Inclusive luxury: An Oxymoron or a Catalyst for Social Change?
Written by Dina Khalifa
The Luxury industry is a highly influential sector owing to its immense cultural capital, global customer awareness and high visibility. Despite the market turbulence caused by the pandemic, which resulted in a 23% decline in sales during 2020, the global market for personal luxury goods is expected to increase from US$309.6bn to US$382.6bn over the period 2021-25, bouncing back from pre-pandemic levels – and more (source). However, as societies face growing socio-political challenges, luxury brands face a “crisis” of purpose. By learning from, and adopting, social entrepreneurship, luxury brands can address this crisis and become powerful agents of change.
The true essence of the luxury strategy lies in inherent elitism, exclusivity and restricted accesses preserved for the “happy few”. As crises in public health, climate, economic inequality and environmental pollution impact the vulnerable most severely, however, business as usual for the luxury industry risks appearing out of touch. Products designed exclusively for economic elites flaunts a kind of inequality that exacerbates and aggravates social divides, placing pressure on luxury brands to re-evaluate their purpose and reflect on their true essence.
Expectations of luxury brands are also shifting as customers and stakeholders look to them for leadership on issues of global concern. To protect the legitimacy of the luxury industry, luxury brands should become better agents of social change by aligning their mission, values and strategies to social purpose. Purpose-driven businesses serve not only shareholders but a wider range of stakeholders including employees, customers, suppliers, local communities, society-at-large and the planet.
With interest in the social purpose of companies expected to maintain momentum, an opportunity arises for luxury brands to enhance their role in driving positive social change. In embracing this opportunity, luxury brands may seek to foster collaborations and partnerships with fashion social enterprises which champion creating positive social impact by providing employment opportunities to marginalised communities and empowering artisans through the preservation of traditional skills.
This was exemplified by Maria Grazia Chiuri, the creative director for Dior, one of the world’s most well-known luxury brands. Chuiri hosted the house’s Autumn 2023 collection in Mumbai, India. This collection celebrated the virtuosic craft of Mumbai’s Chanakya atelier and non-profit School of Craft, known for its traditional hand embroidery techniques which featured prominently in the collection. Moreover, for her 2024 Cruise collection held in Mexico City, Chuiri delved into the ancestral and local know-how of the region by working with local artisans and fostering a collaborative and co-creative environment, where knowledge was exchanged. These collaborations with fashion social enterprises, not only celebrate artisanal traditions, but they also show commitment to preserving local craftsmanship.
Driven by principles rather than profits, luxury brands should strive to operate as social enterprises, by advocating for socio-economic change through the adoption of transformational practices and sustainable business models including sustainable sourcing, fair labour practices, reduced carbon footprints, and support of local communities. This approach can enhance the brand's reputation and attract consumers who prioritise ethical consumption.
This is an opportune moment for luxury companies to advocate boldly for social change. By working together, and with fashion social enterprises, strategies can be explored to reconcile luxury and inequality within a framework and set of partnerships that contributes to a fairer, more sustainable world.
Dina Khalifa
Dina is an experienced academic in the areas of luxury branding and marketing with more than 14 years of teaching and research experience in both the UK and Egypt. She has a PhD in luxury brand marketing with a focus on consumer responses to identity threats and social exclusion. Dina is currently a senior lecturer in Marketing at the University of Roehampton, London. Dina won the Prestigious Prince of Wales Global sustainability fellowship at University of Cambridge Institute for Sustainability Leadership (CISL) where she looked into the role of the luxury sector in fostering social inclusion.