The report is set to evolve into an index, the E4S OriginAll Luxury Index which will measure the efficiency and impact on brand’s perception and customer relations.
The luxury industry has been impacted by the evolution of consumption behavior powered with technology. Today, advanced technology from artificial intelligence to the internet of things are used by luxury power houses to refine their marketing strategies and enhance their customer experience. Alongside these positive developments, the battle against counterfeiting practices continues. The luxury industry remains as exposed to this malpractice: 60 to 70% of traded fake goods are fake luxury merchandise.
Additionally, to battle counterfeiting, luxury companies have grown more exposed to consumers’ demand for more transparency into products’ origins and manufacturing processes. To address both challenges, executives of luxury companies have doubled down efforts to mitigate risks of complexity along supply chains. The use of technology such as blockchain has spread to reassure consumers about products’ origins and quality as well as to attempt to hinder the trade of fake luxury goods.
While tackling counterfeiting is an important business issue for luxury brands, it is also a sustainability concern. Indeed, production of fake goods often takes place in unregulated environments, which include workforce exploitation, child labor and polluting materials and machinery. Moreover responding to consumers concerns requires transparency on all dimensions of sustainability.
Luxury brands are therefore encouraged to join the initiative and collaborate with E4S and OriginAll by allowing researchers to take a deep dive into their traceability solutions and initiatives to ensure more transparency to consumers as well as their commitment to sustainability.