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The Value of Sustainable Luxury in

Mature Markets
A Customer-Based Approach

Marie-Cécile Cervellon
EDHEC Business School, France

Lara Shammas
International University of Monaco

This paper presents an exploratory research on the value of sustainable luxury across
four ‘mature’ cultures: France, Italy, UK and Canada. In order to unravel the deep
meaning of sustainable luxury for consumers, we use a visual elicitation technique,
the ZMET technique. Our results indicate that the value of sustainable luxury encom-
passes three categories, socio-cultural values (conspicuousness, belonging and
national identity), ego-centred values (guilt-free pleasures, health and youthfulness,
hedonism, durable quality) and eco-centred values (doing good, not doing harm).
This framework expands Hennigs et al.’s framework which is focused only on luxury
as well as frameworks on the value of sustainable goods and services which empha-
sise the collective dimension, society’s welfare, and often exclude the individual
dimension to such purchases. Several luxury values are enhanced through sustain-
OO Sustainable
able luxury (durable quality, conspicuousness); other values originate from the
OO Luxury
­sustainable nature of sustainable luxury, such as eco-centred values and some ego-
OO Ethical
centred values (guilt-free pleasures and health/youthfulness). Our findings indicate
OO Green
that these values are present across our four samples, yet, with nuances in meaning
OO ZMET
and different centrality between cultural groups. Individual drivers to the purchase
OO Consumer
behaviour
of sustainable luxury might be central in several cultures (Southern Europe) while
OO Conspicuous
collective environmental and social drivers might be determinant in Canada and in
consumption the UK.

Marie-Cécile Cervellon holds a PhD from McGill University, Montreal, u EDHEC Business School, 24 avenue
Canada. She is Associate Professor of Marketing at EDHEC Business School Gustave Delory, CS 50411,
in France. Her areas of research encompass sustainable consumption in 59057 Roubaix Cedex, France
high status and hedonic industries (luxury goods and services,
fashion, cosmetics, food and wine). ! Marie-Cécile.CERVELLON@edhec.edu

Lara Shammas was born in Baghdad, Iraq and moved to Canada in the early u International University of Monaco,
1990s, during the Gulf War. She studied at the University of Toronto with an 2 boulevard Albert II, 98000
Honors Degree in Mass Media and Communications and completed a Master Monaco
of Science in International Marketing, Communications and Brand Strategy at
the International University of Monaco. Today, Lara works in London at !
Jimmy Choo headquarters, as European Stock Coordinator.

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the value of sustainable luxury in mature markets

Rekindling dreams and pleasure does not absolve us of our responsibility, of our
duty to think clearly. Indeed, the luxury industry, which is more synonymous with
beauty than any other, must aim to be an example. We assume this responsibility
(Bernard Arnault, LVMH).

