Sustainable Luxury: Consumer Responses to E-S Pillars Integration in Fashion Brand Strategies

The luxury fashion sector is experiencing a significant transition due to the impact of sustainability and ESG (Environmental, Social, Governance) principles. This dissertation analyses the integration of E-S pillars of ESG by luxury brands into their operations and reporting, and the subsequent effects on consumer responsiveness and perception to these adopted practices. A mixed-methods approach integrates the collection of quantitative survey data from luxury consumers with qualitative insights derived from interviews with industry professionals. Two principal hypotheses are being analysed in this research: (i) increased consumer awareness of ESG practices predicts greater susceptibility to sustainable initiatives, and (ii) regional and demographic (age) variations substantially influence consumer responsiveness of ESG practices in luxury fashion. The study highlights the significance of sustainability standards as essential frameworks in influencing the beforementioned dynamics. The results statistically corroborate these hypotheses. Regression analysis indicates a positive correlation between ESG familiarity and consumer responsiveness and ANOVA results underscore geographic differences in ESG-related initiatives. Survey data reveals that younger generations emphasize sustainability, with numerous individuals indicating a willingness to pay a premium for ESG-compliant products. Interviews suggest that luxury firms meet difficulties in reconciling sustainability with exclusivity, transparency, and the use of circular economy solutions. This study enhances the comprehension of ESG integration by connecting business strategies with customer perception and highlighting the essential function of standardized frameworks in fostering sustainability within the luxury sector.