PM Concept and Vision 2010

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Concept and Vision

~ Encouraging Sustainable Consumption ~


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! Facts and opportunity! P.M. values and mission! Unsustainable consumption?! Dissatisfaction and origins of consumerism! Shifting values and emerging best practices! New luxury consumer! Sustainable Luxury! EU Eco-label! Encouraging sustainability in wildlife trade! Life Cycle Thinking! Stakeholders = Partners! 10 Point Plan for sustainable brands! Roadmap! Sustainable Leather Development Group partnership! References

Summary

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! The way that people buy and consume products and services hasprofound implicationsfor the future generations

! We are consuming as if we had3 planetsbut failing improve our wellbeing! Povertyof the majority of world population andexcessive consumptionby the minorityare the 2 major causes of environmental degradation! Values are shiftingat deep level, majority of consumers prefer social & environmentalresponsible brands

! There is a new growing consumer trend: theSustainable Consumer! In South East Asia, doesexist sustainable sources(farms)of exotic skins(reptiles andfish)

Facts

Opportunity

! Four out of fiveEU consumers would like to buy more environmentally friendly products,provided they are properly certified.! Luxury brands havemore visibilityand cangenerate awarenessto the society

! Theworld Luxury & Leather industriesneed to align towardssustainability

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! Values:~ strong supportersof sustainable development and the UNEP:

Life Cycle Initiative

~ committedto play a role in helping drive theleather supply chaintransformationthrough partnerships and best practices in developing

countries

! Mission:~ creators offashionableanddurable eco friendlyluxury leather products

~ committed todeliver sustainableandaffordableluxury goods to consumers

Pelle Magna values and mission

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! sustainable development:~preservationof natural resources andprotectionof species

~generationof greater humanwellbeingwithout compromising theneeds

of future generations

Unsustainable consumption

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the appetite of our present materialism

depends upon stirring up our wants but

not satisfying them

! Current trends:~ shiftfrom GDP to wellbeing

~ companies make business

case for sustainability

~ as individualswe strive to

improve quality of life, both

through our careers andthe products or services on

which we spend our money

or our time

Dissatisfaction and origins of consumerism

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! Aligning brand valueswith relevantconsumer values:

~ increase brand relevance to consumer

~ differentiates from competitors

~ providing focus for communications

campaigns

~ reduce the risk of reputational damage

! Consumer values areshifting at a deeplevelandpreferringsocially andenvironmentally responsible brands

! Mainstream brands areusing sustainabilityto create valuefor consumers, shareholdersand staff

Shifting values and emerging best practices

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! Luxury companies influence consumer behaviour by:~ product designthat can reduce the direct impacts of production and

improve performance efficiency

~ example-settingthat influences consumer behaviour by such means as

advertising, the sponsorship of role models and the provision of user instructions

! Theclever moneyis on companies which sign up their consumers to supportthem on their journey to sustainability

! 70 % of French consumersagree totally with the statement: each one of us, is totally responsible for his actions regarding sustainable

development

! 57 % of UK consumershave recommended a company on the basis of itsresponsible reputation

New luxury consumer

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! Professionals in the luxury industry have anextraordinary opportunityto lead theway

! Withbooming salesandhigh margins, and an emphasis on consumer emotions,they have the resources and mandate to develop a more authentic and sustainableluxury

! Commercial advantages:~ operational efficiency gains

~ enhanced employee relations, easier recruitment, motivated and loyal staff, better

customer service

~ enhanced learning and innovation with higher productivity

~ more welcoming and accommodating local communities

~ enhanced brand reputation and trust

~ connections with associations and networks that generate new market intelligenceand enable access to new markets

~ more secure and sustained supply of raw materials, by more motivated suppliers

~ improved relations with the financial sector (responsible investors and lenders)

Sustainable Luxury

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! effective instrument for sustainable marketing bybest practicecompanies striving towards a sustainable economy! effective Eco-label marketingcan drive a companys success! general sales message: is that yourproduct fulfillsa set of

compellingcriteriarelated to impact on environment, health and

quality of use

! key argumentsfor your Flower labelled products:~ lower environmental impact

~ better for health

~ strict criteria

~ verified by independent consultants

~ official certificate EU Commission

! provides acompetitive advantageover competitors! Eco marketing strategy depend specific distribution system and type of

consumers group to address

EU Eco-label

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Encouraging sustainability in wildlife trade

! 25EUmember states representworld largest market for wildlife productsaccounting for 1/3 of legal global imports

! EU imports of wildlifeproducts had an estimated declared value80 billion Euro(2005)

! Illegal tradethroughout the world of hundreds of millions animals & plants,threatens the species survival and environments, as well affecting their livingcommunities

! International wildlife trade is regulated by theConvention on International Tradein Endangered Speciesof wild fauna and flora (CITES)

! Partnersfor sustainable wildlife trade:~ European Union Enforcement Group~ World Wildlife Fund WWF International

~ CITES - Convention Inter. Trade Endangered Species

~ TRAFFIC - wildlife trade monitoring network

~ Greenpeace -global environmental organization

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! LCM aims to minimize environmentaland socio economic burdens associatedwith product throughout its entire lifecycle and value chain

! LCM is a management system collecting,structuring and disseminating product

related information incorporatingenvironmental, economic and socialaspects of the product

! LCM can be adapted and graduallyintroduced in any organization. It needscommitment from top management andemployees participation

! Is a dynamic and voluntary processwhich is best implemented by a step bystep processand its in line with systemssuch as ISO 9001, ISO 14001

Life Cycle Thinking

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Stakeholders = Partners

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! Understand your brand! Understand your consumers! Get your house in order! Corporate and Social Responsibility! Innovate! Motivate! Collaborate! Communicate! Sign up your consumers to the sustainability journey! Measure, monitor and report continuously

10 Point Plan for sustainable brands


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Objective:development and production of luxury leather articles from sustainableresources

! SLDG Partners requirements: be wildlife farms, tanneries, designers, leather-goods manufacturers, EU Organizations,

Wildlife and Fisheries Bureaus, WWF.

supporter of the Sustainable Development provider of resources (financial, technical or material)! Project requirements: become partner of the Sustainable Leather Development Group (SLDG) raw material project definition (skin type to develop or upgrade) clear technical development specifications

complete assessment of partners facilities and resources Life Cycle Management implementation plan (UNEP) leather supply chain fully in line with EU standards (Eco label award)

Roadmap

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! Businesses should make greater investments indesign management,as wellchampion sustainable lifestylesto their consumers

! This must begin with a process ofinternal change, fostering sustainablebusiness practicesin all parts of theorganizationand itssupply chain

! Subsequently, evengreater environmental, social and economic gainswillcome as a result of better products and external communications

! With a combination of more sustainable products and effective communications,luxury brands can do well by doing good

! We have now an opportunity to decidestart workingtowards this ambitiousprojectin partnershipbetween all different stakeholders to produce sustainable

leather products from renewable resources.

! Pelle Magnawill assist you, asconsulting partnerimplementing these practicesand helping you become akey supplier for this luxury brand.

Sustainable Leather Development Group partnership

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References

! Let them eat cake report, WWF-UK, A. Kleanthous & J. Peck! Deeper Luxury report, WWF-UK, A. Kleanthous & Jem Bendel! Life Cycle Initiative guides, UNEP! EU Eco label, European Commissions Eco-label Scheme! ISO 26000 Certification

Luis Ampuero - Leather Expert - www.linkedin.com/in/luisampuero

Web links

www.panda.org www.traffic.org www.cites.org www.greenpeace.org

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Documents

PM Concept and Vision 2010