Luxury Brand Management in the World of Evolving Technologies
Gina Cook, Květa Olšanová · The journal of business leadership · 2024
The dynamics of the luxury sector are unique and quite different from those existing in the fastmoving consumer goods (FMCG) arena. Consequently, the marketing strategies used in the brand management of luxury companies are also distinctive, and brand managers rely on traditional marketing practices only to a limited degree. Luxury has also been slower to embrace online methods due to a perceived potential threat to preserving the values associated with luxury brands. However, as new technologies emerge, organizations – luxury companies included – find themselves facing both new opportunities and challenges. These developments are further magnified by changing demographics, in particular the growing presence of generations Z and Alpha, who have grown up online and will soon become more significant customers with greater buying power. This discussion paper examines the evolving technologies, focusing on the challenges and opportunities presented to luxury companies. Several examples are used to map this scene. Blockchain, NFTs, the metaverse, artificial intelligence, and machine learning are considered. The paper concludes with a brief look at opportunities for future research.