China’s Gen Z on Chanel’s sustainability problem

The past decade has seen luxury houses pivot to publicizing their sustainability efforts. But a common thread in the yearly rankings tracking the industry’s improvement is Chanel’s status as a laggard. Trending headlines about the French fashion house in the past 12 months have related to that unexpected Manchester fashion show, creative director Virginie Viard’s departure, and Jennie from Blackpink sporting blonde hair at the Spring 2025 show. All the while, Chanel is struggling to evolve to the same level of sustainability as its competitors, reflecting challenges in improving its transparency and water conservation practices. The label was ranked lowest in rankings released by CLB this month, measuring 10 brands across nine categories, including wages, emissions data, and material sourcing verification. Fashion Revolution’s 2023 Fashion Transparency Index reported that Chanel’s performance had declined since 2022. While Gucci achieved 100% renewable energy in 2022, Chanel’s goal is to reach that milestone next year. Following the release of the Chanel Mission 1.5° climate action plan in 2020, which focused on tackling the climate crisis with science-based targets to lower the house’s carbon footprint, the brand is reportedly hoping to reach net-zero by 2040, 10 years before Hermès or Prada. Announced two weeks ago, Sophie Brocart has also moved on from her role as CEO of Patou at LVMH to lead Chanel's inaugural circularity division, reflecting some optimism for the house. Valuing Chinese Gen Z perspectives It has been a difficult year for many luxury labels, particularly in China. Yet, the market remains a crucial one. And given the growing influence of China’s Gen Z consumers, their sustainability values are a powerful force that businesses cannot afford to ignore. Shanghai-based public relations employee Dabria Wang is part of this new generation of luxury consumers shopping with sustainability in mind. “I’m definitely spending in an increasingly more conscious way,” she tells Jing Daily. “As a vintage and remake lover, buying clothes naturally becomes a way to support sustainable fashion.” In April, TikTok Shop increased its price limit to 4,000 British pounds ($5,077), enabling verified sellers including overseas Chinese Gen Z to offer secondhand luxury items on the platform, making it more convenient for users to purchase brands like Chanel. But Chanel’s low sustainability ranking does not seem to be directly impacting its reputation, despite Gen Zers shopping more eco-consciously. The French house is one of the most popular brands on Douyin for influencer engagement. On a broader scale, it is also one of the major luxury houses that saw revenues rise in 2023, up 16%. Long-term luxury investment “In recent years, I have also paid more attention to the reusability and long-term practicality of clothing when shopping,” says Wang. This pivot toward clothes as investments is directly impacting trends — “quiet luxury” has boomed over the past two years, to the extent that it has even spurred store openings despite China’s subdued economy. Fellow Shanghai-based Gen Zer Nicki Zhang, a sportswear marketer, says, “I think about sustainability when I buy clothes. But it’s just that I prefer to buy clothes that I can use for a longer time.” As a high-end company prioritising craftsmanship, Chanel does not skimp on quality, which leaves it greenlit among Chinese Gen Z for durability. “I consider a brand’s sustainability philosophy,” says Wang. “But compared to the design, texture, personal preference, and cost-effectiveness, sustainability is usually not a decisive factor — except involving products like animal fur or similar materials.” In 2018, Chanel was the first luxury fashion house to ban the use of exotic animal pelts like lizard, crocodile, and snake skin across its collections. Improved brand awareness, transparency “My friends care about sustainability,” says Zhang. “I think recently there has not been as much sustainability communication from brands compared to several years ago, maybe because consumers realize that consumption and fashion itself is not sustainable, so brands deprioritize sustainability communications.” Potential greenwashing (projecting sustainability practices as a marketing tool) can spur boycotting among the rising number of well-educated netizens, thus brands are treading more carefully in 2024. However, improved transparency could help ameliorate sentiment among the new luxury consumers of younger generations, especially for Chanel.

China’s Gen Z on Chanel’s sustainability problem

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Published November 29, 2024

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China’s Gen Z on Chanel’s sustainability problem