Video

This conversation, recorded at PI Apparel New York, centers on how LVMH, a global leader in luxury goods, approaches digital innovation to maintain its heritage while appealing to a digitally native clientele.

Key Takeaways:

• Balancing Innovation and Heritage: LVMH recognizes the need to embrace digital transformation while staying true to its legacy of craftsmanship and exclusivity. They aim to create a “digital craftsmanship” that translates the emotional experience of luxury boutiques online.
• Disciplined Experimentation: LVMH avoids jumping on every trend. Instead, they take a measured approach, testing hypotheses with a limited scope before scaling successful initiatives.
• Prioritizing 3D and AR: Recognizing its maturity and relevance to luxury retail, LVMH is heavily invested in 3D and AR technologies. They’ve even established an in-house 3D factory to streamline production and maintain quality control.
• Success Metrics: Measured by time to market, cost reduction, engagement rates, conversion rates, and return reduction.
• AI as Enhancement, Not Replacement: While exploring AI and GenAI for personalization and creative applications, LVMH emphasizes that human creativity remains central.
• Challenges: Concerns about output quality, IP protection, and privacy are being addressed before wider deployment.
• Blockchain for Transparency and Authenticity: LVMH leverages blockchain technology, specifically the Aura Blockchain Consortium, for product passports. This enhances transparency and combats counterfeiting by tracking provenance and materials.
• Embracing the Gaming World: Recognizing the importance of the metaverse as a “third place,” LVMH actively engages in gaming through product integration, endorsements, and virtual experiences.
• IRL Experiences Remain Crucial: While embracing digital, LVMH emphasizes the importance of physical, tactile experiences. They see digital innovation as enhancing, not replacing, in-person interactions.

Noteworthy Quotes:

• “When it comes to digital, that’s where the tension comes in because when your heritage is built on tactile savoir-faire, heritage, craftsmanship, it’s really challenging to translate that into the digital realm.”
• “A lot of execs in the fashion space know that they don’t want to be left behind… but at the same time they’re doing it in a very disciplined very intentional way with a very specific hypothesis of what they want to test, limited scope, and then scaling anything that works well.”
• “We’re starting to see a lot of brands really diving into 3D on e-commerce… and so for us it’s been proven by others and now it’s just a matter of going through the digital transformation to truly have end-to-end 3D. I think that is the beautiful end goal.”
• “For us to come out with a philosophy that it’s always human at the center, nothing will replace human creativity, and AI and gen AI is just there to enhance what we’re doing, help us do it faster and cheaper, and that was kind of like the very first thing that the entire group came out with.”
• “I think a big part of what our brands are trying to do is actually create IRL experiences where you actually slow down… I think digital innovation is just there to enhance it, not to replace it.”