Between

expertiseandinnovation,

howcanluxurycontinueto

inspire?

NOVEMBER2024

KPMG.MaketheDifference.

Contents

1

Luxury,digitalandnewtechnologies:

newdevelopmentsincustomerexperience

P.06

2

Sustainabledevelopmentandcorporatesocialresponsibility:

newdriversofinnovation

P.22

3

Completerestructuringofvaluechains:

whataretheprospectsforchange?

P.38

3

LUXURY,DIGITALANDNEWTECHNOLOGIES2

TheluxurysectorisanessentialelementofFrance’s”softpower”:thejewelinthecrownofitseconomyandthefruitofauniquehistory.Oftensynonymouswitheleganceandtimelessness,thesectorisconstantlyreinventingitself

asitconquersnewmarketsandreachesouttonewgenerations.Facedwiththechallengesofdigitalandenvironmentaltransitions,howistheindustrychanging?Howarebrandsmanagingtocombineinnovationwithwhatis

intheirDNA:thequalityofexceptionalproducts,exclusivityandexcellent

service?Whatdoesthefutureofluxurylooklike?Thisstudyistheresultofnumerousdiscussionswithpeoplewhohavefirst-handexperienceofthesechanges,bothprofessionalsandobservers,andwehopethatitwillprovidenewinsighttoanever-wideningdiscourse.

GUILLAUMEDESROTOURS

HeadofLuxury,KPMGFrance

3

4

INTRODUCTION

Istheluxuryindustryataturningpoint?Thisrecurringquestionseemsevermorerelevantasnewthemesemergeandtheindustrycontinuestogrow.

Untilrecently,thesector’sgrowthseemedunstoppable,withresultscontinuingtobreakrecords.By2022,thegloballuxurypersonalgoodsmarketwasworth€353billion(upfrom€281billionin2019)1.

Numerousfactors,includingthepost-Covid

recoveryintourismandtravel,increaseddemandincertainsectorssuchasbeauty,theemergenceofnewgeographicalmarketsandthegrowthofe-commercecombinedtoboostasectorinrudehealth,epitomizedbythedouble-digitgrowthofthesector’sgiants(+22%forLVMHsales

in2022)2.

However,sincetheendof2023,marketsignalshaveledobserverstotemperthisoutlook.

TheslowdownintheUSandweaknessinChina,areturntonormalconsumptionofluxurygoodsinEurope,andtheinstabilityoftheinternationalgeopoliticalsituationhaveledtoadownward

revisionofgrowthforecastsforthesector.Butbeyondthedebatesaboutitsgrowthprospects,thereisonethingonwhich

everyoneagrees:

Forseveralyearsnow,theluxurysectorhasbeenundergoingaprofoundtransformation.

Thereason?Changingcustomerhabits,

particularlythoseofGenerationZ,theimpactofnewtechnologies(ledbyAI)and,ofcourse,thegrowingimportanceofclimateand

environmentalissues,whichareforcing

companiestorethinktheirbusinessmodelsinordertolimittheirimpactontheplanet.

Threemajortrendstopthelistofbehavioral

changesamongtheprofessionalssurveyed

inourstudy:thedigitalizationofthebuying

process(71%),thecustomizationofproducts

andservices(55%)andtheconsiderationof

sustainabledevelopmentandethicalcriteriawhenbuyingluxuryproducts(52%).

Whatemergingbehaviorshaveyouobservedamongluxurycustomersoverthelast5years?*Onlineshoppingchannels,personalizedproductsandservices,sustainableandethicalbuying

Source:Potloc

*Choiceofcategories

Accessibleluxury

Digitalandonlinebuyingchannels ExperienceoverpossessionsSustainabilityandethicalpurchasing

UniqueandpersonalizedproductsorservicesVintageandsecond-handproducts

16%14%17%17%15%22%

40%14%17%12%8%10%

9%20%16%17%20%20%

13%21%18%17%18%14%

14%22%19%19%17%11%

10%11%14%20%23%24%

0%

<1%

0%

0%

0%

0%

0%25%50%75%100%

1234567

1

2

SOURCE:

STATISTA

LVMH,ANOTHERRECORDYEARFORTHEWORLD’SNUMBERONELUXURYGOODSCOMPANY,LESECHOS,28JANUARY2023

5

So,whileluxurycontinuestobesynonymouswithexceptionalexpertise,traditional

craftsmanshipandexclusiveexperience,

thesectorhasneverbeensokeentoinvestininnovation.

