The Age Of Philanthropy- Luxury Brands and CSR 1/10/10

A few weeks ago, we talked about Corporate Social Responsibility in China. Personal philanthropy is all the rage among the Chinese ‘nouveau riche’ at the moment, and consumers are increasingly conscious of corporate generosity- or lack thereof. But its not just China, consumers all around the world are calling for greater transparency and it may be time for high-end labels to pick up their game. Luxury brands have been surprisingly slow to respond to this attention to their actions, with a few exceptions, see Bulgari.

This week, the World Jewellery Confederation released a ‘Responsible Luxury’ report, analysing the development of CSR in the jewellery industry. Contrasting Tiffany & Co’s proactive efforts with De Beers’ notoriety for buying ‘conflict diamonds’, it has created a stir and shone some light on important social issues.

Interestingly, the luxury industry usually escapes regulation. With the exception of labour standards within individual countries, it is tricky to police the sourcing of materials from all over the world. Often consumers don’t actually think about where the materials come from. All this is changing. With increased attention to what goes on behind the scenes, it seems that consumer demand will regulate just fine. Brands such as Cartier, Tiffany, Rolex and Chopard can use their ‘Forever mark’, which guarantees their product was produced with integrity, in their marketing, and everybody wins.

Consumers don’t want luxury that has been tainted. There’s nothing glamorous about a human rights violation.

Thailand Agrees- Fakes Are For Frauds! 17/9/10

Thailand has made a dramatic stand against counterfeit goods, burning over 80 tonnes of fakes. We’ve made it quite clear where we stand on this issue– ‘fakes are for frauds’ has become something of a slogan here at MO Luxury. We are pleased by Thailand’s recent demonstration of their commitment to observing intellectual property rights. In destroying fake goods, the Thai government has made a public stand against further production, and delivered a significant blow to the entire ‘fakes’ industry. Counterfeiting is finally being taken seriously.

Research has shown that people will pay twice as much for an item when they think they use it to send cues about their wealth and taste. When consumers can’t afford the original, the fakes do the job just fine. To us, this distorts, and somewhat undermines, everything that luxury brands stand for. Because it implies that the goods some people pay thousands for, aren’t worth the price tags they carry- and they are. We know that when we buy luxury, we are paying for the very best. A handbag from Louis Vuitton is so much more than a nice print, and if you can’t see that, then you probably shouldn’t be buying one in the first place. The price tag signifies the finest and purest of materials, innovation, and thousands of years of heritage. Don’t even get us started on comparing manufacturing processes and labour standards. Contemplating a harmless bargain? Think again.

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Luxury Brands Go Eco 10/9/10

It seems that calls for luxury brands to show corporate social responsibility are being answered! In the lead up to London Fashion Week, the Environmental Justice Foundation is releasing a series of organic, fair-trade T-shirts alongside big names like Christian Lacriox, Alice Temperley, Luella and Katharine Hamnett. It’s a golden age for eco-fashion in London, with the Environmental Justice Foundation setting up a pop-up shop to sell the ethically made T-shirts, designed to draw attention to the plight of child labourers in Uzbekistan. Aside from looking great, these T-shirts are also making the labels they represent look great! Much of the child labour in Uzbekistan involves cotton farming, and we don’t need to explain the importance of cotton to the fashion industry. Most people probably don’t consider where all these fine materials actually come from, so it’s nice to see labels with some cachet shining some light on important global issues.

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Bulgrai Pledges $7.4m To Save The Children

Save the Children announced today that Bulgari have pledged $7.4m (AUD$8.1m) to Save the Children’s commitment to provide quality education programs around the world during 2011. Just the other day, we commented on how much luxury brands could benefit from such action. This is a contribution to a great cause that will also undoubtedly do wonders for their bottom line. It will be particularly interesting to see how this effects the brand’s popularity in China- see Luxury Brands & CSR.

Critics will be critics, and already bloggers have accused Bulgari of ‘using’ philanthropy to their own advantage. Let us ask this: does anybody care? Children who wouldn’t otherwise, will now get the chance to go to school. As far as we are concerned, everybody wins! What’s more, this act of charity will not expire come next year’s campaigns, by training teachers, Save the Children can provide communities with a sustainable resource for educating children in years to come. In addition, we look forward to the newest Save the Children ring- proceeds to go to back into the program.

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Luxury Brands & Corporate Social Responsibility in China- philanthropy, or good public relations? 2/9/10

As the MO Down has already touched on in the past few weeks, China is set to become the world’s largest consumer of luxury goods by the year 2015. As far as the Chinese market is concerned, brands may be forced to, quite literally, help people eat, or be eaten.

Luxury brands will need to compete to assert themselves in this increasingly lucrative market, and it will be interesting to see how they realise the image potential that lies in their CSR. Personal philanthropy is all the rage for the Chinese elite at the moment, and consumers are becoming increasingly aware of corporate generosity- or lack thereof.

A survey of 1100 shoppers in China, Hong Kong and Taiwan, conducted by Albatross Global Solutions and Ruder Finn Asia, found that CSR would influence brand loyalty in 2/3 cases. This seems a golden opportunity for brands to capitalise on doing good. The ‘nouveau riche’ of China are indulging in luxury brands and flaunting their status to distinguish themselves, but are likewise under enormous social pressure to be charitable. As luxury, status and charity become inextricably linked in China, luxury brands will be scrutinised, and perhaps crazy, for not following suit.

Several luxury brands have already showed initiative- Bulgari released a ‘save the children’ charity ring, and Gucci have switched to environmentally friendly packaging. See It seems that the title of most charitable luxury brand may become a coveted one- May the best man win!

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