Companies across industries are facing major challenges that, if left unaddressed, will have an impact on the resilience of existing business models. These challenges—climate change and biodiversity loss, new technologies and automation, and rising economic inequality—have specific implications for the luxury sector.
Climate change and biodiversity loss are affecting the supply of precious raw materials, as well as the resilience of the sector’s infrastructure; new technologies and automation are redefining the manufacturing process, retail experience, and nature of work; and rising economic inequality means luxury brands will need to re-affirm their value, particularly in emerging markets. Given the luxury sector's role as influencers and trendsetters and its reliance on well-functioning ecosystems, what is the role of luxury to enable and help drive environmental and social progress?
This report from BSR’s Responsible Luxury Initiative offers a roadmap toward a resilient luxury sector and highlights three opportunities for luxury companies to invest in future success.