for long, sustainable luxury was considered an oxymoron, sustainability being


based on respect for the environment and society, luxury being wasteful and
careless. Yet, under the pressure of not-for-profit organisations (Cervellon, 2012)
and in response to several reports giving low grades to luxury corporations on
sustainability (Bendell and Kleanthous 2007; Moore 2011), more and more luxury
players integrate Corporate Social Responsibility and Corporate Environmental
Responsibility in their mission, objectives, strategy and concrete actions. Exam-
ples are LVMH, Kering/PPR home, Porsche or Richemont environmental and
social responsibility charters. Les Tanneries de La Comète (LVMH) uses vegetable
extracts to tan leather. More than 85% of Hennessy and Hine cognac (LVMH)
shipments worldwide are made by ship. Kering/PPR luxury goods, such as Gucci
or Sergio Rossi, use packaging made out of recyclable, Forest Stewardship Council
(FSC) certified paper. Porsche cars are built from the origin with 85% of their con-
tent being totally recyclable, in production facilities in which nearly 100% of all
waste can be recycled. More than 260 luxury Maisons such as Cartier, Piaget, and
Van Cleef & Arpels (Richemont) are certified by the Responsible Jewellery Council
which promotes the respect of ethical, social and environmental standards.
Sustainability is perceived now by consumers as a complementary model
to luxury, especially among the wealthy (Cervellon, 2013). Whenever a brand
is perceived as ‘making luxury’ in terms of craftsmanship, rare materials and
anchorage in its origins (local manufacturing, heraldic tradition of protection
of soil), luxury is complementary to sustainability, through sustainability in
ethos (e.g. eco-brands such as Stella McCartney (Kering/PPR) or Edun (LVMH)
in luxury fashion or Tesla Roadsters and Venturi luxury cars), commitment all
along the supply chain (Gucci group, LVMH, Porsche) and/or introduction of
eco-collection and eco-lines (BMWi3 electric cars, Vranken-Pommery Pop Earth
Champagne, Issey Miyake 132.5 origami design collection, Gucci sunglasses
made out of liquid wood produced from sustainably managed forests). In con-
trast, when a brand is perceived as ‘showing luxury’ due to overuse of the logo
and mass production, consumers cast doubts on the legitimacy and genuineness
of sustainable claims. Nonetheless, consumers expect that those luxury brands
would put their marketing skills to the service of good causes and give back to
nature and society. Philanthropy and cause-related marketing activities are not
considered by consumers as the degree zero of sustainability (Bevolo et al. 2009).
On the contrary, both ‘not doing harm’ and ‘doing good’ (Minor and Morgan
2011) are expected by luxury consumers (Cervellon, 2013). The integration of
these mottos, not doing harm and doing good, for the planet (environmental
responsibility) and people, workers, consumers and society at large (social and
ethical responsibility) are at the heart of the meaning of sustainable luxury.
Following a survey by the Luxury Institute (2009), 57% of wealthy Americans
would pay a premium for brands engaged in sustainability. However, little is
known on the value of sustainable luxury for consumers across cultures. Several

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researches tend to show that the values of luxury are homogeneous between
cultures (Hennigs et al. 2012 for a review). Yet, attitude toward sustainability
tends to be culture-bound. In particular, Cervellon and Carey’s (2011) study on
sustainable fashion and sustainable cosmetics provides evidence that some
cultures are eco-centred whereas others are ego-centred. Also, it appears that
sustainable consumption has become a new form of conspicuous consumption
in a number of cultures (France for instance; Cervellon and Carey, 2011). As
stated in The Independent by journalist E. Dugan (2008) ‘We used to spend our
money showing people how much money we have got; now we are spending
our money on supporting our moral concerns’: going green to be seen (Griskevi-
cius, Tybur and Van den Bergh 2010). Last, luxury entails a psychological cost,
the feeling of guilt, which is attached to the wide category of ‘guilty pleasures’,
these goods we purchase for pleasure but that post-purchase might yield nega-
tive emotions. The feeling of guilt attached to luxury is dependent on culture
(Cervellon and Carey, 2011). The law of Jante (Jantelagen) within Scandinavian
communities negatively portrays those people who display their achievements
through luxury goods. It is likely that guilt associated with luxury consumption
might be stronger in these communities.
In the next sections, we present the findings of an exploratory research meant
to understand the value of sustainable luxury in four ‘mature’ cultures regard-
ing luxury: France, Italy, UK and Canada. Americas and Europe represent still
more than 65% of the sales of luxury goods worldwide, although the highest
growth for the next five years is forecasted in China, India, Brazil, South Africa
and South East Asia (Bain and Company, 2012).

Methodology

Sample
Thirty-two persons participated in the research; eight per country. Snowball
sampling was used to constitute the sample: a friend would invite a friend to
participate in the study. The pre-requisite to be invited for interviews was to be
clients of luxury brands. All participants are upper middle class. All participants
are national residents of the country. Efforts were made to match groups on age
and gender (see Table 1).

