Why the Future of Luxury is Tech-First

Hi, it’s Marc. ✌️

"The biggest AI impact isn't in chatbots—it’s in backend efficiencies like demand forecasting, inventory management, and pricing optimization."

We sat down with Mario Lang, Executive Director & Global Technology Lead at The Estée Lauder Companies Inc., to discuss the key shifts in technology to define the next decade of luxury.

The Estée Lauder Companies (ELC) have explored emerging technologies, such as blockchain-based Digital Product Passports (DPPs) for authentication, consumer engagement, and resale tracking. They are also developing AI-driven customer service agents to enhance white-glove luxury experiences.

Mario said:

“Many brands fail in digital transformation because they silo innovation teams from core business units—tech must be embedded, not an afterthought.”

In 2024, ELC and Microsoft expanded their partnership with an AI Innovation Lab to power prestige beauty with generative AI by accelerating consumer engagement, speed to market, and localized relevance across ELC’s 20+ brands. The company also built an AI tool to merge trend data with products to spot trends, optimize marketing, and boost profitability while improving consumer targeting and reducing marketing inefficiencies.

AI, blockchain, and immersive commerce are no longer experiments—they are shaping how brands engage, optimize, and sustain long-term value.

Here’s what we’ve covered:

• Digital Product Passports (DPPs) – The future of CRM

• AI in Luxury – Backend first, frontend next

• NFTs – From collectibles to utility

• AI-powered trend spotting & pricing optimization

• Web3 loyalty programs

• The shift to interoperable luxury

And much more.

The future of luxury isn’t brand silos—cross-brand collaboration will redefine consumer engagement. Brands need to stop hoarding consumer data and embrace shared loyalty ecosystems.

Key Take-Aways for Brand Leaders

1. DPPs will be the CRM: DPPs lower the barrier to consumer-brand interaction, replacing the outdated PII (Personal Identifiable Information) model. They authenticate luxury products, support resale, and build long-term consumer relationships.

   1. Action: Start integrating DPPs in your supply chain today across sourcing, retail, and resale. The EU will require them soon for sustainability compliance.

   2. No ID management platform currently exists that fully bridges procurement, retail, and consumer engagement—this is an untapped opportunity.

2. AI should first optimize operations, then elevate consumer experience: AI agents can enable hyper-personalized luxury service at scale, reducing human resource needs. The biggest opportunity isn’t in chatbots—it’s in backend efficiencies: demand forecasting, dynamic pricing, and supply chain optimization.

   1. Action: Deploy AI to optimize inventory, promo pricing, and customer segmentation before launching consumer-facing AI experiences.

3. NFTs are not dead—they need utility: The NFT hype cycle is over, but functional NFTs tied to loyalty, gated access, or resale verification will thrive. Sports teams and entertainment brands are leading the way in NFT utility—luxury is behind.

   1. Pro tip: Instead of a collectible, think of NFTs as a membership key—reward consumers with exclusive product drops, events, or brand collaborations.

4. Metaverse is evolving through AR & Wearables: Full-scale VR adoption is waiting on better hardware, but AR is already driving results in retail activations. Consumers expect seamless blending of digital and physical luxury experiences.

   1. Action: Test AR activations in high-footfall retail spaces and track conversion from AR-driven engagement to purchase.

5. The future of luxury loyalty is interoperable: Consumers want brand-agnostic loyalty programs where benefits travel across brand ecosystems. The biggest brands are already tracking consumer behavior beyond direct sales—department store data is the next battleground.

   1. Action: Consider partnering with other brands or platforms for shared loyalty programs. A perfect example: Cavs Rewards

   2. The biggest opportunity isn’t just better loyalty—it’s disrupting wholesale retail data access, allowing luxury brands to reclaim customer insights lost in department stores.

6. Future-proofing- How to vet emerging technologies: Leaders need to assess tech through clear business outcomes, not just “innovation for innovation’s sake.” Brands that fail to connect technology to engagement, conversion, or efficiency will struggle with adoption.

   1. Action: Categorize all new tech into:

      1. Now – Solves an immediate business need (e.g., AI for pricing optimization)

      2. Soon – Competitive advantage in 1-3 years (e.g., DPPs, loyalty evolution)

      3. On the Horizon – Moonshot innovation bets (e.g., AR-based virtual commerce)

   2. Pro tip: Never lead with “innovation” when pitching tech internally—frame solutions in terms of revenue, efficiency, and conversion.

The next decade of luxury isn’t about digital gimmicks—it’s about using technology to lower friction while preserving exclusivity.

Brands that integrate AI, blockchain, and immersive experiences into existing consumer journeys—instead of treating them as standalone experiments—will win.

Dive deeper and listen to the full conversation.

That’s all for now.

Thanks,

Marc & Team

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