Is Luxury Compatible With Corporate Social Responsibility (CSR)?

Luxury as a field of research has attracted many scholars who examined the potential connections and (in)compatibilities between luxury and corporate social responsibility (CSR). While some studies emphasize the incompatibility between luxury and sustainability, others highlight the important efforts of luxury brands in terms of luxury offerings and sustainable marketing strategies to fit eco-friendly consumers. To foster this research stream, this chapter develops a deeper understanding of the rise and evolvement of CSR in the luxury sector and the major marketing strategies implemented by luxury brands to fit with the needs of today's responsible consumers. The authors will first present a chronological literature review through three key periods, including the underground and advancement stages to the consolidation of sustainable luxury marketing as an established research stream. Then, a framework identifying different luxury CSR strategies will be proposed. Finally, opportunities and futures challenges will be discussed at the end of this chapter.

Pivots in the Luxury Business

Consumer behavior is continuously evolving, and with it, so is the business of luxury. Besides other societal and economic changes, digital technology and social networks have affected how people search for information, buy products, and relate to luxury brands. As a growing number of people use social networks, an abundance of social data can be analyzed to detect shifts in perception and behaviors, generating insights that can benefit luxury brands. There is a need for theoretical conceptualizations and, based on these, strategy frameworks to help identify relevant sources of social data and derive actionable insights by using social media intelligence in a strategic, structured, and impact-oriented manner. With their conceptual study, the authors aim to close this gap and contribute towards marketing management literature by proposing a conceptual social listening framework. Their framework highlights the benefits of using social data and explains the basic steps of turning data into valuable insights that drive managerial action based on relevant theory and technology.

Examining the Integration of Virtual and Physical Platforms From Luxury Brand Managers' Perspectives

“The internet dilemma” was the concept used to describe luxury brand companies' initial reluctance to integrate online technologies into their business model. However, over time, luxury brand companies have understood that moving towards digital transformation is the only way to survive on the market and appeal to the new luxury brand consumers. In a few years, digitalisation has become a priority for all luxury brand companies that started to integrate digital and physical platforms to engage consumers through all touchpoints of their shopping journey. In light of the topic's relevance and considering the primary focus of research on consumers, this chapter aims to deepen the digitalisation phenomenon in the luxury market involving the little-explored luxury brand managers' perspective. The authors conducted a longitudinal study to compare the main changes in integrating digital and physical platforms from the managers' perspective between 2014 and 2020. In this endeavour, they also considered how the COVID-19 pandemic had affected luxury brand companies' digitalisation.

Luxury Brands and Strategic Management Accounting

It is generally accepted that the primary objective of the discipline of management accounting is to provide relevant information, financial and non-financial, to business managers in order to assist in their decision making. This discipline evolved during the Industrial Revolution and it was, initially, referred to as cost accounting due to its emphasis on reporting internally-orientated cost information. The purpose of this chapter is to highlight the current techniques of managerial accounting widely used by business organizations all over the world and to describe the managerial implications of said methods when they are utilized by players operating in the luxury sector.

Upcycled vs. Recycled Products by Luxury Brands

This chapter aims at covering an important gap, contributing to research in the field of luxury markets as well as sustainable consumption, and focuses on new sustainable products by luxury brands. Through an experimental study 3x1 between-subject design in which the product material (upcycled vs. recycled vs. virgin) of a fictitious luxury product was manipulated, the authors investigated which luxury product (upcycled vs. recycled vs. not sustainable) is preferred by consumers in terms of attitude and purchase intentions. Results of this experimental design can inform luxury product managers and designers about whether consumers react more positively towards upcycle vs. recycle products when consumers' status motives and environmental consciousness increase. In addition, they can understand the reasons and emphasize those in their marketing communications to increase demand for those products with this study.

Omnichannel Shopping Experiences for Fast Fashion and Luxury Brands

This chapter explores how luxury and fast fashion brands have been affected by omnichannel strategies, which refer to the opportunity to integrate online and offline channels to create a seamless shopping experience aimed at engaging customers. Through a quali-quantitative research approach, the study examines the potential effects of the implementation of omnichannel activities on the perception of luxury and fast fashion brands. Interestingly, consumers perceive omnichannel strategies as something projected for luxury brands, thus as a way for them to improve the luxury shopping experience. Consequently, when applied to fast fashion brands, omnichannel strategies may lead consumers to perceive such brand as more prestigious, activating a sort of “luxurization.” For a luxury company, omnichannel strategies may represent an opportunity because they can increase the perceived luxuriousness of the brand, but also a threat because they may help fast fashion brands to be perceived as luxurious, thus “imitating” luxury companies.

When Luxury Brands Changed Their Approach to Social Media

COVID-19 lockdowns led to a new approach to social media communication by luxury fashion brands. This chapter explores recent pandemic-related changes in the social context and the need for brands to rethink their narrative to engage consumers and influence purchase decisions. The authors selected a panel of 28 fashion luxury brands, both independent and conglomerate-owned, to analyze the paradigm shift in social media communication and content creation. Their findings show that with social media acting as the main touchpoint, luxury fashion brands have effectively produced new communication archetypes, revealing the latent potential of digital platforms as strategic tools.

Designing Luxurious Food Experiences for Millennials and Post-Millennials

The relationship between young generations (Millennials and Gen Z), luxury, and food is a current and complex subject. Millennials and Gen Z are the first digital native generations to be very comfortable with technology devices and interested at an early stage in luxury food experiences. By exploring youth food culture and current luxury food experiences and practices, the authors identify three trends (digitalization, extended realities, and cause-related marketing) as key areas food brands and food actors (e.g., restaurants) should capitalize on to educate, facilitate, and promote the adoption of pleasurable, healthy, and sustainable food consumptions. The authors provide an overview of these three new key trends together with examples Millennials and Gen Z consumers are attracted to considering luxurious food consumption and experiences. This chapter contributes to the need to look at contexts of application (food) where sustainability and the digital transformation highlights the present and future for the promotion of luxury goods and experiences.

Managing Integrated Brand Communication Strategies in the Online Era

After digitalization, both scholars and practitioners found that luxury companies, which have invested in this transformation, not only have increased their revenues, but have also improved customer satisfaction. Luxury companies have reached a greater number of consumers worldwide, but the communication pillars have been preserved. In the near future, luxury companies will have to deal with the effects of COVID-19. Most likely, some of these changes will be a boost of the online shopping; a return to fewer purchases, of valuable items; and the need of an integrated shopping experience. The aim of the chapter is to show how luxury brands have embraced digital channels without losing their pillars. This chapter also aims to show that luxury companies have successfully invested in customer education and that consumers have adapted their behaviour to new touch points with the brand. Finally, this chapter aims to investigate new approaches to integrate the physical and the digital channels and the implications of COVID-19 on the communication strategies of luxury firms.

Generations' Attitudes and Behaviours in the Luxury Sector

The luxury sector needs to adapt its strategies to the digital advent, the online purchasing, and new young customers who have different behaviors and attitudes with respect to older generations. Young generations (Millennials and GenZ) signed a deep change for companies and influenced the way of doing business. They tend to gather information online, they share their opinions, and they pay attention to how companies behave. Since they represent a big part of the market, it is fundamental to understand if the luxury sector is relevant for them and how they consider luxury brands, for example, Moncler. Through an online questionnaire, a comparison between young and old generations has been realized.