Green is the New Black

by erica ~ July 2, 2009

Going green, as we already may know, is not a new theory but it is starting to affect the high-end luxury brands. Brands such as Versace, Chanel, Louis Vuitton, and Tiffany & Co. are paying closer attention to their Corporate Social Responsibility programs since that’s what current consumers are interested in according to the Wall Street Journal.

For example, this summer, the windows of Tiffany & Co.’s retail stores world-wide feature images of coral reefs, publicizing Tiffany’s commitment since 2002 not to use coral in its designs. Also, there is a new documentary called “Home”, which features brands like Gucci, Yves Saint Laurent, Bottega Veneta and others that highlight man’s abuse of the environment in an effort to show the companies greener side.

In order to appeal to the younger generation, who more often consider their impact on the environment than do traditional luxury-goods buyers, most brands are trying to re-invent themselves. Although some environmental groups, such as WWF, were originally skeptical about these sudden changes, they are now supporting their efforts, which can be a little risky.

“For corporate alliances with nonprofit groups to succeed, companies need to disclose how much money they are donating or risk allegations of “greenwashing” — or paying lip service to environmental causes to promote their products, says Mike Lawrence, an executive vice president at Cone LLC, a Boston-based marketing agency.”

Although the sales of luxury goods are expected to fall 10% this year, the companies’ efforts to “green” themselves might turn out very beneficial for them. “People have higher expectations of companies to make and sell environmentally responsible products and services during the economic downturn,” according to 50% of Americans age 18 to 24 in a February survey from Cone LLC.   

Erica Berkovich is an Associate Account Executive at Mediashop PR.  She is currently pursuing a Masters degree in Corporate Communications at Baruch.