Journal of Business Research 66 (2013) 1896–1903

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Journal of Business Research

Luxury and sustainable development: Is there a match?

Mohamed Akli Achabou a,⁎, Sihem Dekhili b,⁎⁎
a
IPAG Business School, 184 Boulevard Saint-Germain 75006, Paris, France
b
HuManiS (EA 1347), Humans and Management in Society, EM Strasbourg Business School, University of Strasbourg, 61, avenue de la Forêt Noire — 67085 Strasbourg Cedex, France

a r t i c l e i n f o a b s t r a c t

Article history: This research explores the extent to which sustainable development can be associated with luxury products.
Received 1 February 2012 In particular, it examines the propensity of consumers to consider recycled materials in luxury purchases. The
Received in revised form 1 June 2012 existing academic literature neglects this question and some newspapers recently launched a debate on the
Accepted 1 September 2012
relevance of adopting responsible practices in the luxury sector. Findings from an empirical study regarding
Available online 27 February 2013
the case of French luxury clothing indicate that incorporating recycled materials in such goods affects con-
Keywords:
sumer preferences negatively and reveals a certain incompatibility between recycling and the category of
Sustainable development luxury products. Despite the increasing concerns of consumers about the preservation of the planet, the re-
Recycling sponsible behavior of the brand remains a secondary selection criterion and consumers of luxury goods pri-
Luxury products marily focus on the intrinsic quality of the product.
Textile © 2013 Elsevier Inc. All rights reserved.
Consumer preference
Conjoint analysis

1. Introduction
We are living in an “ethics era” (Davies, Lee, & Ahonkhai, 2012)
characterized by an increasing number of companies engaged in corpo-
rate social responsibility (CSR). Excelling on social and environmental
dimensions improve business performance, especially in the current
societal landscape where the consumers have a greater CSR orientation
(Tang & Tang, 2012). Today, consumers express new concerns giving
rise to the consumption of products which are less toxic, more durable,
and made from recycled materials (Lozano, Blanco, & Rey-Maquieira,
2010). Nonetheless, research has shown that the positive link between
CSR and consumer preference for ethical goods is reached only when
some contingent conditions are satisfied: when the consumer supports
the company's CSR efforts, when the product is of high quality, and
when the consumer is not asked to pay a premium for social responsi-
bility (Bhattacharya & Sen, 2004). The consumer responses to CSR are
“often highly nuanced and often not so much an explicit endorsement
of corporate CSR policies” (Smith, Palazzo, & Bhattacharya, 2010, p 622).
Studies focusing on the issue of responsible consumption often
test the case of generic and everyday products such as food and cos-
metics (Ngobo, 2011) and examine the subject of eco-certification
(Lozano et al., 2010). However, the issue of sustainable development
affects all sectors, and it is surprising to note how few academic
⁎ Corresponding author. Tel.: +33 1 55 04 11 42.
⁎⁎ Corresponding author. Tel.: +33 3 90 41 42 81; fax: +33 3 90 41 42 70.
E-mail addresses: mohamed.achabou@ipag.fr (M.A. Achabou),
sihem.dekhili@em-strasbourg.eu (S. Dekhili).
contributions focus on this subject in the case of other more involved
product categories (Davies et al., 2012).
Several reports and newspaper articles have extended the debate
on sustainable consumption to luxury products. The existence of a
number of points of divergence in terms of values between luxury
and sustainable development suggests that there is a weak associa-
tion between the two concepts. Luxury is often associating with
personal pleasure, superficiality and ostentation, while the reference
to sustainable development evokes altruism, sobriety, moderation
and ethics (Widloecher, 2010). In their recent book, Lochard and
Murat (2011), however, support the idea that the two concepts are
compatible. The newspaper La Tribune (2011) indicates that the
luxury sector contributes to the transmission of ancestral skills and
the preservation of raw materials and local activities.
According to Kim, Ko, Xu, and Han (2012), sustainable development
presents an opportunity to improve brand differentiation and corporate
image especially in the light of the fact that consumers of luxury prod-
ucts are increasingly aware of social and environmental issues
(AFP, 2008). Ageorges (2010) and Kim and Ko (2012) argue that luxury
product manufacturers can no longer rely uniquely on their brand name
and the intrinsic quality or rarity of their products; they must now
convey humane and environmental values in order to establish a lasting
relationship with consumers. In line with this idea, consumers of luxury
products have recently extended their quality expectations to the social
and environmental dimensions (Lochard & Murat, 2011).
In response to the recent concerns of consumers, a number of
responsible initiatives are emerging in the luxury sector. Consider
the example of the Gucci brand which supports UNICEF by producing

