Is this the Era of Ethics?
Ethical consideration has turned out to be a significant consideration for individuals in the modern society. Awareness about the ecological effect of mass consumerism, consistently changing demands in fashion, and throwaway pattern of the society has ended up increasing in a considerable manner since recent times.
Ethics in Luxury Industry
Irrespective of continuous economic slowdown, the industry of luxury brands is increasing at an average growth rate of 4 per cent on annual basis. Luxury products can be defined as several products like couture fashion, accessories such as watches, jewellery, and perfume, and other items such as crystal, champagne, and cars. Such luxury products help in offering emotional and prestigious value, instead of functional utility (Pavione et al., 2016). Maximum peer reviewed research with respect to ethical consideration has focused on FMCG brands (Sun, 2013). However, there is a huge gap in these researches regarding the gap between favourable attitudes of individuals towards ethical consideration and actual customer behaviour. For this blog discussion, key focus will be on the luxury market.
Vast researches regarding ethically consuming these goods have been considered even though there are positive understandings about ethical considered. There is no necessary translation of this aspect in action. The key concept related to this is the gap between behaviour and attitude. The overall influences of personal values and attitudes have a weak impact on the behaviour of consumption with respect to luxury products (Pavione et al., 2016). This particular gap in attitude and behaviour in context with ethical consumption is extremely high for luxury products.
During the consumption of luxury products, individuals consider discarding concerns related to ethics, while indulging in emotional pleasure, prestige, social status, and rewards. This ends up enhancing the involvement of ethical dilemma. Several researchers as emerging trends have depicted that consumers with high income sources show acceptance for unethically consuming luxury products. This depicts that as the financial standing of people is improving, their overall desire for indulging emotional satisfaction and status symbols increases with the inclusion of high end fashion products (Macchion et al., 2015).
As a result, there is overriding impact of ethical and altruistic concerns. Based on the current trends, it is necessary for motivating customers to show engagement in sustainable and ethical forms of luxury. However, sustainability in the luxury industry is still an extremely new concept. Moreover, this trend can only be initiated by luxury brands for ensuring their engagement in ethical activities of production and marketing considering individual propensity for discarding concern related to ethics during the purchases of luxury products.
The key question is regarding how luxury brand can be repositioned for embracing the change of sustainable and ethical luxury, and providing a narrative demonstration of sustainable luxury. The key lies in maintaining authenticity. Luxury brands have to ensure genuine implementation of eco-friendly and sustainable models in their business practices while creating a hype based on the practice (Macchion et al., 2015).
As a significant example, Tiffany, the luxury brand is conducting operations in a sector that is responsible to introduce conflicts among the African communities. For initiating positive change in this understanding, the luxury brand started sourcing diamonds and metals from ethically known and responsible mining suppliers. Tiffany is following a policy of zero tolerance in obtaining diamonds from nations with infringements of human rights. They have further set up a foundation to work upon conserving reef and raising awareness in context with responsible mining (Sun, 2013).
With ethical and sustainable luxury practices involved, luxury brands have to maintain consistency in communicating the message with the audience. This has to be completed with subtleness for sustaining authenticity in the marketing narrative. The best approach that luxury brands can follow is to build communication and editorials in a transparent manner with aspects like features, projects and micro-sites (Macchion et al., 2015). Luxury brands have always stayed consistent in embracing the component of mystique, but this era is consistently changing. The digital era has enhanced the involvement and impact of consumers on brand success. Therefore, it is more than necessary to perceive ethical aspects in marketing of luxury products and services.
References
Macchion, L., Danese, P. and Vinelli, A., 2015. Redefining supply network strategies to face changing environments. A study from the fashion and luxury industry. Operations management research, 8(1-2), pp.15-31.
Pavione, E., Pezzetti, R. and Matteo, D.A., 2016. Emerging competitive strategies in the global luxury industry in the perspective of sustainable development: The case of Kering Group. Management Dynamics in the Knowledge Economy, 4(2), pp.241-261. Sun, H., 2013. Living together in one civilized world: how luxury companies and consumers can fulfill their ethical responsibilities to the poor. UCDL Rev., 47, p.547.