The digital transformation that is currently disrupting the market has also played a great role in redefining the shopping experience of high-end consumers in the luxury industry. Industry 4.0 is anchored on principles of speed, efficiency, and high volumes.

Latest retail technologies such as big data, 3D, smart factories, artificial intelligence (AI), internet of things (IoT), machine learning, advanced algorithms, augmented reality, and voice e-commerce are reshaping how companies manufacture products and how the customers do their shopping.

The luxury industry has also benefited immensely from smart technologies. Most high-end luxury brands and retail stores are integrating cutting-edge technologies into their highly crafted and customized products to improve customers’ experience. Industry 4.0 has enabled many luxury companies to digitize and automate their businesses thus improving productivity and personalized customers’ experience.

To clearly understand how industry 4.0 has transformed the luxury industry, we are going to explore various retail and high-end luxury categories that have benefited from this digital transformation.

Industry 4.0 in fashion luxury industry

The fourth industrial revolution has also played a significant role in the transformation of the fashion luxury industry. Whether it’s in 3D printing and visualization, analytics, material science, augmented reality, or artificial intelligence, the fashion industry has benefited a lot from this advanced technology.

Luxury fashion brands are able to collect client data such as their shopping preference and design to enable them to create flexible manufacturing of customized fashion luxury products that will resonate with customers both the older generation and millennials. The fashion industry is stretching industry 4.0 possibilities and moving forward there is a high possibility of creating fabrics that will have microscopic computing embedded to those fabrics so that they can have the potential of detecting surrounding temperature changes and adjusting accordingly.

The sportswear sector is also very active when it comes to adopting industry 4.0 technologies and it’s employing the new concepts in its craftsmanship to design and create high-end and customized sportswear luxury items. Predictive analytics from data collected from past clients is also helping brands to forecast future luxury trends so that they can start preparing for future transition and adaptability.

If manufacturers of luxury fashion brands are certain that certain consumer trends will continue into the future, the predictive technology can help them align their production lines and marketing channels so that their operations remain competitive and efficient.

Industry 4.0 in the luxury watch industry

Luxury watches are also feeling the impact of smart technologies as consumers’ tastes and preferences continue to evolve. As a result, the luxury watch industry has no choice but to adopt industry 4.0 technologies. Smartwatches are now on the rise and designers are now looking for better ways of integrating the traditional shaped watches with the latest sophisticated technological features. A good example of a luxury watch brand is TAG Heuer that is now using IoT technology and Android smartphone technology.

Other luxury watches brands are also embracing industry 4.0 digital technologies and we are seeing more luxury brands adopting track and trace, inspection, anti-counterfeit sensors, and smart data management systems.

Artificial intelligence is also helping many luxury watch brands to guarantee quality control checks for all components used in the designing and manufacturing of luxury watches. Current artificial intelligence uses advanced algorithms to analyze products when scanned by a camera and identify any mistakes that can help manufacturers know if a component is of good quality or not.

The luxury industry is a very sophisticated industry that requires unmatched attention to detail for brands to remain competitive. High-end luxury watches customers are moved by unique items that are customized using advanced technologies.


Industry 4.0 in the luxury car industry

The world of the luxury car industry has embraced industry 4.0 digital transformation in the production of high-end cars. Car production factories are being redesigned to integrate industry 4.0 technologies while at the same time keeping a considerable amount of workers. In the Lamborghini factory, for instance, the manufacturer adopted the industry 4.0 technologies it was able to increase production capacity by 50%. Workers do all the assembly works while robots and automated guided vehicles transport car materials and chassis.

Cobots are used in production areas that require either positional precision or maximum repeatability. The use of industry 4.0 technologies has helped Lamborghini increase SUV Urus cars production efficiency and it’s even considering extending the craftsmanship efficiency experienced to the production of its renowned supersport cars that will require high-quality standards and customization.

The company also uses a manufacturing execution system (MES) to synchronize and relay data in real-time via rugged industrial tablet touchscreens.


All these digital transformations are redefining the shopping experience of luxury consumers as more and more brands continue to put their emphasis on personalized and smart experiences.

Augmented reality has played a significant role in enhancing digital integration with consumer’s preferences to boost affluent customer’s shopping experience. Luxury brands are now adopting the smart mirror technology in their physical retail stores to give their clients a special chance to freely interact with a wide range of luxury products digitally and get real-time information such as price, origin, availability, similar products, and models.

Due to the high number of smartphone penetration globally, more and more high-end customers are using luxury items that incorporate the use of artificial intelligence assistants. The demand for smart devices such as Amazon Echo, Apple HomePod, and Google Home is on the rise for most high-end consumers. Moving forward, we are going to witness luxury brands adopting AI-powered innovations in order to increase consumers’ experience.

Another industry 4.0 digital transformation technology that will revolutionize the world of luxury retailing is voice commerce. Voice-controlled e-commerce will enable luxury consumers to make impulsive buying decisions in a completely new environment. The voice search will play a significant role as a good alternative to text typing when shopping for various luxury items and services. Industry 4.0 will transform the luxury industry in a big way and high-end consumers will benefit immensely once luxury brands completely embrace smart technologies that ease the human-computer interactions plus the finest customization of luxury items to redefine customers’ experience without compromising on quality.