Whetherit’sdigitizingthecustomerexperience,integratingAI,developingalternativematerialsorexperimentingwithnewbusinessmodels,everystageoftheluxuryvaluechain-fromcreationtocommunication,fromproductiontodistribution-seemstobeaffected.

Howdoesthisfitinwiththetraditionalimage

ofluxury?Whatchallengesarebrandsfacingontheroadtotransformation?Howfarcantheygotokeepupwiththetimeswithoutlosingtheir

identityorbetrayingtheDNAofluxury?Andwhatdefinesluxurytoday?

Thesearethequestionsthathaveguidedthe

processofproducingthisstudyonluxury.

Todothis,weinterviewedexpertsand

professionalsinthesector,inFranceand

abroad,tofindouthowtheyseethesector

approachingandintegratinginnovationin2024.Thesediscussionsweresupplementedbya

quantitativesurveycarriedoutwiththePotlocInstituteinvolving200sectorrepresentatives

fromsmall,mediumandlargeluxurygoods

companiesinEurope,theUnitedStatesandAsia.Theywerequestionedontopicsasvariedas

regulatorydevelopments,consumertrends,sustainabledevelopment,humanresourcesissuesandtheimpactofnewtechnologies.

Theresultsofthisquestionnaireareintegratedandanalyzedthroughoutthestudy.

Thestudyisdividedintothreeparts,reflectingthethreemainareasofcurrenttransformationinluxurycompanies:

#1Clientexperienceinthedigitalage

#2Theclimateandenvironmentchallenge

#3Theevolutionofvaluechains

“Luxuryisaboutcreatingadreamthatlasts,”

saidJean-LouisDumas,thefamousCEOof

Hermèsfrom1978to2006,offeringadefinitionofthesectorthatarguablysurpassesallothersandsumsupwhatisatstakeinluxurytoday:

Inaworldincrisis,whereinnovation,

particularlytechnologicalinnovation,

isprogressingatanunprecedentedpace,howcanluxurycontinuetoinspire?

01

Luxury,digitalandnewtechnologies:

newdevelopmentsincustomerexperience

7

LUXURY,DIGITALANDNEWTECHNOLOGIES

2

3

Theinitialreluctanceofluxuryhouses

toembracee-commercenowseemsadistantmemory.Whereastenyearsagotheywereafraidofdamagingtheirimagebybeingonline,todaytheyareatthe

forefrontofadoptingnewtechnologiesanddigitizingtheiroperations.

Thisculturalshiftisredefiningthe

customerexperience,bothonlineandin-boutique.

ForStéphaneFournieroftheMazarineagency,“themaininnovationinluxurygoodsin

recentyearshasundoubtedlybeendigital

transformation,whichwillcontinuetoaccelerate.Masteringthedigitalstrategyhasbecomecentralbothintermsofvisibility,theactofbuyingand

behavioralanalysis”.

Thedigitalrevolutionstillposestwomajor

challengesforplayersintheluxurygoods

industry:howcanweimaginethecodesofluxuryinthedigitalworld?Howcanwemaximizevaluecreationbyexploitingthesynergiesbetween

onlineandoffline?

Furthermore,thegrowthandubiquityofnew

technologiesshouldnotblindustothefactthatthesepracticesareregulatedbyagrowing

numberoflawsrelatingtoprivacyanddata

confidentiality.Professionalsfromtheluxury

industryquestionedonthissubjectidentified

threemainimpactsofincreasedregulationon

personaldata:restrictionsonconsumerprofilingandsegmentationpractices(41%),theneedto

investindataprotection(41%)andrestrictionsonthesharingandtransferofcustomerinformationbetweendifferentplatformsandpartners(36%).

