The increasing digitalization of the luxury sector, along with its stakeholders’ evolving expectations of sustainability, has disrupted luxury brands’ business models (BMs). These changes have made it necessary to be able to track items, raw materials, and production stages. Using the leather industry as a case study, this research explores how traceability can influence the sustainable evolution of a luxury brand’s BM throughout the supply chain. Given the leather supply chain’s complexity and considerable impact on the environment, this research highlights the need to use traceability as a tool to create value and foster the development of alternative BMs. To date, however, research on traceability as a sustainable tool within the luxury industry has been scarce. Our study finds that traceability is not inherently associated with sustainability, although it can address emerging sustainable challenges and support the sustainable transformation of luxury brands’ BMs. Moreover, the scope and multiple benefits identified require extensive collaboration among all supply chain participants, which can be difficult to achieve. Finally, we confirm that technological advancements enhance corporate responsibility and promote more ethical and sustainable BMs.
