1. 40

Form Sent!

How luxury brands have adopted new technology in the era of digital age



The digital environment is rapidly changing, and change is inevitable so must be embraced by any company that aspires to thrive within the target market. The same applies to luxury brands, even though innovation and luxury are elements that are often considered difficult to combine.
Some of the biggest luxury brands, though, have managed to apply the new technology and therefore differentiate within the competitive market. Some of the technologies applied are listed below:

‘Phygital’ landscapes

The evolution of e-commerce has created a demanding consumer that seeks for extra experiences and services that reinforce the brand value. ‘Phygital’ is a term referring to the incorporation of these services into the bricks and mortar experience. This indicates that the consumers have access to choices like virtual mirrors or no options like hyper-personalised loyalty schemes (ex. pop-ups on smartphone when passing by a certain store). Luxury fashion houses like LVMH have been upscaling their internal technology capabilities, as they have appointed for the position of chief digital officer a former senior executive from Apple.


Smartphones and broadband internet are rising in usage among middle-class households in developed markets. Drapers study showed that the age-group most likely to shop via mobile are 25-34 year olds, and a Luxury Institute survey showed that 67% of affluent smartphone users tend to shop on their devices. Instagram took advantage of this trend and added the functionality of ‘tap and view’ at the published photo, allowing the Instagrammers to easily proceed in the shopping of the displayed products.

Social media – Snapchat

Luxury brands in order to remain relevant for the next generation of luxury consumers need to follow the technological trends of social media as well. In particular, Snapchat today has reached 150 million daily active users internationally, with 60% of that belonging to the age group of millennials, which are due to be fastest growing spending power by 2018-2020. Burberry is one of the leading digital and innovating luxury brands that adopts open innovation strategies to expand its brand reach and engagement. That is proved from the fact that it was the first brand to shoot and publish its advertising campaign live through Snapchat.

The digitalisation of retail is rapidly evolving and technology will be the key determinant of future success in fashion and luxury brands.

Follow us on Twitter: @Noiragency