On the 17th of June 2015, IE Business School presented the 5th edition of its Awards for Sustainability in the Premium and Luxury Sector in a ceremony held in its Paper Pavilion, designed by architect Shigeru Ban (2014 Pritzker Prize). The main objective of the awards, which are run jointly by IE Business School (Madrid) and Fundación de Estudios e Investigaciones Superiores (Buenos Aires), is to afford recognition of best commercial practices, strategies and innovation in the activities of sectors related to sustainability in the luxury and premium industry.

The goal of this study was both to know the opinion of experts on the relevant issues during 2014 and to explore the implications that these issues may have for the evolution of this sector in the immediate future and in the long term. The methodology of this study consisted on two separate phases. First, a quantitative research on a 40-people population with a recognized knowledge of the sector was carried out. Second, there was a qualitative study based on a roundtable where results of the initial quantitative phase were discussed.

This year’s awards were divided into three categories:

- Apparel and accessories, the winner of which was Spanish fashion and accessories brand Knitbrary (knitbrary.com). The firm is known for the craftsmanship of its garments which are produced using natural fibers brought over from the Andes, combining design and technical specifications with the experience of craftsmen and women who are able to select the best quality.

- Cosmetics, the winner of which was DeMamiel (demamiel.com), a leading English cosmetics company whose products are based on the principles of Chinese medicine, acupuncture and aromatherapy. The company is also committed to the use of environmentally-friendly products.

- Tourism, hotels and hospitality. The award for this category went to Mashpi Lodge (mashpilodge.com). The Lodge is located in the Ecuadorian Jungle, providing support to surrounding communities in the form of work, education and collaboration.

There were also honorary mentions for more consolidated firms in the luxury sector.

- Recognition of a Lifetime Contribution to Sustainable Luxury Development was given to iconic jewelry company Tiffany & Co (tiffany.es), for its commitment to the defense of society and the environment. It was the first company to adopt the objectives of the “No Dirty Gold” campaign to stop sourcing gold from mines that do not comply with social and environmental standards.

- Recognition of Latin American sustainable luxury was awarded to Carmen Rion (carmenrion.com) for work with the indigenous communities of Mexico to bring artisan textiles to the contemporary world.  The company’s work has been recognized in fashion capitals that include Paris and London.

The event was organized by the IE /Mastercard Observatory on Premium and Prestige Markets. Once again the master of ceremonies was Alexandra Cousteau, grand-daughter of France’s famous oceanographer Jacques-Yves Cousteau and tireless defender of the environment and of the sustainable management of aquatic resources in her capacity as ambassador of OCEANA. 

The opening address of this year’s edition of the awards was made by Santiago Íñiguez, President of IE University and Dean of IE Business School, joined by María Eugenia Girón, Director of the IE/Mastercard Observatory on Premium and Prestige Markets and Executive Director of the awards, and Miguel Ángel Gardetti, Director of the Center for Studies for Sustainable Luxury, and President and Founder of the Sustainable Luxury Prize.

The luxury industry has undergone a series of dynamic changes in the past 20 years. Economic trends, digital transformation and evolved consumer habits are slowly creating a new competitive landscape where traditional strategies will not be enough to maintain healthy growth and profitability. Selling a dream, representing a lifestyle and neglecting the power of digital media are no longer the keys to leading a successful luxury brand