Innovation

Building on this founding vision, the innovation of Palais Sustainable Luxury focuses not only on creating new types of products, but on transforming how those products are made and marketed. As Michiel (one of the founders) noted during the interview, “We’re not a company with a “kickstarter”-type revolutionary product, but what makes us different is the motivation behind everything we do”. Their business model embeds sustainability, fair labor, and transparency into every part of the supply chain, from fabric sourcing to production and distribution.

Palais works closely with a curated network of small-scale suppliers and artisan groups, focusing on long-term relationships, low-volume production, and full supply chain visibility. Rather than outsourcing blindly or chasing scale, they emphasize traceability and waste reduction through tight collaboration. As Michiel explained, they operate with “a limited range of raw materials”, which makes transparency more manageable and enables them to maintain both ethical and environmental standards across all levels of production. This model directly contributes to SDG 12 (Responsible Consumption and Production) and SDG 8 (Decent Work and Economic Growth).

Furthermore, their influence extends beyond their own operations. Palais collaborates with suppliers who are often unfamiliar with strict sustainability standards – and challenges them to do better. One supplier was surprised by their approach, saying, “You are not allowed to print the logo, yet you still pay extra for the certified materials”. As Michiel explained, the goal is not to chase eco-labels, but to ensure that raw materials are genuinely sustainable, workers are paid fairly, and business processes are safe. This integrity-driven approach sparks ripple effects in the supply chain and supports SDG 13 (Climate Action) by properly encouraging deeper environmental responsibility across the industry.

Inspiration

The founders of Palais Sustainable Luxury, Michiel and Petra, share a deep-rooted drive to create positive impact. As Michiel explained, “My business partner Petra and I had a real drive to make an impact in a positive way.” With a background in International Development Studies, Michiel had long envisioned contributing to a fairer, more beautiful world—even if his career initially took another direction. “The drive to contribute in that way, to help build a more just world, has always been there,” he added.

The inspiration for their business emerged while working for a non-governmental organization (NGO) in India. There, they encountered communities rebuilding their lives after surviving human trafficking. “These people were rebuilding a future, had many talents, created beautiful things, but lacked access to fair trade,” Michiel said. The NGO invited them to explore possibilities for a pilot project with the European market. This marked the beginning of their journey.

Starting small, they launched a pilot brand focused on finely embroidered blankets from Eastern India. Their aim was to create something meaningful through a business rooted in fairness and sustainability. “I think even in the early days, we made an impact—because this vision was already part of who we are,” Michiel reflected. That same motivation and sense of purpose continue to guide Palais today.

Overall impact

In the short term, Palais generated life changing opportunities for women in India, who are victims of human trafficking. These women now have economic autonomy and dignity by producing handmade home goods.

In subsequent years, Palais has reinvented their supply chain. Their active involvement has resulted in fair job opportunities at the supplier level. This ripple effect creates system-wide shifts in awareness and standards, even among larger market players. Another goal they had was to be sustainable in the sense of sustaining a business. Since the founders had worked for an NGO in India and saw the great benefits, they were inspired. However, as the NGO model was not sustainable, they decided to start a for-profit business that they are now able to sustain, since their products are sold in some of Europe’s biggest luxury department stores; “Not only is it fair and sustainable, but it can also support itself as a business that can continue to exist”.

Business benefit

Palais has grown from two founders to a team of ten, supported by twenty freelancers, now serving hundreds of B2B clients and thousands of international customers—demonstrating strong business growth and expanding market reach.

Palais' revenue comes from a mix of B2B partnerships like interior design retailers and direct-to-consumer online sales, with a strong presence particularly in Germany and the Netherlands. Their transparent supply chain, along with close collaboration with small-scale artisan groups and family-run manufacturers, allows them to operate efficiently without the overproduction problems faced by larger retailers. As the founder explains, this business model proves that it is possible to support a growing company financially while prioritizing ethical impact and resilience over maximum margin.

Furthermore, Palais is actively involved with improving, innovating, and expanding their line of products. “One step we have already taken, which is quite unique, is that we produce on a very small scale and that we produce high-quality outdoor fabrics coating-free.” Coating-free indicates that, for example, the cushions are manufactured without chemical surface treatment. Think of waterproofing, flameproofing, and stain-proofing. These practices are commonly used in the textiles and furniture industries. In this case, Palais is a first mover in cushioning for outdoor furniture. As a result, Palais not only stands out in the design world but also benefits from enhanced employee engagement, stronger supplier relationships, and long-term market credibility.

Social and environmental benefit

When looking at the aspect of how this innovation improves society and the environment, several positive aspects surface. First of all, even though it is currently a smaller part of the supply chain, they are giving social businesses in India the opportunity for a job that offers a fair wage and good conditions. Therefore, these (often) women have a fair chance of being independent. By countering the oppression experienced by women, they can independently care for themselves, their children and their lives overall. Palais Sustainable Luxury creates awareness of their supply chain towards shops, interior designers and customers. Most do not buy their products for this reason, but are pleasantly surprised afterwards by this development. Finally, several products are also manufactured by small, artisanal family businesses within the EU. By choosing this, customers do not only support craftsmanship and local economies, but also contribute to a more sustainable production model.

From an environmental perspective, this innovation supports a lot of sustainability practices. They use organic fabrics, like organic cotton, which is considered much more environmentally friendly than conventional fabrics. Organic cotton is grown without harmful chemicals and uses way less water while protecting the local ecosystem. The supply chain is transparent, so it is easy to keep track of this. They do not have a large overstock, so nothing needs to be dumped, and they make sure that they have almost no waste. Lastly, their outdoor items, such as furniture and cushions, are produced on a small scale and coating-free (without chemical coatings), and are 100% recyclable.

Interview

Michiel van Heusden, Founder