As the luxury industry searches for new growth engines amid a slower global market, one theme is becoming increasingly clear: innovation is no longer a support function. It is becoming a core competitive advantage.

That reality is reflected in the growing importance of the annual LVMH Innovation Award and the broader innovation ecosystem surrounding the world’s largest luxury group. As the 2026 edition approaches its showcase at Viva Technology in Paris later this month, industry attention is focused on the startups, technologies, and partnerships that could define luxury’s next chapter. (LVMH)

For years, luxury companies built their reputations primarily on craftsmanship, heritage, exclusivity, and creative vision. Those pillars remain fundamental. But increasingly, executives are asking a different question:

How can technology enhance luxury without diminishing its magic?

The answer is shaping investment decisions across fashion, beauty, watches, jewelry, hospitality, and retail.

From Craftsmanship to Digital Excellence

LVMH launched its Innovation Award to identify startups capable of transforming the luxury experience while preserving the qualities that make luxury distinctive. Each year, approximately 30 startup finalists are invited to present their solutions during the VivaTech conference in Paris, one of Europe’s largest technology gatherings. Finalists gain exposure to decision-makers from across the group’s portfolio of maisons and business divisions.

The award serves a broader purpose than recognition alone.

Selected startups can gain access to partnerships, mentorship opportunities, and eventually participation in LVMH’s startup incubator ecosystem. Some go on to become long-term collaborators with brands across the group. (LVMH)

This model has become increasingly influential because it allows a heritage-driven luxury company to benefit from entrepreneurial speed without sacrificing brand identity.

Luxury businesses often move carefully. Startups move quickly.

The Innovation Award is designed to bridge those worlds.

Why Innovation Matters More in 2026

The luxury market has entered a more demanding period.

After years of exceptional growth, many brands are navigating softer consumer spending, geopolitical uncertainty, and changing shopper expectations. Industry leaders have emphasized creativity, resilience, craftsmanship, and reinvention as key priorities for 2026. (Vogue)

Technology is becoming part of that reinvention.

Today’s luxury customers expect:

• Personalized experiences
• Seamless omnichannel shopping
• High-quality digital storytelling
• Authentic sustainability data
• Faster service
• Enhanced clienteling

Meeting those expectations increasingly requires advanced technology operating behind the scenes.

Artificial intelligence, predictive analytics, immersive content creation, and digital supply-chain management are no longer experimental concepts. They are rapidly becoming operational necessities.

The Rise of AI in Luxury

Artificial intelligence remains one of the most discussed themes within luxury innovation circles.

Unlike mass-market retail, luxury brands face unique challenges when implementing AI.

Luxury consumers often value human interaction, personal relationships, and emotional storytelling. Any technological enhancement must support—not replace—those experiences.

As a result, luxury companies are pursuing a more nuanced strategy.

Rather than eliminating human involvement, AI is increasingly used to help sales associates understand customer preferences, anticipate demand, optimize inventory, and personalize communications.

The objective is not automation for its own sake.

The objective is elevated service.

This distinction may explain why luxury has been slower than some industries to adopt AI aggressively. But it may also explain why luxury applications of AI are becoming increasingly sophisticated.

Lessons from Previous Winners

The direction of luxury innovation can often be understood by examining recent winners.

At the 2025 LVMH Innovation Award, French startup Omi received the “Most Promising” distinction for its content-creation technology. Omi specializes in creating high-quality 3D visuals, allowing brands to generate imagery more efficiently while maintaining luxury-level visual standards.

In announcing the recognition, Omi co-founder and CEO Hugo Borensztein emphasized the combination of heritage and advanced technology.

“Working with a maison founded two centuries ago using the most advanced 3D and artificial intelligence technologies…” (Vogue)

That statement captures a broader tension within luxury innovation.

Luxury companies must embrace new capabilities while preserving historical identities built over decades—or even centuries.

The startups that succeed in this environment are often those capable of enhancing heritage rather than disrupting it.

Personalization Becomes the New Luxury

Historically, luxury was defined by scarcity.

