Luxury brands and business schools face increasing pressure from millennial and generation-Z consumers to prioritize sustainability and ethical practices.
European business schools have long been a valuable source of talent for the global luxury goods sector. However, as the demand for sustainable and ethical practices grows among millennial and generation-Z consumers, luxury brands and the institutions that teach about the industry are facing new challenges. Students are increasingly conscious of climate change and are eager to align themselves with brands that prioritize sustainability. In response, European business schools are adapting their luxury programs to equip students with the knowledge and skills necessary to navigate the evolving landscape of the luxury industry.
1: The Rise of Sustainable Consciousness
Millennial and generation-Z consumers are driving the demand for sustainable luxury goods. According to a survey by Boston Consulting Group and Altagamma, 72% of generation-Z consumers consider a company’s commitment to sustainable development when making purchasing decisions. This heightened awareness of sustainability is reflected in the concerns expressed by students enrolled in luxury programs. Representatives from luxury companies often face questions about sustainability initiatives and policies during presentations to students. Sustainability consistently emerges as a central theme in student research projects.
2: Equipping Students for Sustainable Luxury
To meet the demands of the industry and students, European business schools are incorporating sustainability into their luxury programs. Barbara Slavich, academic director of the Master in Fashion Management at Iéseg in France, emphasizes the importance of equipping students with knowledge of ethical business practices, environmental expertise, and an understanding of sustainable materials and processes. Students must also grasp concepts such as lifecycle analysis and new ownership business models from the circular economy.
3: Specialized Programs and Initiatives
European business schools are launching specialized programs and initiatives to address the growing demand for sustainable luxury management education. In 2024, Audencia Business School will introduce the first specialized MSc in sustainable luxury management at its new Paris campus. The program aims to align business skills with sustainable thinking, enabling graduates to make companies more sustainable and profitable. Other schools, such as Grenoble Ecole de Management, offer study trips focused on sustainability and innovation in the fashion and luxury sectors.
4: Luxury Brands Embrace Sustainability
Luxury brands are also recognizing the need to prioritize sustainability. Previously, only a few premium brands placed sustainability at the heart of their business strategies. However, the COVID-19 pandemic has accelerated this trend, with many luxury brands now striving to become sustainable champions. They are hiring chief sustainability officers, organizing sustainability events, and setting ambitious goals to reduce their carbon footprint. Clients are increasingly inquiring about raw material sourcing conditions, traceability, and production locations.
Conclusion:
European business schools are adapting their luxury programs to meet the growing demand for sustainable and ethical practices in the luxury goods sector. Students are increasingly conscious of sustainability and expect luxury brands to prioritize ethical and environmentally friendly practices. By equipping students with the necessary knowledge and skills, business schools are preparing future leaders to make a positive impact in the industry. As luxury brands embrace sustainability, the industry as a whole is undergoing a transformation, driven by the values and expectations of the next generation of luxury consumers.
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