Howdoprivacyandconfidentialitylawsaffectyourcompany?

Restrictionsontheuseofadvancedcustomerprofilingandsegmentationpractices

Increasedinvestmentindatasecurity

Restrictionsonthesharingandtransferofcustomerdatabetweendifferentplatformsandpartners

Restrictionsontheuseofdetailedcustomerinformationfortargetedorpersonalizedadvertisingcampaigns

ChallengescustomertrustandreputationLegislationdoesnotaffectmybusinessOther(pleasespecify)

Source:Potloc

41%

41%36%

31%

29%

1%

0%

0%15%30%45%

8

LUXURY,DIGITALANDNEWTECHNOLOGIES

2

3

ANEWRELATIONSHIPBETWEENLUXURYBRANDSANDTHEIRCUSTOMERS:

REINVENTINGLUXURYCOMMUNICATIONS

Thewayinwhichaluxurybrandaddressesitsaudiencesisanintegralpartoftheexperienceitoffers.Oncediscreet,cultivatinganimageofrarityandinaccessibility,luxurybrandsnowembracesocialnetworksandotherdigitalcommunicationchannelswithdynamismandcreativity,whilerelyingonnewchannels(influencers,capsulecollections,collaborations,etc.).

Thisnewapproachislinkednotonlytochangingconsumerhabits,butalsotothefactthatthe

targetsofluxurycommunicationaremuch

broaderthanthecustomersofitsproductsand

services.Luxurybrandscommunicatenotonlytotheirconsumers,butalsotoallthosewhodreamofonedayenteringtheirexclusiveworld,toallthosewhoareinspiredbyluxury.

Newchannels...

Withyoungerconsumersandboomingdigital

technology,luxurycommunicationisnowtakingfulladvantageofdigitalopportunities.

Thiscommunicationadoptsthenewcodesthatarebeingusedbyestablishingamorehorizontalrelationshipwithitstargets,onethatismore

interactivebutalsomoreimmersive.

Atatimewhenluxuryismakingabigsplash

onTiktok,withthehashtag#Luxurycounting

morethan2billionviews3,CartierhasnotshiedawayfrominvestinginSnapchattocelebratethehistoryofitsiconicFrenchTankwithanimmersiveexperienceintheformofajourneythroughtimethatplungesusersintotheheartofitsbrand

universe.Attheendofthejourney,Snapchattersareabletovirtuallytryonthenewversionoftheiconicwatchviatheirmobilephones.

LikeCartier,thebrandsthathavesuccessfully

embraceddigitalcommunicationhavestayedtruetotheirDNAandcontinuetobuildontheirbrandheritage.Theyhaveidentifiedtheaudiencestheywanttoreachandhavebeenabletodecipher

theiruses,needsandassociatedexperiences.Asaresult,theyhaveadaptednotonly

theirofferingbutalsotheirmarketingand

communicationsstrategiestothesenew

audiences,investingintherelevantchannelswhosespecificcharacteristicstheyhavebeenabletounderstand.

Byseizingthesenewlevers(communities,

partnerships,hand-pickedinfluencers,etc.),

brandsareabletoexpandtheirgo-to-market,

extendandmaximizetheirreachandbrand

awarenessamongtheconsumersoftomorrow,whilemaintainingthemagicaroundtheir

brandstory.

3SOURCE:TIKTOK

9

LUXURY,DIGITALANDNEWTECHNOLOGIES

2

3

...andnewicons

Withtheexponentialgrowthofsocialplatforms,manyluxurybrandsarealsotappingintothefaneconomy,elevatinginfluencerstothestatusofspokesmodelsanddiversifyingtheirambassadorcommunities.

LénaSituationsatDior,AyaNakamuraat

Lanc?me...thepresenceofthesepersonalitiesfromsocialnetworksorfromavarietyofcreativeandculturalindustries(music,sport,etc.)

strengthensthebrand’sappealandhelpsittoreachayoungeraudience.