0148-2963/$ – see front matter © 2013 Elsevier Inc. All rights reserved.
http://dx.doi.org/10.1016/j.jbusres.2013.02.011
 M.A. Achabou, S. Dekhili / Journal of Business Research 66 (2013) 1896–1903
a specific line of accessories every year, with 25% of profits going
to the association. In France, some luxury companies, such as the
Hermès brand, have adopted recycling practices.
In the academic literature, authors pay little attention to the
relevance of adopting responsible practices in the case of luxury
goods and do not examine the propensity of consumers to consider
recycled materials in luxury purchases, hence the relevance of this
study focusing on the particular case of luxury clothing.
The textile industry causes an environmental burden, especially
through the large volume of waste it generates and the use of
pesticides in producing cotton. This issue is of major concern to the
luxury clothing industry in light of the democratization of some
luxury products (Lochard & Murat, 2011). The current strategy of
luxury goods manufacturers involves offering a combination of the
exceptional represented by “custom-made” products maintaining a
prestigious image, of intermediate luxury linked to brand recognition,
and of more accessible luxury products produced at reduced costs for
the mass market (Chatriot, 2007).
The adoption of recycling practices by enterprises may contribute
to limiting the waste disposal problem (Kirsi & Lotta, 2011). While
some authors (Tsen, Phang, Hasan, & Buncha, 2006) argue that
consumers perceive recycled products in a positive light, the conclu-
sions of some research works (Hamzaoui-Essoussi & Linton, 2010)
do not concur with this finding and indicate that this preference is
product-specific.
The study here examines luxury consumers' preferences for
recycling. It proceeds first by reviewing the existing literature on
sustainable consumption in general and in the textile industry specif-
ically before exploring the particularities of luxury clothing. Next, the
paper outlines the research methodology adopted and presents
findings from the empirical analysis of French consumers' preferences
with regard to recycled luxury shirts. Finally, the paper draws a
discussion of key findings, presents limitations and offers managerial
and research implications.
2. Sustainable consumption: preferences and barriers
Consumers concerned with social and environmental issues show
different forms of commitment; it may be conspicuous, for example
by taking part in anti-advertising movements (Dubuisson-Quellier,
2007), or more discreet and individual practices (Roux, 2007), such
as sorting waste or purchasing green products. By adopting responsi-
ble behavior, consumers may express both altruistic motivations
related to the rejection of market domination (Peattie & Peattie,
2009) and selfish motivations such as the protection of their own
health, well-being and the search for premium quality levels
(Hertel, Aarts, & Zeelenberg, 2002).
Consumers who are environmentally conscious (Bianchi &
Birtwistle, 2012) and who adopt responsible behavior purchase
environmentally-friendly products by checking for organic labels or
information attesting to the use of recycled materials. Consumers
usually accept that the prices of green products are higher than
those of their conventional counterparts (Harris & Freeman, 2008),
and are even willing to pay more for them (Gam, Cao, Farr, & Kang,
2010). Guagnano (2001) shows that over 80% of the 367 American
consumers surveyed are willing to pay more for a household product
made from recycled materials. Galarraga and Markandya (2004)
identify a significant premium in the UK for organic and fair trade
coffee. Consequently, Smith et al. (2010) refer to “positive ethical
consumerism” when consumers express a preference for brands
deemed to be more ethical. Devinney, Auger, and Eckhardt (2011)
however, claim that the positive willingness to pay is limited to a
little segment and that most of consumers do not care enough
about companies CSR policies to pay a higher price.
While a number of studies confirm the theoretical consumer pref-
erence for responsible products, practice reveals several situational
1897
barriers to their consumption. These relate first and foremost to the
demographic and cultural characteristics of consumers (Doran,
2009). The literature suggests that socio-demographic factors, such
as gender, income, profession and familiarity with the products, affect
the consumption of green products (D'Souza, Taghian, & Peretiatko,
2007). In the case of textile products, for example, Niinimäki and
Hassi (2011) show that younger women are the group most
concerned by environmental and ethical issues. This finding is
followed by the complexity of the information relating to ecolabels
(D'Souza et al., 2007; Dekhili & Achabou, 2011) and finally the
price, quality, perceived value of the product and its availability on
the market (Hira & Ferrie, 2006). Meyer's (2001) research stresses
that a limited choice and esthetic disadvantages are two of the main
barriers to consumers purchasing environmentally-friendly products.
Auger, Burke, Devinney, and Louvriere (2008) suggest that the
effort consumers go to in buying a responsible product is limited.
Consumers are not willing to sacrifice certain other attributes of
functional products in favor of the ethical attribute. In their study,
