Thursday, May 7, 2009

Gucci goes green

The luxury brand is getting more eco-friendly, but that could open its brands up to some unwanted scrutiny.

By Peter Gumbel, Europe editor

sergio_rossi_pump.03.jpg
Sergio Rossi's stiletto shoe - the Eco Pump - has a sole and heel made of liquid wood.

LONDON (Fortune) -- Frida Giannini, the creative director of Gucci, has designed a $185 limited-edition T-shirt made of organic cotton and natural dyes. Sergio Rossi is launching a stiletto shoe called the Eco Pump, whose sole and heel are made of liquid wood.

At Bottega Veneta, there's a specially-designed environmental tote bag free for customers spending more than $1,500, and Alexander McQueen has come up with a signature scarf featuring a picture of the earth morphed into a skull.

0:00 /1:57Luxury shopping perks

The Gucci Group is going green big time next month, to coincide with the launch of a new movie about the plight of the planet Earth that is being sponsored by Gucci's parent, France's PPR Group.

The movie, called "Home," is by French aerial-photography specialist Yann Arthus-Bertrand, and will be released worldwide on June 5 in movie theaters and on TV in more than 80 countries - and especially online.

Google has agreed to stream the high-definition movie on specially-dedicated YouTube pages for 10 days. In the U.S. it's being distributed by Fox and will be shown on the National Geographic channel.

At a time when sales of luxury goods are reeling from the economic slump, giving brands a green tinge amounts to a different - but potentially risky - way of keeping them in the public eye.

François-Henri Pinault, the CEO of PPR, whose $13 million sponsorship covered most of the movie's costs, insists that he's not supporting the project for its potential effects on business, but as part of a bigger commitment to reduce the company's environmental impact.

"We're not doing this for our revenues," Pinault told Fortune. He acknowledges that there's a risk for a consumer-goods company putting so much emphasis on ecology since it opens the various brands up to criticism of any production methods or products that don't meet a high environmental standard.

"No brand is perfect," Pinault says. "It'll be the responsibility of the brands not to disappoint." He gives one example: "I hope Frida (Giannini) will now say no to using fur."

Whatever the motive, it's an opportunity that the Gucci brands aren't letting pass by - and are eager to tell the world about their philanthropy. Profits from most of the products will be donated to a charity that Arthus-Bertrand founded.

Stella McCartney may end up making the biggest splash. A vegetarian who has long refused to use leather or fur in her designs, McCartney is planning to host a special screening of the movie at her store in West Hollywood on June 5 with a range of VIPs in attendance, including Laura Dern, Ben Harper, Anjelica Huston and Salma Hayek - who is married to Pinault. To top of page

Tuesday, May 5, 2009

Buyers Prove More Cost-Conscious than Eco-Conscious

by Bob Makofsky bmakofsky@conformerinc.com

April 28, 2009 · No Comments

I love trees - don’t get me wrong - but I am just now shaking off my Earth Day media hangover. My favorite misguided environmental piece argued the environmental impact of bicycle frame materials: specifically, whether carbon fiber was recyclable or not, and if it was more environmentally responsible to buy a steel bike.

We have been marketing environmentally conscious mailing products for some time. I can say from experience that many companies are missing the environmental mark. Consumers and corporations talk about making purchasing decisions based on environmental factors, but when it comes time to hand over the credit card, everything circles back to price.

I point to the hybrid car market as a perfect example. Sixteen months ago, there was a three month waiting list for a Toyota Prius. Fuel prices were near $4. But now that fuel has dropped to $2, Toyota is offering Prius rebates. Hybrids cost more, and with a sudden drop in fuel costs, hybrid sales went “From 60 to 0 at breakneck speed.” What happened to carbon footprints and dependence on foreign energy?

There is no mystery here. Environmental consciousness is terrific, but at the end of the day, consumers and corporations will only buy an eco-friendly alternative if it performs the same task and costs the same or less than traditional products.

by Bob Makofsky bmakofsky@conformerinc.com