ThisphenomenonisparticularlypronouncedinAsia,asEsterinaNervino,aresearcheratCityUniversityofHongKong,pointsout:

“InAsia,influencermarketing,thefaneconomyandparticipatorycultureareexperiencingvery

significantgrowth,supportedbybrands’adoptionoflocalambassadorsfromthecreativeindustries,suchasK-popstars.”

Finally,thefuturemaywellliewithvirtualor

“meta-human”influencers,whoarebecoming

increasinglynumerousonsocialnetworksandarealreadybeingusedbyLouisVuitton,Balenciaga

andPrada.AvatarssuchasImmaGram,

LilMiquelaorShuduGramarecreatedusing3Dcomputer-generatedimagesandactlike“realinfluencers”,sharinginspiration,collaborations

andselfies.Theirgreatadvantage?Astheyare100%controlledbythebrands,thereisnoriskofscandallinkedtoasetbackinreputationoramisdemeanor.

InAsia,influencermarketing,thefaneconomyand

participatorycultureareexperiencingverysignificantgrowth,supportedbybrands’adoptionoflocalambassadorsfromthecreativeindustries,suchasK-popstars.

ESTERINANERVINO

Researcher

atCityUniversityofHongKong

AItakeson...Marketing

Amongitsmanyfieldsofapplicationintheluxuryindustry,AIischangingthefaceofluxurymarketingcampaigns:

whetheritaddsrealcreativevalueordemonstratestheabilityofbrandstointegratethelatesttechnologies,thereareanincreasingnumberofexamples.

Forits“Bornin1853.Madeforthefuture”campaign,madetomarkthe170thanniversaryoftheBeeBottle,Guerlain(LVMH)createditsownartificialintelligencemodel.

Basedonastudyofthehouse’sarchives,fromwhichaseriesofkeywordswasderivedand

optimizedintheformofprompts,1,800uniqueworksofartweregenerated,composingadigital

exhibitionaroundtheiconicbottlethroughtheages.

10

LUXURY,DIGITALANDNEWTECHNOLOGIES

2

3

NEWWAYSTOBUYLUXURY

Followingonfrome-commerce,whichoverthelastdecadehasopenedthedoortoout-of-storepurchases(longconsideredanunattainableobjectivebythesector),theactofbuyingluxurygoodsiscontinuingtoevolveasdigitaltechnologyandnewpossibilitiesopenup.

Inanswertothequestion:“adecadefromnow,whatwillbethemostfrequentlyusedmethod

ofpurchasingluxurygoods?”,overhalfofthe

professionalsfromtheluxuryindustryquestioned

inourstudy(51%)choseonlinepurchases

(platformsande-commerce).Insecondplace,second-handpurchasesonlyreceived14%ofthevote.

Adecadefromnow,whatwillbethemostfrequentlyusedmethodofpurchasingluxurygoods?

Buyingluxurygoodsononlineande-commerceplatforms

Buyingfromsecond-handplatformsorspecialistsecond-handshops

Buyingproductsviavirtualreality(VR)andaugmentedreality(AR)

Buyingluxuryproductsinatraditionalboutique

Buyingluxuryproductsatareducedprice

(sales,retailoutlets,etc.)

RentingaluxuryproductratherthanbuyingitOther(pleasespecify)

51%

14%

13%

11%

7%

6%

0%

0%20%40%60%

Source:Potloc

11

LUXURY,DIGITALANDNEWTECHNOLOGIES

2

3

Thisshiftintheactofbuyingtodigitalchannels,whetherbrandplatforms,second-handstores

orvirtualreality,posesanumberofchallenges

forbrands:howcantheymaintaincontroland

knowledgeoftheircustomers?Howshouldtheyrethinkthecustomerandshoppingexperience?Whatrolewillthestoreoftomorrowplay?

Whendigitalenhancescustomerexperience

Thedigitalizationofshopping,acceleratedbytheclosureofphysicalstoresfollowingtheCovid-19pandemic,isalsobeingdrivenbytheriseof

theAsianmarketandGenZ,bothofwhich

arekeenontechnologicalinnovation.“InChina,somecustomersshoponlinewithouteverhavingbeentoastore,”saysStéphaneFournierofthe

Mazarineagency.

