The AGEC Law and Value Creation in the Luxury Sector: Circularity Strategies of Hermès, Kering and LVMH
DOI:
10.16928/e20261501004Keywords:
AGEC LAW CIRCULAR ECONOMY LUXURY SECTOR SUSTAINABILITY VALUE CREATION FASHION INDUSTRYAbstract
This study examines how major luxury groups have transformed the regulatory requirements of the French AGEC Law into opportunities for value creation five years after its implementation. Using a qualitative multiple-case approach and documentary analysis of corporate and sustainability reports, the research investigates the strategies adopted by Hermès, Kering, and LVMH between 2019 and 2024. The findings reveal a shared transition from practices initially driven by regulatory compliance toward more structured models of circularity and innovation. However, each group follows a distinct strategic approach: Hermès builds on durability, repairability, and craftsmanship; Kering emphasizes innovation, partnerships, and ecosystem-based initiatives; while LVMH adopts centralized governance through its LIFE 360 program. The study concludes that the AGEC Law has primarily acted as an accelerator of pre-existing sustainability strategies, encouraging the integration of circular economy principles into luxury business models and contributing to environmental, economic, and symbolic value creation.
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