ABSTRACT

Based on the review paper by De Barnier, this chapter details the luxury as high quality products and services whose high price far exceeds their functional value, are sold through selective distribution channels and produced in rather small quantities, often by hand, with an image tied to prestigious clients. Financial analysts themselves are now examining how much effort luxury brand manufacturers make in terms of sustainable development (SD). These analysts consider that the high reputation of the luxury brand must remain intact to be able to sustain their high pricing power and subsequent high margins. Insensitivity seems to be a kind of 'non involvement' rather than direct opposition to being engaged in SD. Luxury brands are conscious that the time to procrastinate is over. One main source of the potential negative reactions of luxury consumers is their false assumption that, because of their high prices, luxury brands must have taken care of SD already.