Aftertheirstorefrontsites,brandshavedevelopede-commercesitesthataregraduallybecoming

virtualboutiquesusingdigitaltechnologyto

improvecustomerexperience,embodythebranduniverseandoffernewservices.Brands’onlinesalesplatformsarethusbecomingsomeoftheleadingoutletsforcertaingroups,asHermès

recentlyannounced,withtheplatformattracting75%ofnewcustomersin20204.

The‘1829’ClubcreatedbyChampagneBollingerisagoodexampleofhowdigitaltechnology

canenhancethecustomerexperienceand

relationship.Byinvitingsomeofitscustomers

tojointhiscommunityonlineorviaadedicatedmobileapplication,thechampagnehousegivesthemexclusiveaccesstorarevintages,

thechancetoattendprivateevents,chatlivewithamemberofthehouseorkeepuptodatewithprogressinthecellarsandvineyards.

Finally,beyondbrandwebsites,theactofbuyingisbeingreinventedthroughnewformatssuch

aslivestreaming(livevideopurchasing),

viamobileapplications,atexclusiveevents

organizedonlineand,ofcourse,onsocial

networks,suchasTikTokshop,afeatureoftheChinesesocialnetworkalreadyavailableintheUnitedStates,theUnitedKingdomandcertainAsiancountries.Byintegratingane-commerceplatformintoitsapplication,TikTokcombines

socialinteractionandonlineshopping,offeringanewservicetousersandanewspaceforbrandsandcreatorstointeractwiththeiraudienceinamoreengagingandvalue-drivenway.

Morebroadly,withtheriseofsocialcommerce,brandsarenowreachingouttotheiraudiences

onsocialnetworkstoofferthemaseamless

end-to-endexperience,fromdiscoveryto

purchase,withoutleavingtheworldofthesocialnetwork.Toalesserextent,thisisalsohappeningintheworldofgaming(AR/VR).

InChina,somecustomersshoponlinewithouteverhavingbeentoastore.

STéPHANEFOURNIER

AssociateDirector

Mazarineagency

4ACTIVITYREPORT,HERMèS

12

LUXURY,DIGITALANDNEWTECHNOLOGIES

2

3

AIand(hyper)customization

Injustafewyears,AIhasbecomeanessential

toolforluxurybrandstoenhancecustomization,bothoftheproductandoftheexperience.Itnowinfluencesthewayinwhichbrandsinteractwiththeircustomersateverypointofcontact.

AI,andinparticulargenerativeAI,iscitedas

amajorelementofcustomerengagementintheluxurysector.For41%oftheprofessionalsquestionedinourstudy,thisisthemost

importantimpactofgenerativeAI,aconvictionthatisevenstrongerinAsiancountries.

HowdoyouexpecttheriseofhighlyadvancedAItoinfluencetheluxuryindustry

industryintermsofthecreation,productionanddistributionprocesses?

Improvecustomerengagement

Fasterandmoreresponsivesupplychain

Improvecreativitybyprovidingdata-driveninformationforinnovativedesign

Optimizeefficiencyandprecisioninthemanufactureofluxurygoods

Optimizationofe-commerceCustomizeddesignandproduction

Other(pleasespecify)

AIwillnothaveanimpactontheluxuryindustry

Source:Potloc

41%

34%

32%

30%

30%

28%

<1%

1%

0%15%30%45%

13

LUXURY,DIGITALANDNEWTECHNOLOGIES

2

3

Thankstothedataanalyticsitenables,

AIprovidesmoredetailed,real-timeknowledgeofconsumerbehaviorandenablesthecreationofpersonalizedcustomerpaths,creatingauniqueandexclusiverelationshipwithcustomers.

Inparticular,AIoffersbrandstheopportunity

tocustomizelowerfunnelcampaigns

(personalizingcontent,msg,etc.)tothepointofhyper-customizationandindividualizationof

customerrelationshipmanagement(CRM).