Table 1  Sample for in-depth interviews

Cultural background Interviews Gender Age


Canada 8 5(M)/3(F) 26 to 56
UK 8 4(M)/4(M) 25 to 54
France 8 3(M)/5(F) 23 to 60
Italy 8 4(M)/4(F) 26 to 50

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the value of sustainable luxury in mature markets

ZMET technique
Participants were interviewed face-to-face or through Skype with semi-struc-
tured guidelines. Prior to the interview, they were instructed to collect 10 to 12
images that would represent luxury and 10 to 12 that would represent sustain-
able luxury. During the interview, participants discussed with the researchers
their choice of images. We used the ZMET methodology, a visual elicitation
technique, to unravel participants’ deep thoughts and behaviours (Venkatesh
et  al. 2010; Zaltman and Zaltman 2008). ZMET is ‘designed to surface the
mental models that derive consumer thinking and behaviour and characterise
these models in actionable ways using consumers’ metaphors’ (Zaltman and
Coulter 1995, p.36). The research design adhered to the different steps recom-
mended by Zaltman (1997) (see Table 2).

Table 2  ZMET research steps


Source: Zaltman, 1997

Step Description
1 Story telling: description of the content of the pictures; the relation
between the pictures and luxury/sustainable luxury
2 Missed images: description of images not found; meaning of luxury/
sustainable luxury beyond these images
3 Construct elicitation
4 Metaphor elaboration: what elements added to the pictures would
enhance meaning
5 Sensory images: use of non-visual elements to convey meaning
6 Comparison luxury and sustainable luxury: what does sustainable luxury
add to luxury?
7 The consensus map: summary of findings

The analysis of the data followed Grounded Theory (Strauss and Corbin,
1998). Along the data analysis process, several themes were identified as similar
or dissimilar between cultures. Particular attention was devoted in understand-
ing metaphors, in order to investigate the in-depth meaning of sustainable
luxury.

Results

Figure 1 presents an aggregated map of the mind of consumers regarding sus-


tainable luxury. The mind map is arranged along nine values which emerged
throughout the data. The values of sustainable luxury were interpreted from the
visual metaphors and participants’ discourses along these visuals. The same
values were identified across countries but they differ in their centrality. These

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values are organised at a higher level along socio-cultural values, eco-centred


values and ego-centred values.

Figure 1  The value of sustainable luxury in mature markets: a framework

Not doing harm

Doing good
Eco-centred
value
Hedonism

Durability
Ego-centred
value
Health and
Youthfulness

Guilt–free
pleasures
Socio-cultural
value
Conspicuousness

Belonging

National identity

Socio-cultural value

Conspicuousness
Conspicuousness is a value expressed through sustainable luxury in the four
cultures studied. When participants comment on their pictures, they refer to the
show-off aspects of luxury brands, their loud logos and the opulence which char-
acterises the industry. Yet, for sustainable luxury, conspicuousness is expressed in
a very different way between France, Italy and the UK on one side and Canada on
the other side. For Canadian interviewees, what makes the conspicuousness is the
luxury component, because ‘sustainable luxury is luxury’. As illustrated by one of
the pictures selected, a BMW i3 is a luxury product, unique, with, as added value,
the sustainable credentials. Almost all participants in the Canadian sample con-
sider that the link between sustainable and luxury is clear: the clients are wealthy.
On the other side, French and Italian participants express their conspicuous-
ness in relation to the product being ‘sustainable’. French and Italian partici-
pants comment on the importance to be in the trends, to show one cares for the
environment. They make a statement consuming green. Hence, they want their
contribution to society welfare to be noticed. This French participant comments,
Sometimes, I purchase luxury products when they communicate specific actions
in favor of the environment, like when brands give back a fraction of their profits
to a cause; What I like most though is the limited series which are developed just
to benefit a cause, like Gucci Tatoo bags. Because then, everyone knows I am com-
mitted to the protection of the planet.

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the value of sustainable luxury in mature markets

One of the pictures illustrates that in France luxury paper bags might be used
to make a statement.

Belonging
The aspect of belonging is also strong across cultures. For French, Italian and
British interviewees, belonging is more linked to connoisseurship, being part
of a group of initiés who know wine, fine food, and luxury brands without loud
logos. They cast doubts on some luxury products becoming sustainable because
they would lose their authenticity. A French participant states, ‘I chose a picture
of Dom Perignon. Yet, if Dom Perignon starts wearing the label organic, I will
stop purchasing. . . my peers also. We give tribute to an ancestral savoir-faire
when drinking this quality of champagne’. Appreciating the virtue (or lack of)
of sustainable products is also being part of a group of initiés, those who have
knowledge of luxury.
For Canadian interviewees, connoisseurship is much less present. Being edu-
cated on luxury is not an issue. Belonging is more about pertaining to a social
class which can afford purchasing luxury goods and sustainable products, both
having in common that they are expensive.

