Marketing luxury goods in a post-covid world: ESG is the new glam

For decades, institutions, businesses, and individuals have engaged in discourse regarding their commitment to building a better world. In 2022, however, we are still a long way from achieving sustainable development. While institutions have struggled to agree on common standards and regulations, businesses have shifted their corporate discourse to focus on environmental, social, and governance themes (ESG), which reflect their efforts to preserve the planet (E), generate positive societal impact (S), and operate in compliance with economic policies (G). This shift has resulted from corporate peer pressure, increased activism and consumer engagement on social media, and growing risks for reputational damage and financial impacts on corporations.

Among business sectors, the luxury sector, which has historically been associated with qualities that do not naturally align with sustainability such as overconsumption and social stratification, has worked to integrate ESG factors into corporate discourse.

This study unveils how different brands have been deploying ESG-oriented claims in their marketing messaging to build a favourable brand image in the eyes of their multiple stakeholders, and primarily consumers. Preliminary findings demonstrate that, between 2020 and 2021, brands showed a timely response to user-generated content on social media calling for environmental and social engagement. With time, what was a crisis management response during the pandemic provided the foundations to revisit communication strategies and values that resonate to consumers.