Sustainable innovation and digitalization in luxury brand management

Abstract

The luxury industry, historically characterized by opulence and exclusivity, currently finds itself at a pivotal juncture where the incorporation of sustainability may redefine its value proposition and ensure enduring relevance. The increasing consumer focus on environmental, social, and ethical business practices is compelling companies within this sector to reevaluate their operational models. This study explores how luxury brands can transform sustainability from an operational constraint to a strategic and symbolic lever through innovation and digitalization. Through a systematic review of peer-reviewed literature indexed on Scopus, 57 articles were selected and analyzed bibliometrically and qualitatively. The analysis identified seven main thematic clusters, including brand strategy, sustainable innovation, consumer behavior, communication, eco-innovation, cultural dimensions, and digital transformation. The results highlight how sustainability, integrated with digital and cultural innovation, is redefining luxury brand identities, strengthening authenticity, traceability, and consumer engagement. The study represents the first systematic literature review on the intersection of sustainability, innovation and digitization in luxury. It also discusses the practical implications for businesses, from the adoption of alternative consumption models to the enhancement of territories and craftsmanship and outlines future research directions.