Luxury Products and Services and the Sustainable Value Chain: Six Management Lessons from Gucci

Abstract

This chapter investigates the case for the re-moralisation of the idea of luxury and thus for the re-moralisation of luxury products and services through a consideration of luxury products and services and the ‘sustainable value chain’, a concept that incorporates a company’s production system and its impact on its stakeholders from shareholders, customers and suppliers to local communities and national governments. Following a discussion of the idea of luxury and the nature of luxury products and services, the idea of sustainability is considered before the sustainable value chain is explored in the context of the production of luxury products and services. The sustainable practices of the Italian luxury brand Gucci are then explored and six management lessons derived from Gucci’s experience are outlined for all luxury businesses.