Lifeworth Consulting » luxury

Elegant Disruption – how luxury and society can change each other for good

Jem Bendell — Thu, 06 Sep 2012 09:55:14 +0000

Just over five years ago I began working on the luxury industry. I thought, why cant these elite brands not excel in social and environmental performance? I researched, wrote and produced the report Deeper Luxury for WWF-UK, and it triggered a bit of a furore in the fashion press and wider luxury industry (about 8000 sites now link to the report). 5 years on, I’ve helped some luxury companies with their social and environmental impacts. But I havent seen much change. Some large firms like PPR have embraced the agenda, although we wait in anticipation for more results, in terms of positive social and environmental outcomes. In the 5 years, what inspired me the most were the entrepreneurs I met. People who were creating businesses to address social and environmental problems, and targetting the luxury segment as a way to do that. I began to realise something might be in this – that these entrepreneurs might be shaping the future of luxury, and that they might be revealing a new way we can engage in social change. In the new study, I profile sustainable luxury firms Elvis and Kresse, Tesla Motors, Shokay, Source4Style, Rags2Riches, Positive Luxury, Timothy Han and Nue Luxe… It’s called “Elegant Disruption: How luxury and society can shape each-other for good”. It took about a year to write, as it involved a lot of conversations to understand just what the potential of luxury might be to influence social change. Ill be presenting it at conferences in Brisbane and Barcelona in the coming weeks.

Abstract, August 2012:

From http://www.griffith.edu.au/business-government/asia-pacific-centre-for-sustainable-enterprise/publications/working-paper-series/issue-9
This paper outlines the contemporary luxury sector, showing it is global, thriving and influential. It shows how creative destruction is typical in most industry sectors, including luxury, and how disruptive innovation by entrepreneurs is key to that process. It proposes that the current time is potentially disruptive for incumbent luxury brands and groups, due to five key trends that are beginning to re-frame the markets that luxury brands sell to. Sustainable luxury entrepreneurs from USA, UK, Philippines, India, Argentina, China and Hong Kong are profiled and described as pursuing “elegant disruption”: a well-designed intervention in markets that both uses and affects aspirations in ways that change patterns of consumption, production or exchange, for a positive societal outcome. The paper reviews the response of mainstream luxury brands to the sustainability agenda, proposing some possible reasons why they appear to be encumbered in embracing this agenda fully. Some of the paradoxes in the notion of “sustainable luxury” are described, in order to draw implications for both the luxury industry and people interested in positive social change. The paper draws upon the authors five years of interaction with the luxury industry on sustainability issues, and is therefore written as a “first person inquiry” and draws upon principles of “appreciative inquiry” in documenting the breakthrough approaches of some sustainable luxury entrepreneurs.

Future of Luxury on the Horizon in Latin America

Jem Bendell — Thu, 10 Nov 2011 04:34:31 +0000

The world’s first sustainable luxury award winners were announced in Buenos Aires earlier this month. The awards recognise outstanding leadership towards sustainable luxury, and are open to any company with a business connection to Latin America. All the winners were small enterprises, which indicates how entrepreneurs, and their young companies, are embracing sustainability to move ahead in the luxury sector. “The history of luxury is a history of entrepreneurs innovating new products, services and approaches that resonated with the aspirations of their time. Therefore, as social and environmental awareness grows worldwide, the luxury brands being created today may be the major global names of tomorrow,” explained Professor Jem Bendell, founder of the Authentic Luxury Network, a co-organiser of the awards.

The winner of the Best Sustainable Luxury Performance in Latin America in the fashion and accessories category was Pachacuti. The British-based company works with indigenous communities in Ecuador to produce fairly traded high-end panama hats. The Paris-based Ainy won the award for beauty company. It works with Latin American producers to sustainably harvest key ingredients. Argentine company Perma Hue won the award in the tourism sector. An eco-resort in Patagonia, Perma Hue seeks to promote the wellbeing of their visitors through re-connecting with nature. In the jewellery sector, a special mention was given to Oro Verde, not as a company, but as a community cooperative, pioneering the production of ethical gold. They work with Afro-Colombian communities to support small-scale alluvial mining operations in the Choco region of Colombia. Oro Verde™ have pioneered an environmentally sustainable, socially responsible form of artisanal mining that seeks to preserve the unique and vital virgin rainforest ecosystems while providing a fair, regular source of income to miners, their families and their communities. Also for work on jewellery, a special mention was made of Ian Doyle, from Lifeworth Consulting, for his research on a new agenda for responsible jewellery, focusing on social development. A spanish version of his report “Uplifting the Earth” was launched at the awards.

Dana Thomas presenting at the awards

In a talk before the awards, author of the best-selling “Deluxe”, Dana Thomas, explained that the “luxury industry” is an oxymoron, as luxury is about something rare and special, and with a living heritage embodied in its productions processes today. In his talk, Professor Jem Bendell explained that the history of most industries is the history of creative destruction of incumbent companies and brands, so that we should expect to see new luxury brands emerge because of the disruptive potential of the internet, sustainability challenges, and changing patterns of cultural exchange.

The award to Perma Hue was presented by Maria Eugenia Giron, former CEO of Carrera y Carrera, and author of “Inside Luxury”. Award winners received a leaf bowl of Palo Santo wood carved by the Wichi aboriginals of the Argentine North East. The awards were judged by Maria Eugenia Giron (IE Business School), Dana Thomas (best-selling author), Eduardo Escobedo (United Nations, UNCTAD), Summer Rayne Oakes (Source4style),

Awards Judge Maria Eugenia Giron with winners from Perma Hue

Renata Black (7 Bar Foundation), Ana Laura Torres (Centre for Sustainable Textiles) and Professor Jem Bendell (Lifeworth / Griffith University / Authentic Luxury Network).

The main Argentine newspaper covered the event and the winners. Awards organiser Miguel Angel Gardetti announced that the awards would stay in Argentina for one more year, but extend their reach in nominations and coverage. Further information on the winners, the speakers, the awards, and others working on sustainable luxury, is available at: http://www.authenticluxury.net

Professor Gardetti and Professor Bendell, founders of the awards

Nominations for the 2012 Sustainable Luxury Awards should be sent to www.lujosustentable.org

Talk on Sustainable Fashion, Geneva, June 3rd

Jem Bendell — Sun, 23 May 2010 17:48:13 +0000

Lifeworth’s director, Dr Jem Bendell, is giving a talk, organised by the University of Geneva and MHCInternational.

“Sustainable Fashion. The future of Luxury “

June 3, 2010, at midday.

Registration required: http://events.constantcontact.com/register/event?oeidk=a07e2ohoocub7bd368f

Why listen to Jem? http://www.nytimes.com/2008/11/26/style/26iht-luxury08-bendell.18173199.html

What else do we do on this? http://www.lifeworth.com/consult

Want to read about the topic? http://www.deeperluxury.com

Want to work on this topic? http://www.authenticluxury.net

If you would like a seminar on this topic for your own organisation, email connect[at]lifeworth.com to arrange a time to discuss.

See Jem in a CNBC documentary on this topic:

Click here to view the embedded video.

More info on these CSR Thursday lunchtime talks is at www.corporateresponsibility.ch