How Technology Will Change The Game For Luxury Brands

Maria Elena Gonzalez, 22.12.2020

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Luxury brands, like any other industry, need to change and adapt to the times. Society is changing fast with the new technologies that come out every year, and one way to adapt is by introducing tech into their operations. These are the technologies that will change the game for luxury brands.

Artificial Intelligence

Artificial intelligence is being implemented across different industries to optimize how they operate, from giving better customer service to improving marketing strategies. AI is especially helpful on online and digital platforms, where companies can collect tons of data about customers and use it to improve their service.

Luxury brands will benefit from introducing artificial intelligence into their operations. After all, online sales of luxury goods will increase by 19 percent by 2025. For example, AI can be used to help companies identify who their audience is and when and how they are more likely to buy certain products.

How Technology Will Change The Game For Luxury Brands

Another example of AI application for luxury brands is personalization. Customers, especially younger generations, expect the same experience from luxury brands in brick-and-mortar stores than in online shops. AI can help by creating profiles of each client and providing an experience that makes them feel like the brand knows what they like.

Chatbots are another technology that many brands already use. It is also powered by AI. Chatbots are virtual assistants that provide customer service. Right now, they are only able to answer basic requests, but, in the future, they could replace real people in customer service.

Augmented Reality

Augmented reality is the mix of the real world with virtual components. Users can use their phone cameras or intelligent screens in different locations to have an “augmented” experience. Luxury brands have started using this technology recently. It sets them apart from the competition and it is a great solution now for social distancing with the Covid-19 pandemic.

How Technology Will Change The Game For Luxury Brands

For example, brands can use augmented reality to build smart fitting rooms. Customers can access the whole store from the fitting room with just a touch on the screen. They can also “try-out” clothes without actually trying them on. It is possible with a smart mirror that digitally puts the items on your reflection.

This is a new feature that many luxury brands are introducing on a smaller scale into their mobile applications. That way, customers can “try out” items by using their smartphone’s camera.


Blockchain is the new technology revolutionizing online security. This technology is the magic behind cryptocurrencies, but it has many more powerful applications. The reason it is so secure is that it is transparent, immutable, and decentralized. Those three characteristics make blockchain platforms really hard to hack. 

How Technology Will Change The Game For Luxury Brands

With luxury brands moving more to online sales, they will need a way to keep transactions secure and protect their assets and their clients. Blockchain can solve that problem by offering secure payment platforms. Software engineering companies already offer these services around the world. Overall, blockchain will increase brand trust, making it almost essential for any luxury brand.

How These Technologies Are Being Applied

Gucci used VR and AR back in their 2018’s Spring Summer collection. It used classic artwork with the characters dressed with items of the new collection. Customers could experience the painting like in real life. They also partnered with Farfetch to give a personalized experience. Customers can log-in when they enter the store and the staff will have access to what they like and give personalized suggestions.

MAC Cosmetics is another company that has used AR to improve user experience. They launched Modiface in 2017. Modiface is an in-store software that allowed customers to try on different products digitally. Now in 2020, the app became the pillar of their e-commerce strategies. Customers can use the software to try any product they want.

In Summary

Overall, the three technologies that are changing the game for luxury brands are artificial intelligence, augmented reality, and blockchain. They are helping companies improve customer service and the user experience.

This makes brands more relatable for younger generations that are used to interacting with technology since they were born. AI improves personalization, while augmented reality improves the user experience. Finally, blockchain will increase security while the industry moves to online platforms.

About the author

Maria Elena Gonzalez is a broadcast journalist and has been working as a tech writer for almost three years. During this time, her work has been published by companies like TechAccute, Trip University, and Entrepreneur.