When you buy from a luxury brand, you’re buying more than just the product. You’re buying into an old heritage, or an innovative design philosophy, things that other non-luxury brands seem to lack.
In that spirit, a lot of luxury brands have embraced modern technology to make their products even more desirable – here are three examples.
Phygital Products
Over the past few years, we have seen ‘phygital’ gain prominence. This physical and digital portmanteau describes products you can hold, but they have some hidden digital surprise or experience. In the luxury world, Dior have made innovative strides to a luxury phygital product with the release of their Dior B33 Sneakers. This product not only serves its purpose as a fashionable pair of shoes, but it also contains a secure NFC chip and authentication NFT placed under the sole of the right foot. As phygital products grow in popularity, we can expect similar products from luxury brands across the globe.
It’s far from the first time we’ve used digital tech to expand on real-world experiences. Before the phygital trend, industries like iGaming have found success by recreating casino games over the internet. They keep vast libraries where visitors can play European Roulette online, alongside other table games and themed slots. They are some of the earliest examples where a digital service sought to recreate an experience from the physical world. Today, many other industries are following suit by moving services online or integrating digital elements into otherwise physical products. Naturally, luxury brands have the means and the innovative minds to lead the charge.
NFT Product Authentication
Before phygital, we also saw luxury brands buying into non-fungible token (NFT) tech to provide proof of ownership for their products. While the NFT craze of 2021 is far behind us, the underlying technology is useful when trying to create scarcity in a digital economy. Luxury brands thrive off scarcity and exclusivity, so it makes sense that big names like Burberry, Balenciaga and Gucci have leveraged NFTs. New luxury NFT collaborations are happening every day, tracked here by Vogue Magazine.
Many luxury markets have struggled with counterfeit products, but NFTs can solve that problem. They essentially provide owners with a digital deed of ownership for the product in their hands, authenticating it as the real deal. That NFT is contained and validated by a chip in the product itself. This kind of product authentication can help with re-sale or, for certain brands, can be used to gain entry into exclusive events made for fans.
The LVMH AI Factory
Like many other industries, luxury brands are also looking into AI – specifically the generative AI that has taken the world by storm since early 2023. More than any other brand, LVMH is pushing boundaries with its own AI Factory. For a while now, LVMH has made it clear they plan to pursue gen AI to improve customers’ experience in Asia and the rest of the world.
The result is LVMH’s AI Factory, a collaboration with Stanford University’s Institute for Human-Centered Artificial Intelligence. They plan to integrate AI into every step of the process, so designers can be more productive, trendsetters can get better data for consumer sentiment and customers can enjoy a more seamless, personalised buyer’s journey.
These are three of the biggest tech trends in luxury brands right now. They are also very early in adoption, so we can expect these trends to continue and mature in the next few years.
