Insights
Why Luxury Retail Should Accelerate adoption of responsible practices
“Yes, I agree - remaking fashion & luxury for sustainability is costly, because we are just starting to achieve economies of efficiency in sustainability. But not making any changes? will ultimately be even more expensive.”
The fashion & luxury industry contributes to over 5% of the world's total carbon emissions & 20% of water waste - sustainability is becoming a table stake. Despite the increased consumer awareness, the current climate trajectory in India & globally is alarming.
The consumer data & research suggests that now (if not earlier) is the time to act.
- 38% of the consumers have switched to prefered brands with more responsible & sustainable practices
- 60% of the consumers say that they incorporate sustainability into their purchasing decisions & also believe that luxury brands bear a certain degree of responsibility for social and environmental progress.
- 80% believe that luxury companies need to take responsibility beyond production and sales by offering repairs, upcycling, and secondhand services.
Adaptations of businesses to sustainability range from alternate material selections, better supply chain practices & sourcing & more - these solutions categorically work to reduce the carbon footprint of associated activities. However, as the industry re-envisions itself & its future, it has become evident that to harness Sustainability as a competitive differentiator and advantage businesses will have to redefine 75% of their business model & revenue streams - enter Circular Models of Business in Fashion. A circular business model for fashion is an idea that harbors the potential to make far greater socio-climatic impact than incrementally reducing the harm of our current models in retail luxury businesses. At The Naraai Project innovate solutions & bionic pricing models to help businesses extend the life cycle of their products & services. The services support consumers in their purposeful choices & serve as a way to build new revenue streams that by nature are zero-carbon.
Yes, I agree - remaking fashion & luxury for sustainability is costly, because we are just starting to achieve economies of efficiency in sustainability. But not making any changes? will ultimately be even more expensive. With a growing no. of global regulations & increased resourced scarcity, fashion industry leaders will have to adapt & re-invent 75% of their business model. They will have to use sustainable fashion as a disruptive force to meet their ambitious growth targets by reframing the system and revising old habits.
Climate change will not wait, and neither should we.
(*Access the full TNP Case Study here soon: The Naraai Project is working with JADE by Monica & Karisma to embed Circular Business Models & Craft the Luxury Design Houses’ Journey to Net-Zero, Sustainable Future by 2035)