AIalsomakesitpossibletoformulate

personalizedrecommendations(basedonthecustomer’sprofile,purchasinghistory,etc.)

aswellasstyleadviceandreal-timesupportviavirtualassistantspoweredbygenerativeartificialintelligence.

NumerousAI-basedchatbots,suchasthose

developedbyBurberryandLouisVuitton,

canrespondtocustomerqueries24hoursaday,inseverallanguages,andguidethemthrough

thebuyingprocess.

Thankstoalgorithms,brandscanalsoanticipatecustomer’sneedsbeforetheyexpressthem,

offeringproductsthatmatchnotonlytheircurrentpreferencesbutalsopredictedtrendsbasedon

globalbehavioralanalysis.

Finally,AIoffersimmersivecustomer

experiences(virtualfittings,customization

features,etc.),bothonlineandin-store,bringinganewdimensiontotheluxuryexperience.

YSLBeauté(L’Oréal),forexample,offersthe

“Rougesur-mesure”service,afeaturethat

combinesAIandtheInternetofThingstocreateupto4,000customizedshades.

Omnichannelobjective

Thankstodigitalizationandthedevelopmentofnewtechnologies,theemergingmodelisoneofhybridizationofthepurchaseactbetweenthevirtualandrealworlds,withthedevelopmentofomnichannelandweb-to-storeshopping.

Whiletheonlinetoolsandservicesofferedby

luxurybrandsstillneedtobeperfected,thegoalisclear:toprovideconsumerswithanoptimal,seamlessexperiencethatbringsoutthebestofbothworlds.Andthiswillonlybeachievedwhenthetechnologybecomesinvisible,disappearinginfavoroftheexperienceitenhances.

Afterall,asMauricedeKervénoa?l,ChairmanofLaurentPerrierchampagnes,asks“howcan

wegofromshoppinginadreamlikeenvironmenttoapurchasethatisdeemedtobevery

dehumanized?Therevolutionisindistribution.”

Howcanwegofromshopping

inadreamlikeenvironmenttoa

purchasethatisdeemedtobe

verydehumanized?Therevolutionisindistribution.

MAURICEDEKERVéNOA?L

ChairmanofLaurentPerrierchampagnes

14

LUXURY,DIGITALANDNEWTECHNOLOGIES

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3

AtLouisVuitton,forexample,“digitalenhancescustomerrelationshipsbothinsideandoutsidethestore,inparticularbyhelpingtoenhance

the‘waitingceremony’,thetimebetweenthe

customerbuyingaproductandreceivingit,”

explainsSophieCampion,ArtofTravelCollectionDirectorattheLVMHgroup.

However,thisglobaltrendshouldnotblindustospecificlocalcharacteristics.Whiletheluxurymarketisnowglobal,buyingpreferencescan

varyenormouslyfromoneregionoftheworldtoanotherandfromoneculturetoanother.Thisisafactorthatbrandscannotunderestimateatatimewhenmanyarelookingforthekeytopenetratingcertainemergingmarkets,suchasIndia.InApril2024,HermèsopeneditsthirdstoreinIndia,

WhatworksinFranceorthe

UnitedStatesintermsofsalestechniqueswillnotnecessarily

workinChinaorIndia.Forluxurybrands,understandingconsumerbehaviorinthesemarketsis

essential.

ASHOKSOM

Professor atl’ESSECBusinessSchool

andspecialistintheluxurymarket

withadecorthatskillfullyblendstheParisian

universeofthehousewithelementsthatreflectlocaltraditionsandknow-how.

“WhatworksinFranceortheUnitedStatesin

termsofsalestechniqueswillnotnecessarily

workinChinaorIndia,”pointsoutAshokSom,

professoratESSECBusinessSchoolanda

specialistintheluxurymarket.“Forluxurybrands,understandingconsumerbehaviorinthese

marketsisessential,”headds.

Theneedtodevelopluxuryprofessional’s

interculturalcommunicationskillswascitedasapriorityby56%ofrespondents,aheadofdigitalandtechnologicalskills.

