In a recent study conducted by analysis firm Bain & Company for the Comité Colbert, 75 French luxury houses were interviewed to gain insights into their relationship with new technologies. The study revealed that, on average, luxury houses adopt 2.3 new technologies, indicating a gradual but noticeable shift towards technological integration.
The study identified 16 fields of innovation that luxury houses are exploring, including biotechnology, molecular recycling, 3D printing, artificial intelligence, machine learning, augmented reality, virtual reality, and blockchain, among others. However, the adoption rates for these technologies are still relatively low, with only RFID, 3D printing, and imaging surpassing a 30% adoption rate, according to the report.
The slow adoption can be attributed to the challenges of aligning these new technologies with the specific needs of the luxury sector, as highlighted in the study. Additionally, the lack of internal skills within the industry also contributes to the slower adoption rate. It is worth noting that group-owned houses tend to adopt more technologies compared to independent houses, likely due to the availability of resources and expertise.
Despite the current adoption rate, luxury brands show a strong interest in integrating new technologies into their strategies. The study revealed that the surveyed houses plan to test an average of 3.2 additional technologies within the next few months to three years. This reflects the industry’s creativity, novelty, and adaptability, as luxury brands strive to stay at the forefront of technological innovation.
One of the primary objectives of leveraging these technologies is to enhance customer engagement, which has become crucial amid the disruptions caused by the COVID-19 pandemic. Luxury brands aim to utilize immersive tools such as augmented reality and virtual reality to create engaging experiences for their customers. Another area of focus is the use of NFTs, with 51% of luxury players currently in the testing or planning phase for NFT launches before 2025. This figure rises to 72% for houses belonging to larger groups.
Operational excellence is also an emerging priority, with luxury brands seeking to optimize overall supply chain processes through the practical applications of RFID, blockchain, and artificial intelligence. Additionally, sustainability is a major lever for the industry, with an increasing emphasis on eco-responsible practices. While new technologies are not yet widely seen as ways to reduce carbon footprint, there is a growing interest in biotechnology and high-tech solutions to optimize production flows and address stock and waste management issues.
This study highlights the luxury industry’s commitment to embracing technological innovation and exploring its potential across various applications. The integration of new technologies not only enhances customer engagement but also drives operational efficiency and sustainability within the sector.
Useful links:
– Bain & Company – Technology in Luxury: A Two-Speed Industry
– Comité Colbert
