Access and sharing economies: the impact of new consumption modes on the management of business models in the luxury industry

Abstract

Over the past few years, there has been a remarkable surge in global awareness regarding the ecological repercussions of consumer habits, extending beyond the Western world to emerging countries. Consumer habits have undergone significant changes since the pandemic and are no longer driven only by price and quality, but also place importance on the health, safety, convenience, and origin of products. Some major fashion companies, such as The North Face or Patagonia, are aware of this and have begun to reshape their business models by integrating new economies such as the circular, the sharing, or the access economies. Despite evolving landscape of consumer behaviour and the introduction of governmental incentives, the fashion industry persists as a major pollutant. Textile production now contributes to 10% of worldwide greenhouse gas emissions and consumes nearly 4% of accessible drinking water. Similarly, the luxury sector has been slow to address these concerns. Stakeholders, including governments, NGOs, consumers, and media, press luxury brands to acknowledge their environmental impact. As a response, "sustainable luxury" has emerged as a potential resolution reconciling opulent consumption and environmental consciousness. The aim of the thesis is to analyse the impact of access and sharing economies on managing business models in the luxury industry. Based on various past studies, this thesis established a framework to explain the impact of sustainable consumption on different marketing concepts, such as consumer attitudes, loyalty, considering age group variations. A quantitative study involving online surveys will then explore and analyse the different hypotheses. The results highlight distinct behavioural differences between Gen Z and other generations. Younger generations embrace sustainable consumption, influenced by heightened education on global warming and societal issues. In addition, as they are very attached to appearance, they may sometimes buy eco- responsible products to fit in with others. As a result, their purchasing choices may include sustainable products without necessarily fully endorsing the authenticity of brands' sustainable practices. In order to effectively connect with Gen Z, companies must adopt a distinct approach to that of older generations, demonstrating transparency and authenticity in their environmental and social commitments. Based on the insights, this paper provides theoretical and managerial implications as well as suggestions for future research.