Luxury in the Circular Economy: An Engagement Journey Perspective

ABSTRACT How to engage consumers with circular economy principles in the luxury industry? To answer this question, this paper focuses on the engagement journey of consumers embracing circular luxury. Drawing from a life story interview approach with consumers of second‐hand luxury fashion, we identify three engagement journeys: (1) the price‐sensitive journey, (2) the uniqueness journey, and (3) the sustainability journey—each characterized by specific motives (ranging from self‐interest in the form of searching for lower prices to more altruistic motives concerning keeping products in use) and manifestations of engagement (ranging from nonbehavioral to behavioral engagement with circular luxury) in response to firm‐controlled and non‐firm‐controlled touchpoints. The findings carry important implications for both companies and society as they show how a more ethical consumption behavior can be encouraged in the luxury industry.