Auger, Devinney, Louviere, and Burke (2008) note that purchase
intentions decrease massively when the functional attributes are
bad, even when the social attributes are good.
According to Berchicci and Bodewes (2005), successful green
products should not only incorporate environmental attributes, but
must also fulfill the same market requirements as their non-green
counterparts. Furthermore, the literature (Auger, Burke et al., 2008;
Auger, Devinney et al., 2008) shows that consumers are willing to
make an effort, especially in the case of generic goods such as fair
trade food products (banana, coffee, chocolate, tea, etc.), cosmetics
and everyday clothes (McGoldrick & Freestone, 2008). This raises
the question of whether the sustainability issue is considered beyond
the scope of these product categories.
3. The environmental issue in the textile industry
The clothing and textile sector has a major environmental foot-
print, polluting around 200 t of water per ton of fabric (Nagurney &
Yu, 2012). In Great Britain, for example, textile waste increased by
an average of about 2 million t per year between 2005 and 2010
(Kirsi & Lotta, 2011). The environmental impact concerns in particu-
lar the production of cotton, one of the most versatile fibers used
in clothing (Claudio, 2007), the disposal of textiles (Bianchi &
Birtwistle, 2012), and the distribution of the products across regions
and countries (Allwood, Laursen, Russel, Malvido de Rodrighez, &
Bocken, 2008). We examine the two first elements in more detail
below as part of our study.
3.1. The demand for organic cotton
A large quantity of pesticides and insecticides are used in cotton
fields. It is estimated that cotton production accounts for about 10%
of all synthetic pesticides and for between 20 and 25% of insecticides
applied worldwide every year (Nagurney & Yu, 2012). Several pesti-
cides are toxic and persistent in the environment (Gam et al., 2010).
Consequently, considerable environmental damage is observed
including water pollution, soil erosion and the emission of nitrogen
peroxide, a greenhouse gas (Alfoeldi et al., 2002).
Growing concerns about the environmental impacts caused by
conventional cotton have led to the development of organic produc-
tion which is much more environmentally-friendly (Gam et al.,
2010). Organic cotton is “cotton that is farmed without the use of
synthetic chemicals such as pesticides and fertilizers” (Rieple &
Singh, 2010, p 2292). Global production of organic cotton rose by
almost 3000% between 1992 and 2007 and forecasts predict contin-
ued growth (Ferrigno, 2007). Some clothing designers and companies
have launched innovative designs using organic cotton. For example,
Nike introduced six new designs in 2002 produced entirely from
1898 M.A. Achabou, S. Dekhili / Journal of Business Research 66 (2013) 1896–1903
organic cotton, with the range increasing to 98 designs in 2005
(Teulon, 2006).
The development of organic cotton production was aided by the
consumer awareness of the benefits of organic food production,
which began some time ago (Rieple & Singh, 2010). However, the
purchasing motivations relating to the two product categories, organ-
ic food products and organic cotton differ somewhat. While health
preservation is the main reason for purchasing the first one
(Krystallis, Fotopoulos, & Zotos, 2006; Quah & Tan, 2010), only envi-
ronmental considerations explain consumers' preference for the sec-
ond (Casadesus-Masanell, Crooke, Reinhardt, and Vasishth, 2009;
Gam et al., 2010).
Despite this development in production, the organic cotton mar-
ket nevertheless remains limited, representing only 0.1% of the total
clothing market worldwide (Rieple & Singh, 2010). In addition,
consumers' willingness to pay for organic cotton clothing is low.
According to Gam et al. (2010), price remains one of the most
decisive factors in determining when consumers actually purchase
organic clothing products. The average price of a fully-certified
organic-cotton t-shirt in 2007 was nearly three times that of a con-
ventional cotton t-shirt (Rieple & Singh, 2010).
3.2. The challenge of reducing textile waste
Many factors, such as fast cycles of fashion, low quality and
short-term use, contribute to the increasing volume of textile waste
which causes an environmental burden (Bianchi & Birtwistle, 2012).
Among the practices promoted to minimize the clothing disposal prob-
lem, recycling is currently very popular as it demands only a small
change in behavior from producers and consumers (Fletcher, 2008).
The term recycling is generally used as “a collective term for the recov-
ery as well as the utilization of secondary material” (Van Beukering &
Bouman, 2001, p. 345). Recycled products are perceived in a positive
light by consumers (Tsen et al., 2006), who consider recycling as a
means of protecting the environment (Guagnano, 2001). According to
Hines and Swinker (1996), ecologically-conscious consumers who are
familiar with recycling prefer clothes made from recycled fibers.
The demand for clothes produced in a manner that minimizes the
generation of waste is not only observed among consumers but also,
more recently, among firms such as Patagonia, Levi's, Gap, and H&M
that wish to enhance their positive brand identity (Claudio, 2007;
Tucker, 2010). Managers can adopt a range of approaches to reduce
