In an active response to the global cost of living crisis, CEO Consult notes luxury fashion brand Burberry, has fast tracked the increase to real Living Wage by over six months, effective, October 2022.
Leading fashion consulting and restructuring expert, CEO Consult’s Managing Director, Luca Montaldo, said the relevancy of this Living Wage increase and its timing, reflects its significance in branding and positioning strategies.
“There is a progressive and definitive shift from some leading fashion brands as they respond in real terms to the cost of living upheaval and increasing concern of the welfare of employees from educated consumers” he said.
Research identifies employee welfare as key influence on consumer decision to purchase
Based in London, the UK’s Living Wage Foundation has increased it’s real Living Wage by 10.1% year on year. With thousands of Living Wage Employers already committed, the movement is gaining increasing attention and momentum.
CEO Consult’s Montaldo, addresses research as a significant factor of impact in the creation and development of fashion branding and positioning strategies.
“As markets constantly evolve, highly researched consumer patterns continue to be critical to innovative fashion consulting strategy, reputation, and maximum profit margins “he said.
As highlighted in MORI Changing Markets’ Summary, approximately 52% of consumers would be deterred from purchase if employees were not paid a fair Living Wage. In addition, 3 out of 5 people would pay more for fashion produced by those paid a Living Wage.
Fashion Revolution Consumer Survey also revealed 61% of potential purchasers wanted to know what fashion brands were implementing to protect their worker’s human rights.
Real living wage differs from minimum wage
As fashion markets become increasingly aware of the background story of purchases, it is relevant to clarify the differentiation between Living Wage and Minimum Wage.
A Living Wage is what an employee earns to cover their own basic needs – including the unexpected. The Minimum Wage is the lowest legal wage an employer can pay an employee, and usually this is not considered enough to suffice basic needs.
CEO Consult’s Montaldo, advises the differentiation between Living Wage and Minimum Wage is critical when it comes to the discerning fashion consumer.
“The Living Wage movement is gaining momentum across the United Kingdom and is an ever increasing pivotal response to consumer choice” he said.
