Luxury Companies Need to Satisfy Consumers' Deeper Social Conscience Post Recession or Risk Profits, say Industry Leaders in new Report

Being Good Equals Commercial Success in the Future

LONDON, September 20, 2010 - "Responsible Luxury", a new report launched today by CIBJO, the World
Jewellery Confederation, highlights that the luxury industry needs to satisfy
consumers' deeper social conscience to secure commercial success for the
future. It argues the global recession has forced luxury consumers to rethink
the way they live and subsequently their values and beliefs are increasingly
being reflected in purchasing decisions. They now demand that Corporate
Responsibility is embedded in luxury business operations.

According to report author Jonathan Kendall, President of CIBJO's
Marketing and Education Commission, the search for greater efficiency in
businesses could result in CR initiatives being considered "non-essential"
elements to axe. The report argues that this is short-sighted because
conscientious business practice is no longer simply an add-on and will ensure
customer loyalty in the future.

This is due to a deceleration in consumption during the recession, which
has given people a chance to reflect on their inherent values and beliefs and
expect more from a purchase than the product alone. According to a TIME
Magazine poll in 2009, for instance, nearly 40% of Americans purchased a
product because they liked the social or political values of the company that
produced it.

The "Responsible Luxury" report argues that as we go from recession to
recovery, the aspirational luxury industry has the opportunity to lead on CR
in the same way that it sets new trends in fashion, beauty and retail. Savvy
luxury brands will increasingly engage customers on a deeper level by
ensuring excellence in product design, accessible supply chain information,
and a celebration of craftsmanship as well as their ethical, social and
environmental behaviour. This, in turn, will be closely linked to a company's
profits.

Jonathan Kendall, report author and President of the CIBJO Marketing and
Education Commission, said: "The days of talking about corporate
responsibility are fast coming to an end. In the future CR should become an
invisible part of day to day business practice. Ultimately this will lead to
the best, most admired, most influential and most profitable businesses being
the ones who exploit not the population and planet, but the opportunities to
improve them."

The report states that the challenge in the current uncertain market
conditions is to balance investment on CR so that market share can be
maintained without jeopardising profits. The solution for luxury companies
who want to drive change is to:

    - Change the internal mindset
    - Get CR adopted key senior 'champions' in the organisation
    - Find ways to demonstrate ROI of CR initiatives
    - Articulate to staff why CR is good for business
    - Ensure CR has a place on the boardroom 'agenda', i.e. demonstrate
      shareholder value

A full copy of the report can be downloaded from
www.thecommunicationgroup.co.uk/responsibleluxury.

    Media enquiries:
    Mallika Basu/ Becky Roberts
    The Communication Group plc
    +44(0)20-7630-1411
    mbasu@thecommunicationgroup.co.uk/broberts@thecommunicationgroup.co.uk

Media enquiries: Mallika Basu/ Becky Roberts, The Communication Group plc, +44(0)20-7630-1411, mbasu at thecommunicationgroup.co.uk/broberts at thecommunicationgroup.co.uk