National identity
In old Europe countries (France, Italy, UK), the preservation of the heritage is
a very important aspect of sustainable luxury. Through participants’ pictures,
luxury is very much associated with history (e.g. first half of the 20th century in
France), place aura (e.g. London for British) and specific know-how (e.g. leather
craftsmanship for Italy). In relation to sustainable luxury, preservation of the
heritage is one of the advantages. French people associate very much sustain-
able luxury with images of vintage collections, 1950s cars, products which gain
value over the long term. Italians are very centred on know-how and manufac-
turing skills, as illustrated though the image of a sustainable yacht, Italian com-
panies being major players in this industry. The British tend to choose images
of their countryside, as illustrated through an image of the Stella McCartney ad
referring to the tradition of gentleman farmers.
For Canadians, the heritage is expressed as a collective heritage (nature)
which has to be preserved, rather than as a cultural heritage, part of the national
identity. Consequently, lots of visuals display natural settings, such as moun-
tains, rivers and forests.

Ego-centred value

Guilt-free pleasures
The literature (e.g. Cervellon and Carey, 2010) mentions the use of sustainable
products in order to compensate for a variety of misbehaviours regarding the
environment. For instance, women in our samples were putting forward their
lack of consideration for the planet when they take their bath or drive their cars
to go shopping next door. Sustainable luxury provides guilt-free enjoyment.

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Across cultures, the images which are most associated with sustainable luxury
are images of hybrid cars and yachts. Participants mention frequently the Por-
sche Cayenne hybrid. Driving four-wheel drive cars in Milan entails psychologi-
cal costs (i.e. the shame of polluting) which are reduced if the four-wheel drive
car is a hybrid car.
The guilt attached to luxury is stronger in French and Italian cultures. French
and Italians tend to elaborate on their feeling guilty when they wear fur coats or
when they drive 4WD cars. They also mention that the consumption of luxury
and expensive products is making them uncomfortable. A French participant
illustrates this point ‘In France, having money and driving a Ferrari is kind of
taboo, sexuality is not; in the US, it works the other way round’. Sustainable
luxury provides a comfortable answer to the issue of showing-off. In contrast, in
British and Canadian samples, there is no guilt in consuming conspicuously. As
long as people earn money, they spend the way they wish. They deserve reward
for their hard work.

Health and youthfulness


One of the advantages of sustainable luxury (fashion and cosmetics), strongly
put forward in France, Italy and the UK by participants is that those products are
better for people’s health. Yet, the meaning of health is slightly different across
cultures. In Britain (and Canada to a lesser degree), sustainable products are
perceived to be safer and less harmful for the organism because they respect
some standards regarding pesticides and additives. In France, the emphasis is
on body balance, fitness and youthfulness. Sustainable products would be less
harmful over the long term, would participate in the detoxification of the body,
and would help preserve one’s youth. In Italy, the emphasis is on beauty and
youthfulness. Sustainable products would be less aggressive for one’s genes,
more gentle regarding the skin and the body, and would enhance natural beauty.

Hedonic
Hedonism and pleasure is a major added value offered by sustainable products
across the four cultures. In particular, services which are considered sustainable
are perceived as being in tune with nature. Also, sustainability is associated
with slow life (e.g. taking the time to enjoy a meal, to get a massage, etc.), with
quality and with freshness for food. French and Italian participants both men-
tion that restaurants which are sustainable often grow their own vegetables and
purchase food from local producers. This enhances the perception of freshness
and quality of the products. In customers’ view, sustainable products are luxury
due to this added hedonic value. Yet, paradoxically, for luxury products, being
sustainable is a liability in terms of hedonic properties. Several participants in
the French and Italian samples comment on this reduced pleasure when using
sustainable luxury in these terms:
Organic might be good. But I will never purchase a Cru Bourgeois or a Grand Cru
organic. I am sure it does not exist. And anyway, the taste is not the same as the origi-
nal one, the one my parents, my grand-parents were drinking, with the sulfites in it. . .