textile disposal: first, the eco-efficiency approach (Niinimäki &
Hassi, 2011) which involves using discarded textiles (e.g., reuse and
recycling); second, the slow design approach with clothes designed
for use over a long time period (Fletcher, 2008); and third, the
co-design approach which encourages the participation of end users
in the design process. In this case, personalized products offer an
opportunity to create a deeper emotional bonding and attachment
between the user and the product which can extend the period of
use (Niinimäki & Hassi, 2011).
The approaches highlighted above are applied most particularly in
the case of premium and luxury brands. The American brand Patagonia
(top-end sport garments) is a good example of a company that has suc-
cessfully combined different approaches (Casadesus-Masanell et al.,
2009). Patagonia reuses discarded clothes, unsold items from previous
collections and the waste from fabric cuts. Furthermore, Patagonia
designs classic products, which do not go out of style before being
worn out. The “Seedling” collection for children, manufactured from
the waste of fabric cuts, enjoys considerable success (Teulon, 2006).
4. Recycling opportunity in the luxury clothing sector
Researchers use “luxury” to describe the top category of presti-
gious brands (Li, Li, & Kambele, 2012). Luxury goods are considered
as “goods for which the simple use or display of a particular branded
product brings esteem on the owner, apart from any functional utili-
ty” (Vigneron & Johnson, 2004, p. 286). In addition to the functional
dimension, several articles (Kapferer, 1997; Tynan, Mckechnie, &
Chhuon, 2010; Vickers & Renand, 2003) highlight the psychological
benefits associated with luxury goods.
A large body of research deals with the issue of luxury consumption,
exploring such aspects as prestige (e.g., Vigneron & Johnson, 1999), at-
titudes (e.g., Dubois, Czellar, & Laurent, 2005), value (e.g., Tynan et al.,
2010) and the effects of socio-demographic characteristics (Dubois &
Laurent, 1993). It is surprising, however, to note the lack of academic
literature on ethical consumption in the case of luxury goods (Davies
et al., 2012). Nevertheless, a number of newspapers and reports
(AFP, 2008; Ageorges, 2010; La Tribune, 2011) have recently launched
a debate on the opportunity to adopt responsible practices in the luxury
goods industry.
The few works (Bendell & Kleanthous, 2007; Davies et al., 2012)
which explore the subject argue that luxury brands have both the
opportunity and the responsibility to promote responsible consump-
tion. According to the AFP report (2008), luxury companies have
substantial financial resources to assume a leadership role on this
issue. For consumers, ethical concerns can help to improve opinion
and self-perception; they constitute an increasingly decisive factor in
the psychological satisfaction afforded by luxury goods (Olorenshaw,
2011).
With this in mind, we find that some luxury companies have
implemented responsible initiatives. The Cartier group, for example,
has become a member of the Responsible Jewellery Council, which
certifies that the diamonds and gold used in their creations is mined
in good social and environmental conditions. In 2004, the French de-
signer Jérôme Dreyfuss registered the “Agricouture” label, a clothing
line favoring local supplies, vegetable leather tanning and the use of
recyclable consumables. In 2009, the PPR group financed the docu-
mentary film “Home” produced by Yann Arthus-Bertrand. More re-
cently, a number of firms have adopted recycling practices. In 2009,
Yves Saint-Laurent launched the “New vintage” collection created
using recycled fabric from previous seasons while in 2010, Hermès
developed the “Petit h” collection (accessories, toys for children,
etc.), a line manufactured using cast-offs and scrap from the work-
shops of the brand.
Although these initiatives remain highly limited to date, it is inter-
esting to examine the possibility of their becoming widespread in the
coming years. Our aim in this research paper is to determine the
relevance of adopting recycling practices in the case of luxury
clothing. It is important to note that the perception of recycling is
product-specific. The research conducted by Hamzaoui-Essoussi and
Linton (2010) shows that, depending on the product category and the
perceived associated risk, consumer preference for recycled products
may vary. Moreover, the recycled products may be perceived as being
of lower quality than similar products made from virgin raw materials.
5. Method
5.1. Product and method selection
The luxury product that we chose to test in this study is “shirts”,
for two main reasons: 1) they are textile products for which the
issue of fabric recycling is especially relevant; 2) both men and
women purchase them, a fact which enables us to consider the
preferences of both consumer segments.
We opted for the “Hermès” brand because it is representative
of international luxury goods and enjoys high unaided awareness
among consumers (Dubois & Laurent, 1993). Furthermore, the
brand recently launched a line of products made from recycled
materials.
To learn whether or not recycling materials positively (negatively)
influence consumer preferences for luxury products, the study here
 M.A. Achabou, S. Dekhili / Journal of Business Research 66 (2013) 1896–1903 1899

