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Sustainability 2017, 9(4), 483;

An Exploratory Study of the Mechanism of Sustainable Value Creation in the Luxury Fashion Industry

Logistics Management Department, Beijing Jiaotong University, Beijing 100044, China
Design Department, Politecnico di Milano, 20158 Milan, Italy
Logistics Management and Maritime Studies Department, The Hong Kong Polytechnic University, Hong Kong, China
Author to whom correspondence should be addressed.
Academic Editors: Ciwei Dong, Bin Shen, Qingying Li and Patsy Perry
Received: 27 January 2017 / Revised: 19 March 2017 / Accepted: 20 March 2017 / Published: 23 March 2017
(This article belongs to the Special Issue Sustainability Issues in the Textile and Apparel Supply Chains)
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In recent years, increasing numbers of luxury groups have adopted sustainable practices in their supply chains (sourcing, manufacturing, logistics, distribution, servicing, waste and recycling). However, the report from Greenpeace International organization (2014) indicates that some luxury brands/companies did not actively conduct sustainable practices to produce items, which is likely attributed to the cost and risks caused by such practices outweighing the benefits. This, to some extent, is due to the failure of developing collaborative practices. Specifically, some luxury brands may fail to develop collaborative practices to create value that are able to benefit multiple stakeholders. Thus, in our study, we explore the value creation mechanism to create sustainable value that benefits not only brands’ shareholders, but also other stakeholders, including producers, customers, other stakeholders in the society (e.g., marginalized people) and the environment. In addition, based on a case study from Stella McCartney and Kering and the literature on value creation, we develop a novel model for guiding sustainable value creation (i.e., value co-creation model), where the conceptual building blocks and specific practices are presented. Our contribution lies in extending the knowledge of the value co-creation model from co-creation with customers to co-creation with multiple stakeholders and elaborating systematically and empirically sustainable value co-creation mechanisms including the building blocks and specific practices. In addition, this study offers significant managerial insights for luxury brands/companies to effectively achieve sustainable value. View Full-Text
Keywords: sustainability; sustainable value; value co-creation; supply chain; case study sustainability; sustainable value; value co-creation; supply chain; case study

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Yang, Y.; Han, H.; Lee, P.K.C. An Exploratory Study of the Mechanism of Sustainable Value Creation in the Luxury Fashion Industry. Sustainability 2017, 9, 483.

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