Supply_Chain_GoGreen

Forget red carpet and go green

18 May 2016
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It’s Fashion Revolution time! Ethical issues are pushing a real change in the fashion/luxury market.
Consumers are aware and choose brands in which they recognize their values.
Many ONGs proved the lack of effort in the fashion market, e.g.:
Greenpeace Detox and Clean Clothes campaigns highlight the need of transparency in the supply chain to guarantee ethically correct purchases to customers
Fashion Transparency Index ranks brands according to the level of transparency and shows little or no evidence of significant efforts in making supply chains more ethical in luxury market
Fast Fashion market seems to be more likely to improve transparency and share with consumers their attention toward environment (H&M probably talks about sustainability more than any others, has a Conscious collection, encourages recycling with discounts).
After Rana Plaza disaster the system is more aware and puts real effort towards sustainability (e.g. SMI has announced guide lines to create transparent supply chains to ensure high safety standards for clients and environment) but luxury brands have a long way to go.

It seems that luxury brands wonder how sustainable strategies could influence negatively their luxury image. Does buying ethical mean to sacrifice style? Is this ethic behaviour just a fleeting trend?
The only certainty is that customers rule the market and now are telling you that sustainability, together with quality, exclusivity and craftsmanship, makes the difference when buying luxury (as found in True-Luxury Global Consumer Insight). For the customer sustainability means respect of environment and animals, use of safe materials, protection of workers and promotion of social activities.
The challenge for brands is not just investing to make supply chains more ethical but they have to be able to reflect and share customers values and communicate their effort towards sustainability.
At the end customers perception should change from “This product costs X” to “This product is worth X”

"Go green" example

“Go green” example

18 May 2016
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Author Francesca Borgonovo Digital Analyst

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