employed a conjoint analysis as a means of measuring the perceived Hermès shirt

value of product attributes (McFadden, 1986). In this approach, we 100% Coton 30% of the material used to manufacture this
shirt comes from the recycling of unsold items
asked respondents to evaluate products comprising several combina-
from the previous collection.
tions of attributes. This makes it possible to calculate the utilities and
the structure of consumers' preference based on their general 30% of recycled material
opinions on the profiles presented (Green & Srinivasan, 1990). We The fabric used to manufacture this shirt is
Organic cotton designed using organic cotton.
chose to adopt the scoring method, which is based on scales of
measurement (Louviere & Woodworth, 1983).
€320
5.2. Selecting attributes and defining the experimental design

The experimental design included three attributes: fabric recycling,

type of cotton and price. We believe that consumers may demonstrate
different preferences according to the proportion of recycled materials
used in the product. Consequently, we distinguished between three
possible scenarios: no recycled material, a small proportion (30%) and
a high proportion (70%). Moreover, the organic nature of goods is in-
creasingly associated with the cotton used to manufacture textile prod-
ucts. We therefore consider both cases in this experiment: organic
cotton and conventional cotton. Last, we chose three price ranges corre-
sponding to the price levels operated on the market by the Hermès
brand. The attribute levels retained appear in Table 1.
To reduce the number of alternatives presented to respondents,
we adopted a fractional factorial design using the SPSS software. We
thus implemented nine alternatives, each of them described by the
proportion of recycled material, the organic or conventional nature
of the cotton and the price level.
Various consumption contexts associate with the purchase of
luxury products (e.g., gift, ordinary personal consumption or personal
consumption for a special occasion). For this experiment, we chose an
involved consumption situation that implies self-perception and peer
opinion, “Buying yourself a shirt of the Hermès brand for an impor-
tant event”. The alternatives were presented to respondents in the
form of labels (see Fig. 1). A short explanation concerning fabric
recycling and organic cotton was displayed next to each label
explaining these concepts. Respondents were asked to evaluate each
of the nine alternatives on a Likert scale from 1 (I don't like it at all)
to 7 (I like it a lot).
In addition to evaluating alternatives, respondents indicated what
recycling means to them, their criteria for choosing luxury products
and their level of agreement with the idea of using recycled materials.
They also had the opportunity to justify their responses. Finally, the par-
ticipants answered questions concerning their socio-demographic
characteristics and consumption habits.
5.3. Sample
Fig. 1. Example of a tested label.
mainly of executives and entrepreneurs. 3700 individuals were
contacted in November and December 2011. After sending reminders,
131 respondents confirmed that they consume luxury products and
completed the questionnaire. The characteristics of the sample are
summarized in Table 2. Most respondents are executives (72.5%)
with a high monthly income (61.1% have a monthly income of more
than 3000 euros; of these, 27.5% earn more than 5000 euros per
month) who regularly consume luxury products (64.9% consume
three luxury items or more per year; of these, 29% purchase more
than five luxury products). The luxury product categories in which
consumption is highest are clothing, cosmetics and food products.
Most respondents (92%) claim that they are sensitive to the issue of
sustainable development, the majority of which is composed of con-
sumers of organic (84%) and fair trade (76.3%) products.
6. Findings
6.1. Perceptions of recycling in the case of luxury products
Before estimating the nature and weight of the effect of fabric
recycling on consumer preferences, we investigate both the impor-
tance consumers attach to the environmental commitment of luxury
brands when making their choice and their perceptions of the inclu-
sion of recycled materials in a luxury product.
6.1.1. The importance of the brand's environmental commitment
When choosing a luxury product (see Table 3), respondents attach
the greatest importance to product quality (mean= 4.7, on a five-point
Likert scale), price (mean= 4.1) and brand reputation (mean= 4.0).
However, the environmental commitment of the brand does not appear

The study focuses on consumers of luxury products. They have Table 2

been defined in previous research as individuals with a high income, Characteristics of respondents.
an executive position, in the prime of life and living in a capital city
Variables Number of
(Dubois & Laurent, 1993). respondents
The study used a convenience sampling method to collect the
Gender Male 72
data. To solicit respondents, the authors obtained an email list of Female 59
Parisians belonging to upper socio-professional classes composed Profession Student 7
Employee 10
Executive 95
Table 1 Retired 1
The levels of the attributes tested. Other (Shopkeeper, 18
entrepreneur, artisan)
Attributes Levels
Monthly income 500–1500€ 7
Fabric recycling –None 1500–3000€ 44
–30% of recycled material 3000–5000€ 44
–70% of recycled material >5000€ 36
Type of cotton –Organic Consumption level of Occasional consommateursa 46
–Non-organic luxury products Regular consommateursb 85
Price –€320 Total number of respondents 131
–€430 a
Occasional consumers: less than 3 products per year.
–€470 b
Regular consumers: 3 products and more per year.
1900 M.A. Achabou, S. Dekhili / Journal of Business Research 66 (2013) 1896–1903

to be a decisive selection criterion (mean = 3.0). It is nevertheless Table 4

important to underline the dispersion of answers relating to the The meaning of recycling according to consumers (5-point Likert scale).

latter (standard deviation = 1.03). Examining the respondents' Themes N Minimum Maximum Mean Standard
evaluations in greater detail, we observe that opinions diverge deviation
(37.4% consider it to be an important selection criterion, while Product recycling is synonymous 131 1 5 2.2 1.13
32.9% find it is of little importance; the remaining respondents with poor quality
have no marked opinion). Recycling poses a health risk 131 1 4 1.6 .87
Recycling makes it possible to 131 2 5 4.4 .73
protect the environment
6.1.2. Consumer skepticism toward recycling Recycling is a way for brands 131 1 5 3.3 1.13
We asked respondents what recycling means to them in terms of to gain money

four statements. Their answers appear in Table 4.

