What: A new study suggests that luxury brands need a coordinated approach to attract top talents and make advanced applications available to smaller players due to an increase in new technologies in the sector.

Why it is important: While luxury brands remain relatively technology-adverse, the sector is on the edge of a revolution that will see more widespread adoption of everything from artificial intelligence to blockchain and 3D imaging.

More than half of respondents plan to become involved with the metaverse and NFTs, making them by far the dominant technological trends between now and 2025, and positioning luxury brands at the forefront of the Web3 revolution. The use of 3D imaging is already widespread, with 45% of luxury firms having utilized the technology.

One of the many hurdles cited by companies is a lack of internal know-how, linked to the industry’s historic focus on design, craftsmanship and marketing, with 37% of companies saying they lack the talents to support their technological ambitions.

While most efforts are focused on client engagement, luxury firms are also investing and innovating in operational excellence, a term which covers issues such as inventory management and product traceability, and sustainable development. These have the potential to greatly reduce the carbon footprint of luxury goods.

The report identified 16 technologies and questioned executives from companies on their development plans for the next three years. Results show that on average only 2.3 technologies out of the 16 mentioned in the study have been adopted. They are testing on average 3.2 additional technologies, or plan to do so in the next three years.

This is a key moment in the technological revolution for the luxury sector and it is important to lay down the foundations today in order preserve and increase its desirability in a rapidly changing environment.

A technology revolution is coming; luxury brands must act