Luxury must be felt, but also clicked on: How tech is ushering in a new era

One of the standout findings in our recent Luxury in the Midst of Change report is that the luxury sector is becoming far more intelligent. Behind the scenes, advanced digital tools – from artificial intelligence (AI)-driven inventory to smart supply chains – are helping brands to cut costs, increase efficiency and build resilience in a rapidly shifting landscape.

The real transformation, however, goes beyond operational change. It is also happening in how brands engage with and understand their customers which – in an increasingly tech-heavy and competitive environment – is helping to boost sales. This shift is being shaped by the need to cater to two different audiences: the top two percent of ultra-wealthy clients who generate nearly 40 percent of revenue and are largely insensitive to price, and the remaining 98 percent of aspirational middle-class consumers who seek status while remaining cost-conscious.

Reaching both groups is crucial, yet doing so without diluting a sense of exclusivity is the balancing act that is defining the next chapter of luxury. This is increasingly where advanced technologies come into play, reshaping how luxury brands design and execute their marketing strategies with approaches that boost both engagement and online sales.

Tomorrow’s luxury, as outlined in our report, blends cutting-edge technology with timeless craftsmanship, with this convergence especially evident across Southeast Asia. 

By using AI to integrate online and offline sales, customer relationship management (CRM) and marketing under one intelligent system, brands can craft hyper-personalised campaigns that resonate deeply with individuals, rather than relying on broad, one-size-fits-all messaging.

This shift is reshaping the connections that brands have with their audiences. Artificial Intelligence allows them to tailor messages, experiences and digital touchpoints to different consumer segments, delivering curated journeys that feel human and personal rather than automated.

That can have a big impact, as our report found for a global luxury brand that created customised content for the launch of a new fragrance. By tailoring the content to each customer’s digital profile – including via immersive videos, personalised storytelling and product recommendations – its social media engagement rates climbed 45 percent, with online sales up 30 percent.

This approach to boosting “clickability” has proven effective; our research shows that digital personalisation boosts engagement and sales. Additionally, brands know it works: more than half cite personalised digital engagement as their core loyalty strategy, with 22 percent saying AI-driven personalisation and recommendations “have significantly boosted sales and customer engagement”. 

This is proving particularly relevant in Southeast Asia. While many Western markets still lean on generic brand-building, this region is increasingly seeing a shift toward more bespoke, intimate and emotionally resonant communication across both high-net worth clients and the wider base of aspirational consumers.

As brands here focus more on a technology-empowered approach to marketing, they have been helped by the region’s tech-focused lifestyle. Three overlapping trends give brands here an edge that they lack in Western markets.

First, this is a mobile-first, largely cashless region where consumers live inside digital ecosystems, as opposed to Western markets where online adoption has been slower and more fragmented. This digital fluency gives brands powerful access into what their customers want so they can engage with them in ways that resonate.

Second, consumers in Southeast Asia are far more comfortable engaging online and highly receptive to emotionally driven, story-led content. They actively seek personalised digital experiences and want brands to speak directly to their identity and aspirations.

Third, digital engagement is not a novelty here – it is the norm. Consumers expect a smooth, seamless interaction between online and in-store experiences – being able to look at an item online before heading to a retail outlet to view it – and to be actively immersed in the storytelling journey. While they want the convenience that digital solutions bring to their engagement with a brand, they also expect it to deliver emotional connection and meaning.

The rise of elevated consumer experiences enabled by digital marketing raises the bar for brands. That is why leaders are turning to AI not simply as a tool for efficiency, but as a strategic engine for relevance, creativity and loyalty. The brands positioning themselves most successfully are crafting emotionally resonant experiences tailored to specific audiences, delivered directly via mobile. This need to be more clickable going forward is crucial in a region where 60 percent of people shop online and around the same proportion of payments is digital.

AI-enabled marketing is not the region’s only frontier. A new trend is seeing luxury brands form partnerships across entertainment, music, design and storytelling to strengthen cultural resonance. Beyond selling products, these collaborations centre on co-created experiences that reflect lifestyles and identities, building authenticity across diverse Southeast Asian markets.

Looking ahead, such partnerships are likely to become more common, involving streaming platforms, musicians, chefs and artists – innovations that make luxury feel lived, not merely displayed. In this new era of luxury, brand desirability is built not only through heritage, but also through relevance. Southeast Asia illustrates how brands that blend technology and emotion, and that partner in ways that reflect the variety of cultures in this region’s markets, will foster strong customer loyalty and maintain a competitive edge.