How is the luxury sector increasing its investment in new technologies?

For the fourth consecutive year, international consulting firm Bain & Company and Comité Colbert, the representative association for French luxury goods, have released their annual report on the theme of Luxury and Technology. After successively exploring the adoption of new technologies, the store of the future, and then analytical and generative artificial intelligence, this year’s report focuses on the technological investments of luxury players, which are countering the economic slowdown observed in the sector.

The 2025 Luxury & Technology report produced by the Comité Colbert and Bain & Company highlights the average amount spent on technological development by European luxury groups: 3.1% of their annual revenue. However, this amount can vary.

Overall, investment levels range from 1.9% to 5.5% of revenue. However, Bain & Company notes that the range is the same regardless of the size of the company.

The amounts mentioned are in fact closely linked to the company’s history, its operating model, but also its product mix and existing tech architecture.

However, 60% of players say they want to increase the absolute value of their technology investments by at least 5% within the next two to three years.

As every year, the study includes a quantitative component coupled with a qualitative component carried out with a representative panel of French luxury companies, including member houses of the Comité Colbert. The qualitative approach is based on one-to-one interviews with luxury executives (CEOs, CTOs or CIOs, CFOs, and digital transformation directors).

By joining forces once again, Bain & Company and the French association of luxury players sought to understand the share of technology spending, how it is allocated, and the avenues to pursue in order to accelerate and optimize digital transformation.

Better countering the “growth slump”

In its annual benchmark review conducted with Altagamma, the Italian equivalent of the Comité Colbert, Bain & Company noted a growth slump in 2024 for luxury players, representing a decline of -1%.

But while Joëlle de Montgolfier, Executive Vice President – Global Retail and Luxury Practices at Bain & Company, confirms a certain sluggishness in the sector, she qualifies her statement: “We are certainly on a downward curve, but not facing a widespread collapse of the luxury sector.” She adds, “We are forecasting a decline of 2% to 5% in 2025,” which is “well above 2019, the last reference year for the sector” before COVID.

Indeed, despite the high volatility and turbulence seen recently, the “bright future of technology-driven luxury” is still on the agenda. The global luxury market, estimated at €1.5 trillion in 2024, can indeed expect growth of 4 to 6% per year over the period 2024-2030.