Fashion, luxury and technology: big acceleration potential

Fashion and Luxury confirm once again that they are unavoidably connected to technology

A recent report by Bain & Company explains how the fashion industry is adopting digital innovations on a huge scale. “Luxury and technology: the beginnings of a new era”, the name of the study, demonstrates that every brand is in search of its own model.

NFT, metaverse and Blockchain

In the report just mentioned, Bain & Company calls upon each luxury brand of the Comité Colbert, industry group companies operating in France spoken about previously. One of the earliest pieces of evidence to emerge is how numerous brands of Fashion and Luxury have not resisted the temptation of NFTs and the unique digital creations associated with them.

Half of those interviewed has in fact stated that it is testing or will test the Non-Fungible Tokens and the metaverse by 2025. There is significant interest also surrounding Blockchain. Charlotte Morizot, Senior Director of the “Distribution and Luxury” division of Bain & Company, states in this regard: “we are rather convinced of the importance of these technologies, because they provide cases of applications that are relevant for the industry… We feel that it is meaningful to consider that this market segment will represent from 5% to 10% of revenue from luxury in 2030”.

The three strategic objectives of Fashion and Luxury

The innovations just examined, rather odd if you will, are nonetheless a symptom of a deeper reflection on the topic of technologies. From the study that we are commenting, therefore, what emerges is how the big brands have three specific strategic objectives when they invest in this area: customer engagement, operational excellence and sustainable development.

Joëlle de Montgolfier, executive vice president of Bain’s “Consumer Goods”, “Distribution” and “Luxury” divisions, explains this time: “for the luxury players, what opens the door is being able to offer a customer experience without continuity solutions, in which, moreover, you understand your customer perfectly. This is the main mission of technology. The other goal is operational excellence to provide precision and anticipation. Elements which have become much more central in the last two years, following issues with production lines and logistics”.

The wide diffusion of 3D and RFID

Let’s close with a question and a few percentages: what is the degree of involvement of luxury in technology? Actually, all the innovations were adopted by the industry, for 50% of the companies that use them. The one that stands out the most is 3D imaging, adopted by 45% of those surveyed, followed by 3D printing (35%) and RFID technologies (31%).

So, when the topic is technologies for Fashion and Luxury, it is impossible not to mention Bizeta Retail Solutions, who for 40 years now has been providing complete software and hardware solutions and services to the most important industry leaders.

Published on 10/11/2022 in Trends & Markets