Table 4 shows that consumers associate recycling with environmen- in the case of luxury clothing. The formula of Hensher, Rose, and Greene
tal protection (mean = 4.4; SD = 0.73). However, the issues of “health (2005) was used to measure the relative importance of each attribute.
risk” (mean = 1.6; SD =0.87) and “poor quality” (mean = 2.2; SD=
1.13) do not seem to be associated with the notion of recycling in con- max utilityðkjÞ–min utilityðkjÞ
Importance of an attributeðkÞ ¼
sumers' minds. The idea of monetary gain by companies through ∑ðmax utilityðkjÞ–min utilityðkjÞÞ
recycling stimulates no strong opinions, although answers are scattered
(mean = 3.3; SD = 1.13). Some respondents think that the real motiva-
Where utility (kj) is the utility of level j of attribute k.
tion of enterprises is exclusively commercial: “ecology–economy: very
The importance percentages of the three attributes of “fabric
often, the two go hand in hand;” “recycling is also a form of business
recycling”, “type of cotton” and “price” are 39, 25, and 36 respectively.
marketing, brands advertise ethical values, which improves their
Fabric recycling is thus the attribute which influences consumers'
image”; “the idea of creating value at the expense of pro-recycling con-
preference most strongly.
sumers bothers me.”
We now examine the utility values of the levels associated with
With regard to the use of recycling in the case of luxury products
attributes in order to determine how variations in the proportion of
(see Table 5), consumers are fully in favor of recycling the packag-
recycled materials included in the product influence consumer prefer-
ing of products (mean = 4.5; SD = 0.85). However, their percep-
ences. As expected, the lowest price (€320) was perceived favorably
tions are less clear-cut when it comes to incorporating recycled
by consumers (utility value = +0.65). The other two price levels
materials into the luxury product itself; the ratings given are rela-
(€430 and €470) were perceived unfavorably (utility values = −0.18
tively neutral, irrespective of the type of product. Standard devia-
and −0.47 respectively). Similarly, and unsurprisingly, Fig. 2 shows
tions are high, which shows a lack of consensus on this issue
that the organic nature of cotton affects respondents' preferences posi-
(SD = 1.25 in the case of clothing; 1.26 in the case of fine leather
tively (utility value = +0.43).
goods; 1.39 in the case of jewelry/clocks and watches). Conse-
As for the “fabric recycling” attribute, we observe that the intro-
quently, luxury goods appear to be incompatible with recycling.
duction of recycled fabric into the luxury clothing product is per-
On this issue, one respondent admitted that “I don't believe that
ceived negatively by consumers. Their perception is more negative
recycling should concern luxury, in my opinion, there is a contradiction
in the case of the lowest recycling rate (utility value = − 0.24 in the
between luxury and recycling.” Another told us that, “True luxury
case of a 30% rate, as opposed to − 0.04 in the case of a 70% recycling
concerns too few products to have a negative effect on sustainable
rate). In contrast, the absence of recycled fabric is perceived positively
development.”
(utility value = + 0.28). Therefore, respondents prefer luxury shirts
Although study participants have a mostly positive perception of
made entirely from non-recycled materials.
recycling (associated with environmental protection but not with
health risks or poor quality), they were reluctant to accept its intro-
6.3. The effects of demographic and behavioral variables
duction in the manufacturing process of luxury products, preferring
for it to be restricted to the product packaging.
In our analysis, we also tested the effect of the socio-demographic
variables “gender” and “income”. Moreover, we considered the
6.2. The effect of recycling on consumer preference consumption level of luxury, fair trade and organic products as an
indicator of consumers' familiarity with these products. The results
In order to estimate partial utilities and determine the main of the model incorporating these variables and interactions appear
effects of the different attributes, we performed a regression analysis in Table 7.
(least squares method). “Kendall's tau coefficient” takes a value of Gender has a significant effect on consumer preferences; women
0.83 (close to 1), thereby indicating a high degree of homogeneity are less reluctant toward the introduction of recycled materials into
among individual preferences and legitimizing the results of the the luxury clothing product than men (utility valuewomen = + 0.15
model which appear in Table 6. in the case of the absence of recycled fabric; − 0.22 in the case of a
The three attributes tested are significant. We can deduce that fabric 30% recycling rate; + 0.07 in the case of a 70% rate, utility value-
recycling, the type of cotton and the price influence consumer preferences men = + 0.28, in the case of the absence of recycled fabric; − 0.24 in
the case of a 30% recycling rate; − 0.04 in the case of a 70% rate).

Table 3 Table 5
Evaluation of choice criteria in the case of luxury products (5-point Likert scale). Level of agreement with the use of recycling in the case of luxury products (5-point
Likert scale).
Choice criteria N Minimum Maximum Mean Standard
deviation Category of products N Minimum Maximum Mean Standard deviation

Price 131 2 5 4.1 .65 Clothing 131 1 5 3.4 1.25

Brand reputation 131 1 5 4.0 .89 Fine leather goods 131 1 5 3.5 1.26
Product quality 131 3 5 4.7 .46 Jewelry/clocks 131 1 5 3.2 1.39
Environmental commitment 131 1 5 3.0 1.03 and watches
of the brand Product packaging 131 1 5 4.5 .85
 M.A. Achabou, S. Dekhili / Journal of Business Research 66 (2013) 1896–1903 1901

