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Gone are the days when ethical trade was considered at best a ‘luxury’ and at worst, the preserve of sandal-wearing weirdos. In 2007, Impactt blogged about WWF’s ‘Deeper Luxury’ report which investigated the performance of 10 luxury brands against issues such as ethical trade, environment and stakeholder engagement. None of the brands achieved an A grade; a reflection of their lack of commitment towards the ethical agenda. Over a year later, we are pleased to note the situation seems to have changed for the better.

In a recent article in the Sunday Times, Francois Henri Pinault, whose firm PPR is the second largest luxury- goods conglomerate in the world spoke about sustainable development as a business opportunity. He wants PPR to enjoy first-mover advantage in ‘responsible luxury’.

Pinault is prepared to sell fewer, more long-lasting, sustainable items- a move that could affect the bottom line. “We went too far, all of us in the luxury world in the past five years. Now, let’s go back to product and do it right” he says.

‘Luxury: Considered’ a global report by the De Beers Group echoes this view. The report says buyers are leaving ‘fast luxury’ behind for fewer, better things and this dynamic shift will have a lasting impact on the way luxury brands do business.

Impactt welcomes this change in outlook and hopes that luxury brands’ actions will mirror their words. After all, consumers’ expectations of ‘luxury’ are changing radically. It is no longer just about pleasure, prestige, exclusivity and self-indulgence. Luxury brands now need to reflect the values of their consumers and ensure that their provenance is as classy as their products. We look forward to seeing how different brands are going to respond to this challenge and turn it into a distinct business advantage.

Very interesting angle and a thought-provoking read.