
What are Some Examples of Circular Models in Luxury Brands?
Some luxury brands have already embraced circular models by incorporating sustainable materials, offering repair services, and implementing take-back programs for recycling. For example, some high-end fashion brands are using recycled materials in their collections and offering repair services to extend the lifespan of their products.
How Can Luxury Brands Implement Circular Models?
Luxury brands can start by reevaluating their production processes and supply chains to identify areas where they can reduce waste and increase sustainability. They can also collaborate with suppliers and partners who share their commitment to circularity.
Furthermore, luxury brands can educate their consumers about the benefits of circular models and the importance of making conscious purchasing decisions. By engaging with their customers and promoting sustainable practices, luxury brands can build a loyal following of environmentally conscious consumers.
The More Luxury Club Advantage
Fractional ownership is a win for brands, customers, and the planet by cutting down the number of resources used. When 5 people share a resource, and that resource is maintained, repaired and resold that means only 1 item needs to be produced vs. 5. Sharing ensures the items is used vs. sitting in a closet and by maintaining the item we extend the lifespan of the item which makes is available for future use and resale.
There are many advantages to the brands; they can sell more items (rather than overproducing) because the price of entry is lower. That means more people are able to have high quality long lasting items, that are less expensive because they are shared. This allows their customer base to trade up to more expensive items that typically they cannot afford or don't believe their worth the price. This also allows the brands to move away from discounting their products that aren't sold. We protect the brand reputation by ensuring all shared items are authentic and pristine when resold. By embracing circularity, the brands move from overproduction to sharing, extending utilisation and lifespan allowing their pieces to be the vintage pieces of tomorrow.
Join the world of circularity through co-ownership. More is community led, meaning the community curates whats on offer. It all starts with choosing the bags that will be available for co-ownership each month. It's simple join the club, and vote for your favourites.
Overall, incorporating circular models can not only add sustainability credentials to luxury brands but also help them stay relevant in a changing market landscape. By embracing sustainability, luxury brands can demonstrate their commitment to responsible business practices and attract a new generation of conscious consumers.