Table 6 Table 7
Characteristics of the basic model without interactions. The effects of socio-demographic variables and familiarity with luxury, fair trade and
organic products.
Source of variation Type III sum of Degree of Mean F Sig
squares freedom square Source of variation Type III sum of Degree of Mean F Sig
d.f. squares freedom square
d.f.
Corrected model 445.654a 5 89.13 37.28 .000
Y-intercept 14,692.534 1 14,692.53 6146.38 .000 Corrected model 617.565a 27 22.87 10.00 .000
Fabric recycling 43.623 2 21.81 9.12 .000 Y-intercept 7080.717 1 7080.72 3096.39 .000
Type of cotton 161.969 1 161.97 67.75 .000 Fabric recycling 21.449 2 10.72 4.69 .009
Price 240.061 2 120.03 50.21 .000 Type of cotton 125.236 1 125.23 54.76 .000
Error 2803.980 1.17 2.39 Price 240.061 2 120.03 52.49 .000
Total 18,642.000 1.18 Gender 20.494 1 20.49 8.96 .003
Corrected total 3249.634 1.18 Income 21.475 3 7.16 3.13 .025
a Luxury consumption 51.745 3 17.25 7.54 .000
R-square = 0.14 (adjusted R-square = 0.13).
Fair trade consumption 1.810 2 .90 .39 .673
Organic consumption 2.472 2 1.23 .54 .583
Fabric recycling ∗ luxury 41.257 6 6.87 3.01 .006
Not surprisingly, familiarity with luxury products shows a significant consumption
Fabric recycling ∗ gender 3.956 2 1.98 .86 .421
effect. The results indicate that regular consumers of luxury products
Type of cotton ∗ luxury .954 3 .32 .14 .937
are less favorable to the introduction of recycled materials than occa- consumption
sional consumers (utility valueregular = + 0.61 in the case of the ab- Error 2632.069 1151 2.29
sence of recycled fabric; − 0.34 in the case of a 30% recycling rate; Total 18642.000 1179
− 0.27 in the case of a 70% rate, utility valueoccasional = + 0.44 in the Corrected total 3249.634 1178

case of the absence of recycled fabric; − 0.28 in the case of a 30%
recycling rate; − 0.15 in the case of a 70% rate).
However, familiarity with fair trade and organic products has no
significant effect. Furthermore, there is a significant interaction effect
between familiarity with luxury products and fabric recycling (α =
5%).
7. Discussions and implications
This research includes three major findings. First, “product quali-
ty” and “brand reputation” still constitute decisive selection criteria
in the case of luxury products. Despite the growing ethical and envi-
ronmental concerns of consumers, the “environmental commitment
of the brand” criterion is not, on the whole, a decisive factor. This re-
sult supports the conclusion of Davies et al. (2012) which states that
the trend toward “everything green” appears to be taking root only
very slowly. Luxury companies should take up societal challenges
(Dereumaux, 2007), but this must not be done to the detriment of
the intrinsic quality of the products, which is a priority requirement
among consumers. It is clear that consumers are only willing to buy
environmentally-friendly clothing if the intrinsic quality attributes,
such as style and color, are equivalent to those of conventional prod-
ucts (Domina & Koch, 1998).
Second, the presence of recycled material in luxury products is
perceived negatively by consumers. The respondents are convinced
of the benefits of recycling to the environment and no unfavorable
perception is associated with this practice (no health risk and no
Bold character indicates significant effects (b0.05).
a
R-square = 0.19 (adjusted R-square = 0.17).
link with perceived poor quality), yet a rejection of the introduction
of recycled materials in luxury products is observed. Only recycled
packaging is accepted.
The results of the conjoint analysis offer additional support for this
observation. Possible reasons for this apparent discrepancy between
favorable perceptions toward recycling and the behavior adopted
when choosing luxury products are as follows. First, in the dissonance
between recycling and the product category studied, this contradic-
tion might result from the notions of prestige and rarity which char-
acterize luxury products (Catry, 2007). Despite the fact that it was not
associated with poor quality in our study, recycling does not appear
to be associated with “prestige”, and while luxury goods have to a
certain extent been democratized, the production of luxury clothing
does not call to mind the idea of an excessive use of resources. Con-
sidering their characteristic scarcity (Catry, 2003), slow fashion and
level of personalization, consumers do not appear to believe that lux-
ury products are a danger to the planet. This phenomenon is consis-
tent with the conclusions of Widloecher (2010), who observes that
luxury, in general, favors quality over quantity, craft and rarity over
mass production, in the spirit of “consuming less but better” while
supporting the “Fallacy of Clean-Luxury” (Davies et al., 2012). Wasted
resources are thus considered to be caused by the consumption of
products with a short life cycle, rather than by prestigious luxury
products.

Fig. 2. Utility values of the various levels associated with the attributes “Fabric recycling”, “Type of cotton” and “Price”.
1902 M.A. Achabou, S. Dekhili / Journal of Business Research 66 (2013) 1896–1903

