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Introduction
In 2019, sales of the world’s top 100 luxury brands exceeded $245bn, with 10.8% composite year-over-year sales growth and more than a 9% average profit margin (Deloitte Touche Tohmatsu, 2019). The luxury goods market is highly competitive with many players; luxury brands also compete with mainstream brands for consumer dollars (IBISWorld Database, 2020). Therefore, the threat of substitutes in the luxury market is high and brand differentiation is imperative. As the consumption of luxury brands is driven by consumer perceptions of high quality, exclusivity and exceptional craftsmanship, luxury brands are exceedingly sensitive to changes in the market and cultural environment (Fionda and Moore, 2009). Advertising is one of the key instruments luxury brands use to communicate their meanings and values to consumers (Gurzki et al., 2019).
One way that luxury brands can seek to differentiate themselves in a changing cultural environment is through initiating corporate social responsibility (CSR) initiatives and communicating these practices to their consumers through advertising. Consumers want and expect brands to “do good” in their communities and make a positive difference in the world (Diehl et al., 2016; Kim and Choi, 2019). Part of a brand’s CSR activities may include brand advocacy, where brands align with social issues to appear more socially responsible (Champlin et al., 2019). One such social issue alignment happens through femvertising: advertising that promotes female empowerment (Akestam, Rosengren and Dahlen, 2017). A recent report of CSR activities (Deloitte Touche Tohmatsu, 2019) notes many luxury brands already participate in CSR initiatives, including femvertising. For example, Kering Group (e.g. Gucci, Stella McCartney, St. Laurent) has increased their share of sustainable raw materials; in addition, it has launched a foundation to combat violence against women. Rolex presents an award to young entrepreneurs who develop projects that provide positive environmental or cultural change.
However, previous research suggests luxury brands are not directly communicating CSR messages to consumers (Winston, 2016); CSR activities cannot act as a differentiating factor for luxury brands if no one knows about them. This study uses the context of jewelry luxury brands to explore two research questions:
Are luxury jewelry brands communicating CSR messages (including women’s empowerment) in their advertising?
How should luxury jewelry brands communicate CSR messages in their advertising?
Jewelry is...