BLM? 'All Lives Matter' Is The New Motto Of Luxury Brands

Top names in the luxury industry posted messages of support on social media for the Black Lives Matter movement. Yet many of these brands lack diversity in their ranks and, are open to severe reputational damage as Prada, Gucci & Dolce & Gabbana have each learned from their recent high-profile missteps.

Prada appointed its first chief diversity officer to respond to tight scrutiny of their progress on diversity. This was followed by an investigation by the New York Commission on Human Rights into Prada’s diversity. Inclusion practices that in February led to its Milan origin executives including Head Designer Miuccia Prada and her husband and Chief Executive Patrizio Bertell are agreeing to undergo “racial equity training”. The Italian luxury fashion house had come under fire in December 2018 after Chinyere Ezie, a civil rights attorney, spotted a pair of black, Sambo-Esque monkey figurines in Prada’s SoHo store in New York. Prada swiftly issued an apology and removed the offending merchandise.

Gucci hired a diversity chief last year following a backlash for retailing an $890 jumper also said to resemble blackface. Burberry and Chanel have also hired diversity leads in the past two years.

Cartier-owner Richemont narrowly missed out on the final list. However, the Swiss group hired a director of diversity and inclusion and is creating similar positions across its brands and geographies.

Gucci’s French parent Kering, who in recent years have been commended for the high representation of women on its board 1/8th of its 13 board seats are held by women, ranked 715th. It performed less well on age and ethnicity than the likes of Hermès or Giorgio Armani.

A Boston Consulting Group study found that companies with above-average diversity within their management reported innovation revenue that was significantly higher than that of companies with below-average diversity at 45% of total revenue versus 26%.

The brands performed strongly on ethnicity and diversity in general last year to score between 3.4-4.2 out of 5 on race. Yet its most significant improvement is on gender & disability.

Enthusiasts & Researchers say the luxury industry still has a long way to go in terms of ethnic diversity, and that it lags behind its counterparts in the broader fashion space.

These are all positive signals that the $318bn+ industry is making progress not only on racial diversity but also in the more excellent representation of women, disabled or above the median age.