Another reason is that due to the consumers' doubt, the true motives Corporations should contribute to change the consumption routines of
of companies that adopt recycling practices, believing that they may be their customers and co-create responsible consumerism. It might result
purely commercial in nature — a means to boost sales. This idea is there- from a process of education, empowerment and transformation of
fore in line with Potoski and Prakash (2005), who highlight the oppor- existing consumption habits.
tunistic behavior of companies. In particular, the question of the Second, the results of the current study imply that it is in the best
credibility of brands promoting themselves as “responsible” notably interests of luxury brands to advertise the type of cotton when it is
arises in a context where greenwashing is a common phenomenon. organic. In the fashion industry, reputational benefits are, today, intimate-
The decision of companies to advertise their commitment to sustain- ly dependent on adherence to what are perceived to be a sustainable
able development is explainable by image management imperatives in stance, in which the use of organic materials is fundamental (Rieple &
response to social pressure resulting from negative environmental reper- Singh, 2010). However, luxury companies are now faced with three prob-
cussions (Bansal & Roth, 2000). The decision may be a plan to establish a lems concerning organic cotton: availability, quality variation (Kapferer,
degree of legitimacy or as an eco-friendly masquerade enabling compa- 2010) and certification insufficiency (Sanfilippo, 2007). Relating to the
nies to enhance, maintain or repair their reputation (Caron & Cho, 2009). earlier point, an organic textile product has to be certified as organic
The results show that the introduction of recycled materials in a throughout the whole chain from cotton fields until it is finally sold.
luxury garment reduces the value of the product. This does not Investments are therefore required to develop this type of production.
support Guagnano's (2001) conclusions, which underline the fact that
recycling has a positive influence on consumers' willingness to pay.
7.2. Research implications
However, they do concur with Hamzaoui-Essoussi and Linton (2010)
findings, stating that the willingness to pay for recycled products is
Although this research makes an important contribution, further
product-specific.
studies should increase understanding of the sustainable develop-
The gender can influence the consumers' preference for the intro-
ment issue in the case of luxury goods. In order to gain a better under-
duction of recycled materials in luxury clothing products. Women
standing of the nature of the dissonance which seems to exist
perceive the use of recycled materials less unfavorably than men.
between recycling and luxury products, we believe it would be fruit-
This conclusion is in line with Niinimäki and Hassi (2011) who
ful for future research to perform a qualitative study to provide
argue that in the case of textile products, women are more concerned
insights into the reasoning of consumers. This would enable us to
by environmental and ethical issues.
explore the universe of luxury products from the consumers' point
Finally, in contrast with recycling practices, consumers perceive
of view and determine to what extent the theme of sustainable devel-
the use of organic cotton positively. In the case of our sample, 84%
opment is associated with luxury. Additional research should exam-
of respondents are consumers of organic products, especially in the
ine the “fallacy of clean-luxury”.
textile sector. This result may be explained by the positive image
Contrary to expectations, our research reveals that perceptions of
associated with organic products in France. A survey conducted by
recycling are more negative in the case of the lowest recycling rate
Agence bio and CSA (2010) shows that 12% of French people opted
(less negative utility in the case of a 70% rate of recycled material
for organic textiles in 2010. Their choice was driven by environmental
compared to a 30% rate). Consumers may consider that for a luxury
concerns (mentioned by 53% of respondents) and product quality
product it is better for it to be entirely recycled. A future study
(43%). However, it is important to note that the development of
needs to be conducted to examine the relationship between con-
organic cotton is confronted with certain obstacles. Farming practices
sumers' preferences for recycled products and the proportion of
must be radically changed with regard to fertilizer use and pest
recycled materials incorporated in a luxury product, and to include
control, while major investment is required (Droy, 2011). Conse-
additional sustainable practices such as the reduction in the amount
quently, among the problems encountered, firms are faced with
of packaging which are liable to affect consumer preferences for
supply issues and additional costs (Teulon, 2006).
luxury products. Furthermore, an examination of the effects of
consumers' characteristics shows that gender, familiarity with luxury
7.1. Managerial implications
products and interaction between familiarity with luxury products
and fabric recycling have significant effects on the preference for
A large number of luxury brands have now taken the path of sus-
recycled products. This result is interesting but should be considered
tainable development in order to meet the expectations of consumers
with caution because of the current sample (a convenience one and
who are increasingly aware of this issue. Luxury consumers enjoy
relatively small in size). Replicating this study with additional
“power,” as Mitchell, Agle, and Wood (1997) define power. The
consumer samples in different countries or regions of France is neces-
high price of the products they purchase gives them the authority
sary to test the effect of these variables.
to be more demanding than in other segments (Dereumaux, 2007;
Finally, future studies should also determine the extent to which
Kapferer, 2010).
the negative perceptions toward recycling identified in the case of
The study here examines consumers' preferences for recycled lux-
clothing could be extended to cover the luxury product sector as a
ury clothing. This study is one of the few that explores the issue of
whole. It would thus be beneficial to carry out comparative experi-
sustainable development in the luxury product category. This re-
ments with other luxury products like jewelry and cosmetics.
search shows, on the one hand, that incorporating recycled materials
in a luxury product has a significant negative effect on consumer pref-
erences. And, on the other hand, using organic cotton increases con- Acknowledgments
sumer preference. Based on those findings, enterprises should
consider implementing the following managerial propositions to in- The authors thank the editors and reviewers for their valuable
crease purchase intent for luxury fashion brands. comments and suggestions that have helped improve this manuscript.
First, a strategy of promoting luxury products based on the argu-
ment of recycling materials would be ineffective on the French market.
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