Emerging technologies in the management of luxury brands

Abstract

The “Emerging Technologies in the Management of Luxury Brands” chapter explores the impact of technological developments on brand management. It highlights the potential for luxury brands to engage younger consumer segments by integrating digital innovations while still preserving traditional brand values - a necessity in order to retain the exclusivity in line with luxury brand strategy. As technology investment rises in the luxury sector, brands leverage robotics, artificial intelligence (AI), blockchain and the metaverse to offer more immersive and personalized experiences. The chapter discusses various examples, such as the Aura Blockchain Consortium, which enhances transparency and authentication in product purchases, as well as innovative collaborations such as Tiffany’s CryptoPunk NFTs, which combine art, rarity and technology to appeal to digital-native consumers. The chapter also addresses the role of NFTs in digital ownership, the potential of the metaverse as a space for experiential luxury, and the challenges of aligning digital initiatives with the exclusivity and heritage of luxury brands. By examining these developments, the chapter demonstrates that luxury brands must deal with complex digital landscapes to remain relevant and innovative, engaging future generations through new digital experiences and web3 technologies.