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the value of sustainable luxury in mature markets

Also,
Yes Porsche has an hybrid Cayenne. But the Cayenne is certainly not a car I would
drive for fun. It is my family car. I have a 911 and it is not a hybrid version. . . When
I drive for pleasure, I want the real stuff.

Durable quality
In all samples, durability is one of the most important values of sustainable lux-
ury. Actually, participants mention that the stronger link between sustainability
and luxury is on the long-term use of products. The emphasis of sustainable
luxury is on quality and attention to details which make products resistant to
time. Actually, the vintage trend is linked with sustainability (i.e. not throwing
away, recycling, etc.) as much as with luxury (i.e. products gain financial value
as long as they age). A Canadian participant illustrates this value of durability:
They’re definitely linked, things that are luxury are long lasting, and that’s what we
define as sustainable. I’ve had my luxury goods for years; they’re durable and are
meant to be an investment. But I don’t think that everyone, especially Canadians
could make that link, because they’re technically opposite.

Durability has consequences on the protection of the environment. Yet,


across cultures, participants mention durability in relation to quality. They
emphasise the positive consequences for themselves of this durability: good
value for money (Canada), transmitting to their kids (France and Italy), long-
term pleasure (France and Italy).

Eco-centred values

Not doing harm


The protection of the environment and the protection of biodiversity are much
more present in the British and Canadian discourses. For instance, participants
mention golf as a sustainable activity which preserves landscapes. Lots of visu-
als also relate to corporations which have fair-trade (Starbucks) or non-animal
testing (Lush) policies. Visuals of green cosmetics do not necessarily relate to
health issues. A British participant mentions: ‘Lush is a brand, which uses
organic material. It’s better for us and it’s also better when we use the soaps
and other products because it doesn’t contaminate our water’. Also, in contrast
to French and Italian participants, British and Canadians integrate more dimen-
sions related to sustainability than the mere protection of the environment. For
instance, this statement by a Canadian woman:
It is really important to know where our diamonds come from and this Canadian
code of conduct does that exactly. We have to be sure that they’re fair traded and
consider who is affected in the process of mining them, it is such a huge problem
in the world today.

Additionally, in the Canadian sample, sustainability is linked to technological


progress. Lots of visuals emphasise the role of technology in the protection of

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the environment. A visual of Steve Jobs with a computer in hands illustrates


that the digitalisation of information makes the world become more sustainable.

Doing good
Giving back through philanthropic actions is also related to sustainable luxury.
For instance, a Canadian participant states ,
. . .there’s these guys I think their company is called Tinge Trees, and they made
these nice, not the most luxurious t-shirt, they’re a bit more than the average t-shirt,
which is a little bit of a luxury. They plant 10 trees for each t-shirt sold. So it’s not
the product itself that’s eco-friendly, but the business model is.

In particular in France and Italy, participants mention that it is the only way
for many corporations to contribute to the welfare of the planet and society.
They do not believe in luxury brands becoming sustainable, from one day to the
other. They do not expect them to become sustainable either. Yet, they expect
that a ‘fraction of the immense revenues’ of these corporations operating in
the luxury industry would be invested in projects in favour of the environment
and society. Participants also mention that contributing is not only about giv-
ing money but also about giving time and energy through the organisation of
events and specific actions in favour of sustainability. Do-nating (giving time
and investing competencies) rather than donating (giving money). Pictures
illustrate how brands might become sustainable through their contributions
to causes, with Gucci limited edition organic tee-shirts (revenues supposed to
be given to a cause) and Armani Red.

