Evolving Paradigms of Sustainability in Luxury Fashion: Evidence From an Emerging Market

ABSTRACT The global fashion industry is both an economic driver and a major contributor of environmental and social challenges. This research examines how sustainable luxury fashion is constructed and adopted within an emerging market context by integrating perspectives from entrepreneurs, industry managers, and consumers. Utilizing a mixed‐methods approach and drawing upon Self‐Identity Theory and need for uniqueness, this research explores how identity‐based motivations shape sustainable luxury consumption. Study 1 employs in‐depth interviews with luxury fashion entrepreneurs and practitioners to uncover how sustainability is embedded within luxury value propositions. Building on these insights, Study 2 quantitatively tests a conceptual model examining the relationship between NFU and sustainable luxury purchase intentions, mediated by identity‐based constructs. Results reveal that green self‐identity significantly mediates the NFU–intention relationship, whereas minimalism, cultural fusion, and quiet distinction do not exert significant mediating effects. These findings suggest that the desire for uniqueness translates into sustainable luxury consumption primarily when aligned with internalized environmental identities rather than purely esthetic or cultural differentiation motives. By bridging entrepreneurial and managerial strategy with consumer psychology, this research advances theoretical understanding of identity‐driven sustainable luxury consumption and provides actionable insights for brands seeking to reconcile exclusivity with sustainability in emerging markets.