15

LUXURY,DIGITALANDNEWTECHNOLOGIES

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3

Whatskillsshouldfutureemployeesintheluxuryindustryhavethatare

currentlyuncommonintheexistingworkforce?

56%

0%

0%

42%

41%

38%

44%

Skillsininterculturalcommunication

Problem-solvingskills

Dataanalysisanddigitalmarketingskills

Digitalandtechnologicalskills

(3D,GenAI,Metaverse)

ExpertiseinsustainabilityOther(pleasespecify)

Noneoftheaboveresponses

0%20%40%60%

LuxuryatthetopofKPMG’s‘customerexperienceexcellence’ranking5

“Threeluxurybrandsfeatureinthetop10ofthe5theditionofKPMG’s“CustomerExperience

Excellence”ranking,asurveythatidentifies

thebrandsthatofferbestpracticesincustomerexperience.Toachievethis,weassessed

sixpillars:integrity,resolution,personalization,expectations,timeandeffort,andempathy.

Chanel,rankedsecond,standsoutforitsexclusive,personalizedexperiences

(loyaltyprogram,virtualfitting,etc.)anditscommitmenttotheenvironment.

LouisVuitton,rankedthird,standsoutfor

itscontinuousprocessoptimizationand

thedevelopmentofseamless,high-quality

omnichannelexperiences.Finally,Hermès,sixthinourranking,owesitsverygoodresultstotheconsistencyandexcellenceoftheexperiencesitoffersthroughoutthecustomerjourney,

fromfirstcontacttoafter-sales,andtoitsabilitytofullyembraceitsuniqueidentity.”

FRAN?OIS-XAVIERLEROUX,

Partner,DigitalCustomer,KPMGFrance

5CEESTUDY,LESRENDEZ-VOUSDEL’EXPéRIENCECLIENT,KPMG,MARCH2024

16

LUXURY,DIGITALANDNEWTECHNOLOGIES

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3

LUXURYANDWEB3:AFALSESTART?

Luxury,onceheraldedasoneofthemostpromisingsectorsforWeb3,wasoneofthefirsttoexplorethesenewvirtualterritoriesbasedonblockchaintechnology.

InthenewageoftheInternet,Web3promised

newopportunitiesforluxurybrandstoengagewiththeircustomers,inparticularbybringingtwokeycharacteristicsofthesectorintothevirtual

world:rarityanduniqueownership,whileofferinganimmersiveand100%customizabledigital

experience(themetaverse).

Fortheprofessionalssurveyedinourstudy,themainreasonsforadoptingWeb3weretoimprovecustomerengagementandcustomization(28%)andtoimprovetraceability(23%).Itshouldbe

notedthatyoungerpeople(aged18-34)aremoresensitivetotheissueofdataprotectionthantheaveragerespondent(26%vs.16%).

Afewyearsaftertheinitialcraze,themanybrandsthathaveventuredintothisfieldarestilllooking

fortherightmodel,becauseafterbeingpresentedasthenewEldoradoofluxury,mostNFTsseemtohavefailedatthisstage.

WhatisthebiggestincentiveforluxurybrandstoembraceWeb3.0?

Source:Potloc

28%

0%

0%

21%16%

14%

23%

Improvingcustomerengagementandenhancingcustomizedexperiences

Ensuringauthenticityandtraceability

Establishingmoretransparentandtrust-basedrelationshipswithcustomers

Protectingintellectualpropertyandsensitiveinformation

Leveragingtechnologicaladvancesanddigitalpotential

Other(pleasespecify)Noneoftheaboveresponses

0%10%20%30%

28%

oftheprofessionalssurveyedidentifiedimprovedcustomerengagementandcustomizationas

reasonsforadoptingWeb3.

17

LUXURY,DIGITALANDNEWTECHNOLOGIES

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3

CaughtupinthefadforNFTs,manyplayersin

theluxurysectorhaverushedintothespace

withoutalong-termstrategicvisionorin-depth