Discussion and implications

In contrast to the centrality of environmental and social/ethical values (not


doing harm, doing good) embraced by brands and advocated by the clientele
of sustainable luxury, our results indicate that the values of sustainable luxury
encompass also two categories focusing on the consumers’ individual and
social motives, socio-cultural values (conspicuousness, belonging and national
identity) and ego-centred values (guilt-free pleasures, health and youthfulness,
hedonism, durable quality). These individual drivers to the purchase of sustain-
able luxury might be central in several cultures (Southern Europe) while collec-
tive environmental and social drivers might be determinant in Canada, in the
UK and probably also in Northern Europe, Scandinavia for instance.
Ego-centred values are more important in French and Italian samples, in
particular in relation to the guilt-free enjoyment and compensation for misbe-
having regarding the environment provided by sustainable luxury (Cervellon
and Carey, 2011). As mentioned by Morand (2004), luxury consumption entails
guilt in Christian cultures whereas in Calvinist cultures, earning money and
spending it in luxury is considered as a reward for good work (Morand, 2004,
p.259). This might explain the role sustainable luxury has to play in relieving

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the value of sustainable luxury in mature markets

the guilt in our French and Italian samples. Also, the emphasis in the Italian
and French samples is very strong on natural beauty and natural youthfulness
provided by sustainable products over conventional ones. Last, in the French
and Italian samples, there is an added hedonic value of sustainability over con-
ventional products due to the perception of an enhanced freshness and quality
of raw materials and ingredients. This elevates sustainable products to being
perceived luxury (for food, cosmetics and fashion for instance). But paradoxi-
cally, the hedonic value is decreased for products and services which have a
position in the luxury sector, for instance wine, gourmet food, luxury cosmetics,
couture, prestige cars. Sustainability might be a liability for hedonic prestige
products. This result has to be investigated further.
Socio-cultural values are present across the four samples, yet they differ in
meaning between old Europe cultures and Canada. In old Europe, sustainable
luxury helps preserve the cultural heritage and national identity of luxury. In
Canada, it is a determinant of the preservation of our collective heritage, the
beauty of nature. Also, in old Europe, conspicuousness is expressed though
the sustainable property of the good. Sustainability enhances the prestige of
the good, in line with Griskevicius et al. (2010): ‘going green to be seen’. In
Canada, sustainable luxury is luxury. The conspicuousness is not enhanced by
sustainability but rather by the status-laden nature of luxury.
Eco-centred values are more central to the British and Canadian samples.
This corroborates findings on sustainable cosmetics and fashion (Cervellon and
Carey, 2011) which tend to show a higher importance in the protection of the
planet in some cultures (Canada) in comparison to others (France). In particu-
lar, participants in Canadian and British samples consider more dimensions to
sustainability aside from the protection of the environment. They mention fair-
trade and the protection of the workforce, non-animal testing and the protection
of animals, as central issues when a brand wishes to achieve sustainability. Also,
across samples, altruism and philanthropic actions, not only in giving money,
but in giving time and energy, is considered important for participants. This
finding corroborates Cervellon (2013) investigation of sustainable luxury among
the wealthy. Philanthropic actions are not considered as the zero-degree of sus-
tainable luxury, but as a legitimate option to be considered by brands wishing
to make a contribution to the welfare of society.
This framework expands that of Hennigs et  al. (2012) focused on luxury.
Some luxury values are enhanced through sustainable luxury (durable qual-
ity, conspicuousness); other values are not present in Hennigs et al.’s (2012)
luxury value framework because they originate from the sustainable nature of
sustainable luxury, such as eco-centred values and some ego-centred values
(guilt-free pleasures and health/youthfulness). Our results indicate that these
values are present across the four samples, yet, with nuances in meaning and
different centrality between cultural groups. Our framework also expands tra-
ditional models mapping the values of sustainable goods and services, which
often focus on society’s welfare rather than on individual, ego-centred motives
for such purchases.

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This research is exploratory in nature. The conceptual framework (Fig. 1)


which is drawn from our findings should be tested with large samples across
cultures. In addition, it is important to compare the values of sustainable luxury
between mature and emergent markets, and between cultures which have a dif-
ferent orientation along Hofstede dimensions, regarding luxury and regarding
sustainability, such as for instance masculine cultures (Japan) and feminine
ones (Sweden), or collective cultures (China) and individualistic cultures (USA).
We hope that this research opens fruitful avenues for researchers who involve
themselves in researching issues related to sustainability.

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