Today, many executives increasingly believe personalization represents a new form of exclusivity.

Consumers want products, recommendations, services, and experiences that feel individually relevant.

Technology enables that at scale.

Advanced customer-data platforms can help brands understand purchasing behavior more effectively. AI-powered systems can assist with product recommendations. Predictive tools can anticipate customer interests before requests are made.

The result is a more individualized luxury journey.

In many ways, the future of luxury may involve combining traditional personal service with technology-driven intelligence.

Sustainability Through Technology

Innovation in luxury increasingly extends beyond customer experience.

Sustainability has become a major area of investment.

Technology is being used to improve:

• Supply-chain transparency
• Material traceability
• Environmental reporting
• Waste reduction
• Resource management

Many luxury companies recognize that future consumers will expect more visibility into how products are sourced and manufactured.

Technology provides tools for delivering that transparency.

The challenge lies in integrating sustainability systems without compromising design excellence or craftsmanship.

Luxury groups increasingly see those goals as complementary rather than contradictory.

Startup Culture Meets Luxury Culture

One reason the LVMH Innovation Award attracts attention is that it brings together two very different organizational cultures.

Luxury houses often prioritize:

• Long-term thinking
• Brand stewardship
• Consistency
• Heritage

Startups often prioritize:

• Agility
• Experimentation
• Speed
• Rapid iteration

Historically, those cultures did not always align naturally.

Today, however, many executives view collaboration between the two as essential.

Startups provide fresh perspectives and technical expertise.

Luxury brands provide scale, resources, and access to global markets.

The Innovation Award serves as a meeting point between those complementary strengths.

VivaTech and Luxury’s Digital Future

The upcoming Viva Technology conference remains one of the industry’s most closely watched innovation events.

The gathering brings together entrepreneurs, investors, technology leaders, and major corporations from around the world. LVMH’s participation underscores the growing importance of technology within luxury strategy.

For participating startups, visibility at VivaTech can be transformational.

Exposure to executives from fashion, beauty, hospitality, jewelry, and retail creates opportunities that would otherwise take years to develop.

For luxury groups, the event functions as a live laboratory of emerging ideas.

Beyond Fashion

Although fashion receives most public attention, innovation opportunities increasingly extend across every luxury category.

Beauty brands are investing in personalization technologies.

Jewelry companies are exploring traceability systems.

Hospitality businesses are enhancing guest experiences through digital services.

Wine and spirits divisions are using data analytics to better understand consumer behavior.

The luxury ecosystem is becoming increasingly interconnected.

As a result, innovation developed in one sector often finds applications elsewhere.

What Industry Leaders Are Looking For

Luxury executives repeatedly emphasize several qualities when evaluating new technologies:

Scalability — Can the solution work across multiple brands?

Measurable impact — Does it deliver tangible business results?

Brand compatibility — Does it preserve luxury positioning?

Long-term value — Can it support future growth?

These criteria help explain why not every technology trend succeeds in luxury.

The industry tends to favor solutions that create meaningful improvements rather than temporary hype.

The Human Factor Remains Essential

Despite rapid technological progress, luxury leaders consistently return to a common theme: people remain central.

Craftsmanship continues to define value.

Creative directors continue to shape brand identity.

Sales advisors continue to build customer relationships.

Technology’s role is increasingly viewed as enabling those human strengths rather than replacing them.

That perspective may ultimately distinguish luxury from many other sectors undergoing digital transformation.

Looking Ahead

As the 2026 Innovation Award cycle moves toward its next stage, the startups participating are competing for more than a trophy.

They are competing for the opportunity to influence how luxury evolves during the coming decade.

The most successful innovations are unlikely to be the loudest or most disruptive.

Instead, they may be the technologies that quietly improve craftsmanship, strengthen sustainability, deepen customer relationships, and enhance creativity.

In that sense, the future of luxury may not be defined by choosing between heritage and technology.

It may be defined by successfully combining both.

And that is precisely why the LVMH Innovation Award has become one of the most closely watched indicators of where the luxury industry is headed next.