Reframing luxury: The role of luxury brands in shaping Industry 5.0

This article examines the intersection of luxury brands and Industry 5.0, a new European Commission policy initiative that promotes human-centric, sustainable and resilient industrial practices. Industry 5.0 advocates for production processes that extend beyond efficiency to integrate social, environmental and human well-being. The article argues that luxury brands are uniquely positioned to lead this shift, as their emphasis on craftsmanship, longevity and exclusivity is already aligned with the principles of responsible consumption. By redefining their value narratives, luxury brands can future-proof their businesses while driving broader societal change. Furthermore, luxury brands’ potential to drive resilience, through decentralized supply chains and a focus on local ecosystems, presents a model for more robust and adaptable business practices, while demonstrating how industry can operate within planetary boundaries while enhancing quality of life. Ultimately, the article proposes that by becoming early adopters of Industry 5.0, luxury brands can redefine the concept of luxury and set a global standard for aligning profit with purpose in the pursuit of a sustainable future. The article also includes a set of practical recommendations for industry executives on how this can be effectively achieved.