The luxury industry has specific characteristics that set it apart from non-luxury, making non-luxury research not fully transferable into a luxury context. In our work, we conduct qualitative interviews with stakeholders and senior executives from some of the most important brands in luxury. We find that CSR and luxury are compatible and that CSR contributes to BV within luxury. We also identify how CSR is and could be positioned to maximize BV. Our findings not only contribute to the literature on BV, CSR and luxury, but highlight the strategic importance that CSR has for BV in luxury and make a case for the industry to embrace it. Our findings are especially relevant now that the industry is facing significant financial pressures as a result of the Covid-19 pandemic, which make it essential for luxury brands to look into ways to increase their BV.
Within luxury, the most valuable asset is brand value (BV). Non-luxury research has identified Corporate Social Responsibility (CSR) as one of the factors influencing BV. Luxury has not been typically associated with sustainability, but due to recent pressure from consumers and stakeholders many luxury brands are working toward implementing CSR initiatives.
Table of Contents
Corporate Social Responsibility and Brand Value in Luxury: Industry Perspectives
Introduction
Theoretical Background
Key Characteristics of Luxury
Brand Value
Ethical Concepts
Benefits of CSR Implementation
How is CSR Approached within Luxury?
Methodology
Selection of Interviewees for Exploratory Interviews and ‘Credibility Checks’
Interviewing and Analytic Approach
Results and Discussion
Exploratory Interviews
‘Credibility Checks’
Conclusion
Theoretical Contribution
Practical Contribution
Research Objectives and Core Themes
The primary objective of this research is to examine the strategic role of Corporate Social Responsibility (CSR) in influencing brand value (BV) within the luxury industry. By moving beyond non-luxury perspectives, the study seeks to understand how luxury brands currently pursue CSR initiatives and how these actions are positioned to generate long-term value, especially amidst economic pressures.
- The compatibility between traditional luxury values and CSR principles.
- The strategic motivations behind CSR adoption in luxury firms.
- Identification of common CSR implementation approaches in the luxury sector.
- The relationship between CSR activities and long-term brand value (BV).
- Barriers and challenges to effective CSR integration in high-end markets.
Excerpt from the Book
Key Characteristics of Luxury
Luxury is different than other industries and marketing contexts due to its specific attributes and associations (Holmqvist et al., 2020), and the fact that each consumer perceives luxury differently, which makes it a subjective concept (J. N. Kapferer & Laurent, 2016). Key physical attributes of luxury include high quality, design, limited supply, design and excellence (Hoffmann & Coste-Maniôre, 2012; Nueno & Quelch, 1998; Vigneron & Johnson, 2004).
Among its psychological attributes are its experiential, hedonic and dream factors (Chevalier, 2012; J. N. Kapferer, 2009; Tynan et al., 2010), and its association by consumers with upper class and prestige conferral (Banister et al., 2020; Chevalier, 2012; Lee & Bolton, 2020; U. Okonkwo, 2009; Tynan et al., 2010). Given the subjectivity of the concept of luxury, luxury can mean different things to different people. Chevalier (2012) proposes an inclusive definition of luxury which considers that all brands that are credible, well known and respected are luxury. Chevalier’s definition does not explicitly distinguish between products or services and fails to incorporate the association of consumers with upper class and prestige. Thus, in this study, we build on Chevalier’s work and consider luxury as a product or service that is well known, credible or respected that can be associated by consumers with upper class and prestige.
Summary of Chapters
Introduction: This chapter introduces the research context, highlighting the increasing importance of CSR for the luxury industry and the identified research gap regarding the impact of CSR on brand value.
Theoretical Background: This section provides a foundation by exploring luxury characteristics, defining brand value, analyzing ethical concepts like stakeholder theory, and reviewing existing literature on CSR implementation and strategic positioning.
Methodology: This chapter outlines the qualitative approach utilized, including the selection of interviewees, the use of exploratory interviews and 'credibility checks' to validate findings, and the analytical framework applied to the interview data.
Results and Discussion: This section details the study's findings regarding the compatibility of CSR and luxury, the motivations for CSR implementation, and the specific strategic approaches adopted by luxury firms.
Conclusion: This final chapter synthesizes the research by highlighting the theoretical and practical contributions, proposing a new category for CSR positioning, and suggesting directions for future studies.
Keywords
CSR, corporate social responsibility, sustainability, luxury, brand value, brand equity, stakeholder theory, strategic positioning, ethical consumption, qualitative research, luxury industry, brand assets, management.
Frequently Asked Questions
What is the core focus of this research study?
The study investigates the relationship between Corporate Social Responsibility (CSR) and Brand Value (BV) within the luxury sector, exploring how firms manage these ethical commitments.
Which sectors of the economy are central to the study?
The research is centered on the luxury goods and services industry, including apparel, jewelry, hospitality, and accessories.
What is the main research question?
The primary inquiry is whether CSR is compatible with luxury and how luxury brands can strategically position CSR initiatives to enhance their brand value over the long term.
What methodology does the author employ?
The study uses a qualitative research design, conducting 21 exploratory interviews and subsequent 'credibility check' interviews with industry stakeholders, senior executives, and brand managers.
What topics are explored in the main body of the text?
The main body examines luxury characteristics, defines brand value, discusses ethical concepts, analyzes current CSR approaches in luxury, and presents findings from expert interviews.
Which keywords best describe this publication?
Key terms include Corporate Social Responsibility, luxury, brand value, sustainable luxury, stakeholder theory, and strategic management.
How do luxury brands typically view the conflict between CSR and their business model?
The findings suggest that the industry considers CSR and luxury to be fully compatible, provided that the long-term vision of the brand is maintained.
What is the proposed addition to Crane's (2014) model?
The authors suggest a fifth category, 'CSR as a branding activity', to better align existing strategic positioning models with the specific needs of the luxury industry.
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- Ramon Bravo Gonzalez (Autor:in), 2021, Brand Value in Luxury. Industry Perspectives, München, GRIN Verlag, https://www.grin.com/document/1033531
