More and more consumers are considering a brand’s ethical and sustainability practices in their purchasing decisions. According to Nielsen’s report, this will affect consumer spending. 73% of millennials and 66% of customers worldwide are willing to pay more for sustainable products. This growing demand is seen especially in the fashion sector and among young consumers. Nearly half (43%) of Gen Z fashion consumers are actively seeking out and choosing brands they trust for sustainable practices.
With this in mind, fashion consumers, especially younger consumers, should be wary of the deceptive practices applied by many companies that try to “greenwash” using sustainability trends without actually delivering on their commitments. I’m starting to notice more and more.
Even global multi-brand fashion conglomerates like H&M can no longer cut corners on empty promises. Brands have been sued this year on greenwashing accusations, in which the lawsuit capitalizes on consumer interest in sustainability and “environmentally friendly” products through massive and potentially misleading marketing. I claim that
Recently, Boohoo, another fast-fashion giant popular among Gen X and Gen Z, swung against greenwashing after launching a “sustainable capsule” at a time when the principles of fast fashion production were far from sustainable. I received a viral online backlash.
It seems that the more respected a brand is, the higher the rate of fall from grace. The luxury industry in particular is no stranger to this level of scrutiny.
luxury consumers are watching
Just a few years ago, Burberry was accused of burning $37 million worth of merchandise without donating or recycling it. Meeting social and environmental responsibility standards continues to be a challenge for luxury brands, and many brands like Louis Vuitton are under the microscope when it comes to their environmental and social impact.
Many luxury brands have set goals to improve their practices, such as reducing the greenhouse gas emissions generated by their operations, but the problem is that they are not on track to meet those goals. There is no published evidence as to whether Their reputation is at risk.
Reputation is everything on the luxury circuit. If a luxury brand wants to protect itself from a customer base that is increasingly wary of deceptive practices, incorporating provable sustainability into its business model through verifiable data can turn its sustainability efforts into simple good intentions. It must be shown that it exceeds
Around the world, there is a huge push for greener practices. While there are many luxury brands with good intentions in meeting the demand for better sustainability, the challenge is often that tracking progress against green goals within existing systems is very complex. It lies in the fact that
This is where blockchain comes into play.
New consumer demands require new solutions
Innovative new technology helps luxury brands digitize and automate their supply chain networks. For example, blockchain can help track, trace and verify the sustainability of luxury goods with immutable authenticability, ensuring product sustainability and protecting reputation in the eyes of consumers. An interesting solution for brands that understand the importance of
Trust is a key component of customer loyalty, and today’s consumers want tangible proof from luxury brands before buying an ad. Only 18% of his Euro consumers say they trust public bodies to verify their green claims, and just 14% of participants say the same about private auditors. . Given this increasingly environmentally conscious customer base, building brand loyalty requires ensuring that your products are sustainable and that the products consumers buy align with these values. I need to find a way to prove it.
Consumer concerns about greenwashing stem from brands’ lack of transparency about their practices. This is where blockchain can provide a record of the full history of a product, verifying that the product a consumer purchases is verifiably sustainable. You can provide your customers with an accurate record and build brand trust and customer loyalty. This is important for customers who want to ensure that they buy sustainable products. Implementing blockchain technology in the direct-to-consumer realm could dramatically change the way brands communicate with their customers, making the investment in luxury brands seem well worth it.
passport to the future
Another area where luxury brands are looking to increase transparency and ensure provenance is digital product passports. These digital certificates allow customers to access product data records and history via mobile device applications. As a blockchain-powered tool, customers can track the lifecycle of their products from creation to sale, verifying the source of the materials used and the market in which they are sold. Protect them from greenwashing accusations. They meet the growing needs of buyers, whether they are Gen Z or Gen X.
Demonstrating sustainability practices through real, concrete initiatives is non-negotiable for luxury brands today. They also need to understand the importance of a consumer-centric approach and a personalized online experience. Bain & Company predicts that online will become the most prevalent channel for personal luxury goods by 2025, accounting for up to 30% of the global market, followed by retailers (26-28%) and outlet stores (13-15%). %).
A new generation of digital native buyers expect intuitive and modern online experiences, as much as they value brand authenticity and integrity. This is unlikely to be a temporary trend. Proving sustainability is essential to engaging the next generation of tech-savvy and environmentally conscious consumers if luxury brands want to thrive in the long term. By turning to innovative technologies like blockchain, luxury brands can secure their place among the next generation.