Has the time come for luxury to be revolutionized, incorporate new technologies, adapt to the changing world? The question deserves to be asked when we consider that for the first time in 20 years (1975 to 1995) the global luxury market has inverted its grown curve (- 1%). First of all, let’s look at this sector, which is unlike any other, before discovering some successful avenues for incorporating new technologies.
Luxury – a sector apart
As pointed out by Jean-Noël Kapferer, global expert on brand strategy, the luxury business model is based on scarcity, guaranteed quality and a sense of privilege. Thus its marketing is a subtle play between presence and absence. To prevent technologies (websites, sales platforms…) from bringing success – even too much success – the luxury players have to develop market strategy based on “artificial scarcity” by resorting to artist signatures, limited series or time-limited scarcity. It is understood that all companies operating in the luxury sector do not think this way, even if they would like to! Many must now innovate, increase their R&D investments, create their own revolution if they don’t want to completely disappear. This change is also an opportunity to reach a new clientele from emerging markets (mainly in China), but especially to adapt to its new customers, digital natives who were born with a smartphone in their pocket.
Technology at every stage
When we talk about luxury, the craftsman is never far away. This know-how and this tradition transmitted from generation to generation assures quality of the product. What about technologies in craftsmanship? To prevent our creative craftsmen from disappearing, they have to incorporate technologies, whether in design, fabrication or marketing of the product. A good example is Sericyne, which has become the leading company in the world to produce natural silk in 3D, offering even more solid, brighter and more glittering silk that has become the greatest joy of interior architects and creative people of all kinds. In another field, who would have thought that the craft of the tailor would survive the mass ready-to-wear market? Through its concept of “key cutting”, Le Chemiseur has seen tremendous success with customers who want to have a perfect fitting shirt in the fabric of their choice. The result is that by visiting the website and then entering six key measurements (neck size, arm length…), the shirt of your dreams is in production. Finally to respond to the changes in luxury that is moving from the culture of having to the cult of being, technology has enabled the development of collaborative platforms on which customers can come to discuss – as is done with an apartment – a luxury outfit (which would have been unreasonable to buy), to have an out of the ordinary experience at the time of a particular event (wedding, art unveiling…).
Being several decades behind, the luxury sector must now integrate technologies to respond to a new clientele and new needs, keeping in mind the words of François-Henri Pinault: “Our mission is to guarantee that luxury stays true to its image (…) and (that it) is exposed in the light of technological innovation without being blinded by it.”