Never in history has the fashion and luxury industry seen such a pervasive presence of technology and digital innovations as it does today. ULTIMZ Journal recently hosted a webinar that delved into the impact of technology on various aspects of this sector, including retail, sustainability, and marketing. In collaboration with CBNews and Paris School of Luxury, and in partnership with Centric Software, the webinar attracted an impressive 1,600 registered participants.
During times of crisis, the role of technology in facilitating the economic recovery of the luxury industry is crucial. Once considered a slow adapter to e-commerce, the sector has swiftly demonstrated its tech agility to bounce back. As a result, online sales now comprise 23% of luxury sales, and experts predict that it could soon become the primary channel for transactions by 2025. The combination of technological advancements, such as blockchain and NFTs, with creative excellence has become vital for the future of luxury. These initiatives offer new avenues for digital exclusivity and more robust data than ever before.
Sustainability is a key concern in today’s luxury industry, and one area where technology plays a significant role is in Product Lifecycle Management (PLM). According to Christophe Therrey, Sales Director EMEAR at Centric Software, PLM contributes to the longevity of luxury. By digitizing the entire product development lifecycle, companies can make strategic choices that align with business insights and sustainability goals. During times of supply chain disruptions, like those experienced during a crisis, PLM enables companies to navigate complex processes and identify alternative suppliers. Additionally, it ensures the traceability of processes, products, and materials while preserving the brand heritage for future generations.
While technology holds immense potential for advancing sustainability in luxury, it also needs to engage in self-reflection. Inès Leonarduzzi, President of Digital For The Planet and author of “Réparer le futur,” highlights the need for responsible technology that serves the common good. Leonarduzzi defines digital ecology as the study of the interrelations between humans, machines, and the environment. Brands must lead by example by considering their negative externalities, including in the realm of digital ecology.
Technology is not only transforming sustainability efforts but also plays a valuable role in storytelling and corporate social responsibility (CSR) within the luxury industry. While luxury brands initially viewed digital technology as conflicting with their core values, they have gradually embraced it to inject emotion and share their narratives. Innovations in brand content, such as the rise of audio formats and the popularity of gaming, have allowed brands to unleash their creativity and captivate younger generations. Augmented reality (AR) has proven to be a particularly valuable tool for enhancing brand content. The closure of physical stores due to the pandemic has accelerated the need for mobile storytelling strategies. Snapchat, with its vast user base of over 200 million daily users engaging with AR, offers both entertainment and opportunities for engagement and purchasing, as demonstrated by the success of Dior’s recent virtual fitting campaign.
The power of e-commerce is exemplified by Zadig & Voltaire, generating over 26% of sales online. The brand has been embracing the digital realm for over 15 years, but it has seen significant acceleration in the past 18 months. CEO Rémy Baume explains their no-channel strategy and underscores the promising prospects of immersive entertainment, as exemplified by live shopping.
Maud Funaro, Director of Transformation at Printemps, discusses the concept of “inverted omnichannel,” which merges technology with human touchpoints. The objective is to extend the physical experience of a traditional department store beyond its walls. Sales advisors are empowered with a range of value-added technological tools, transforming the customer relationship from transactional to emotional. Funaro envisions the future of department stores as spaces for both commercial and non-commercial experiences that foster connections and encounters.
Lastly, the tech industry is working to tackle the challenge of building trust. Pierre-Nicolas Hurstel, CEO, and co-founder of Arianee, explains that blockchain passports ensure the traceability and security of luxury objects, while NFTs represent a new form of digital exclusivity. Technology has the ability to create scarcity, making luxury items even more desirable and exclusive.
In summary, the fusion of technology and luxury is ushering in a new era for the industry. From sustainability to storytelling, from retail to trust-building, technology is reshaping the landscape of luxury. As the industry navigates the challenges and opportunities of the digital age, it must embrace responsible and purpose-driven technology to ensure a future of sustainable luxury.
Useful Links:
– Blockchain in Luxury Retail
– Gaming as a Tool for Luxury Brand Engagement
