WWF's Deeper Luxury Report

The WWF has published a 52 page report which could herald a huge change in the way global luxury brands operate. Entitled Deeper Luxury, the report has been written by Jem Bendell and Anthony Kleanthous and claims that there has been a powerful paradigm shift in the way luxury is perceived by consumers.

Companies that retail at the higher end of this global market, need to alter the way they work to reflect the way consumers feel, it argues: "we are seeing the birth of a movement for authentic luxury that could remind us all that sustainability is truly our highest aspiration and greatest success."

Part of Deeper Luxury focuses on measuring 10 of the largest luxury brands Environmental Social Governance (ESG) on a scale A-F. French beauty giant L'Oreal was the top performer with a C+ score, while Italian accessories label Tod's came bottom. None of the other companies (Louis Vuitton, Gucci, YSL, Garnier and IWC among them) scored higher. The authors identify a "sustainable consumption challenge" and call upon luxury brands to literally get their houses in order. There is a 10 point plan of action to help them get started which includes "embedding social responsibility and innovation into corporate and brand DNA" and they have also compiled a Global Reporting Initiative and encourage companies to "measure and report on their performance in accordance with international guidelines."

In 2007, luxury is not about appearance, Deeper Luxury claims that today's consumer wants something more and they now expect luxury brands to show environmental and social responsibility. This is not confined to one continent, WWF's findings indicate that this global wave of awareness is also affecting consumer behavior in Asia, Latin America and even China, albeit supported principally by the middle classes. In India, it's pointed out, the cost of a single luxury item can equate to the yearly income of a small village and the PM has actually asked the nation to "eschew conspicuous consumption" and instigated at 114% tax on luxury goods.. In China there is concern about the disharmony created by luxury brand advertising and the mayor of Beijing has gone so far as to ban such advertising on billboards.

In a week where Stella McCartney has been named British Fashion Designer of the Year, and the homegrown label howie's celebrates 12 years of growing slowly and opening its first shop, the WWF report does indeed reflect the changing consciousness of millions of consumers. There is no guarantee that the Gucci's of this world will sit up and take notice, but there is no denying that ethical issues are increasingly important to everyone and we in the UK like fashion labels who think about and aren't afraid to account for their social and environmental impact.

Words: Marian Buckley

www.wwf.org.uk/deeperluxury

Update: According to WGSN, the head of LVMH has made an announcement which suggests the luxury market is set to flourish regardless of the concerns outlined in the Deeper Luxury report. "LUXURY MARKET TO DOUBLE BY 2012, US STILL HAS GROWTH POTENTIAL, SAYS LVMH CEO
Global sales of luxury goods will double over the next five years and there is still growth potential in the US, Bernard Arnault, chief executive of LVMH, said yesterday.
Luxury goods will generate €300bn by 2012."