Lessons From Luxury #5: Walk the Talk on Purpose

'Elegant Insights: Luxury Lessons for Life and Business' is a series of #12 invaluable lessons from looking, deeply beyond the glitz and glamour. For better margins, stronger loyalty, and elevated leadership - personally and professionally.

📖 Reading time is 5 minutes

Finding purpose in what people and organisations do is fundamental. It drives growth, shapes culture and inspires meaningful action. It’s perhaps counter-intuitive, yet the luxury industry not only creates the finest objects and experiences, but it also excels at putting a higher purpose at the heart of business.

“Luxury has a higher purpose: the achievement of real global value.”  Dr. Clotaire Rapaille

Luxury brands that live their purpose inside out include Marchesi Frescobaldi , Steinway & Sons , Loro Piana , Brunello Cucinelli and Hermès , to name but a few. Take Hermès for examople, with its purpose of "Keeping Craftsmanship Alive". It nicely links values of quality and sustainability, with an underlying assumption that luxury and craftsmanship are inherently human.

The Critical Role of Purpose Beyond Luxury

It’s surprising that most industries struggle to integrate purpose into their strategic foundation, given the positive impact it can have on business. Perhaps it’s because there are plenty of examples where the concept of purpose has fallen flat. Take failed WeWork for instance with its lofty purpose to “Elevate the world’s consciousness”. Say what? More on this in my full exploration of the topic in my full blog.

In short, when it comes to purpose, it is not enough to put some warm sounding words on a website. The concept of being purpose driven only works if you walk the talk. In this sense, the idea behind purpose has huge potential for decades to come.

There are great examples of how non-luxury brands are truly embracing and embedding the concept of purpose. TOMS (Purpose: 'to use business to improve lives'), for example, translates its purpose into concrete action: for every pair of shoes purchased, the company donates a pair of shoes to a child in need. Similarly, Warby Parker (Purpose: 'to inspire and impact the world with vision, purpose and style') stands out with its 'Buy a Pair, Give a Pair' program, which appeals to customers who value making a positive social impact with their eye-wear purchases.

An entire industry where being Purpose driven is becoming more apparent is the asset management industry, particularly within Europe. The sector is experiencing a multi-faceted dynamic of tighter regulation, increased investor scrutiny and an increasing expectation that the lever of capital can be employed to create positive change for societal development. Check out the Purpose statements of Candriam and DPAM for instance, taking the top spots in the global Responsible Investment Brand Index .

Authentic Purpose: The Key to Transformative Growth

Strong, purpose-driven cultures serve as the backbone of any organisation, guiding decision-making processes, shaping brand identity, and influencing how goals are pursued. In the quest for true transformation and sustainable growth, the journey from merely articulating a purpose to living it in every facet of organisational behaviour is critical.

“It's not hard to make decisions once you know what your values are.” Roy E. Disney

It is this authenticity in embracing and operationalising purpose that unlocks its true potential, driving culture, innovation and ensuring long-term success.

Here are five concrete tips to authentically harness the power of purpose:

1. Define your purpose: Engage in a deep process to discover your organisation's unique raison d'être beyond profit.
2. Communicate clearly: Articulate and communicate your purpose in a compelling and easy to understand way to all stakeholders.
3. Align actions with purpose: Ensure that every aspect of your business is aligned with your stated purpose.
4. Cultivate a Purpose-Driven Culture: Create a culture that encourages employees to connect with and contribute to your organisation's purpose.
5. Measure and report impact: Develop metrics to measure the impact of your purpose-driven initiatives and report these transparently.

What do you think, have you seen or experienced examples of purpose-driven cultures – luxury or not, good or bad?

Onwards and Upwards 🚀

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About: Markus Kramer is the MD at specialist consultancy Brand Affairs, advising Boards, Executives and Operational Teams on all aspects of Strategic Positioning, Reputation and Brand Management. He is a senior visiting Fellow in Strategic Brand Management at Bayes Business School and holds degrees from the Saïd Business School, University of Oxford, University of California, Berkeley Extension and Massachusetts Institute of Technology. He is the author of The Guiding Purpose Strategy© and Co-Author of the Responsible Investment Brand Index RIBI™.