Eco-FocusDrives LuxuryMarket

Consumer focus on sustainability is fueling today?s luxury sector

In fact,75% of affluent Americans say they would pay more for an eco-friendly and sustainable brand,according to luxury consulting company Agility Research & Strategy?s TrendLens survey released in April 2022 When it comes to Gen-Z respondents,58% say they prefer recycled products,according to financial services company Cowen?s July 2021Intern Survey,which also found that 56% want greener transport On top of this,Coresight Research cited sustainability as one of the top five forces in its RESETFramework of important retail trends for 2022 and beyond

The luxury consumer is changing,with millennials and Gen Z making up a large portion of the sector,says Hemant Kalbag,managing director,Alvarez & Marsal Consumer Retail Group,a professional services firm ?Millennials and Gen Z are much more motivated by sustainability as part of that decision-making,versus Gen X That?s having an impact on how companies need to think about luxury goods?

Consumers are expecting to find eco-friendly products, spurring companies to make directional changes,Kalbag says But ?we?re probably still maybe five to seven years away from that translating into full transparency between a manufacturer for luxury goods and the information that?s available to a consumer,?he says

Designers are responding to growing consumer interest in the environment by offering green-friendly handbags, homes,cars,watches,and yachts ?The sustainable home is becoming the norm,?says Milton Pedraza,founder and CEOof research,consulting,and education firm Luxury Institute ?Wealthy people are demanding that they get that from home builders,and when they refurbish or renovate homes,they?re installing those kinds of very energy efficient,aesthetically pleasing,sustainable kinds of products?

Large technology companies are getting in on the action Samsung,for example,is rolling out its Bespoke Home collection,which offers ?everyday sustainability?

Far left: An ultra-rare 1955 Mercedes-Benz 300 SLRUhlenhaut Coupé sold for US$143 million in Germany in May 2022 encompassing usage,production,delivery,and disposal

The company announced efforts to reduce soil contamination within its factories and recycle liquid waste into reusable fuels Pedraza describes Samsung?s move as ?impressive energy savings for that great feeling that,? I am using appliances and products that are better for the environment: My footprint as a wealthy individual,as a high-net-worth individual,has just decreased significantly?

When it comes to shopping,Coach? part of the larger Tapestry brand? has launched a (Re)Loved program, which offers bags that have been upcrafted,plus restored and vintage and modern bags,and Michael Kors has a Pre-Loved program High-end resellers The RealReal, REBAG,and Fashionphile are going strong,too

On the high-end accessories side,companies such as Tom Ford,Oris,and Tag Heuer have unveiled recycled or eco-friendly luxury watches,often teaming with groups focused on the environment For example,Oris now has a Clean Ocean Limited Edition piece in partnership with Pacific Garbage Screening,an organization dedicated to cleaner oceans and rivers

Hypercars are ramping up efforts as well ?Our research shows that high-net-worth and ultra-high-net-worth individuals and families desire and require ultraluxury products that meet the standards of uniqueness as well as sustainability,?Pedraza says ?Electric-powered hypercars meet those two requirements handily The Bugattis, Ferrari,and Lamborghini,all of them are going electric,? Pedraza says Everyday luxury cars such as Mercedes, Audis,Porsche,and BMWs are offering hybrid and electric models ?Many of these products do work better,and they make you feel better,?he says

Private yachts are getting an eco-facelift too,Pedraza says The X30 Villa by Extra Yachts,for example,uses a hybrid propulsion system to significantly reduce C02 emissions,solar panels to produce clean energy,and the design features sustainable materials such as reclaimed woods ?Either they?re trying to use materials that are sustainable to build and for the furniture inside? like recycled wood? or they?re trying to create energy efficiency like using solar,wind,whatever they can fit into that space,?Pedraza says

Yacht-owners are often willing to use their purchases for a worthy cause,by adding technology that follows marine life ?It gives scientists data so that they can track global warming,ocean warming,elements in the water, and having many yachts like this,you create a picture of some ecosystem,?Pedraza says ?That at least validates you as being better than just a polluter or consumer at the yacht experience?