LVMH Leverages AI to Future-Proof Luxury Beauty and Fashion Operations

THE WHAT? LVMH is ramping up its investment in artificial intelligence to boost efficiency and consumer engagement across its 75 luxury brands, including cosmetics and fragrance powerhouses like Dior and Givenchy, amid a broader market slowdown.

THE DETAILS  Through a long-term partnership with Google Cloud, LVMH has built a central data platform integrating information from across its maisons, now powering predictive and generative AI applications. The group is deploying AI agents across functions—from price optimization to personalized customer outreach—particularly in high-touch categories like fragrance and cosmetics, where brand loyalty and clienteling are critical. For instance, Tiffany sales associates now use AI tools to tailor client communication based on historical interactions. LVMH is also tapping AI for product development, e-commerce search refinement, and marketing personalization. Internally, AI is optimizing supply chain planning, adjusting prices in response to currency shifts, and even aiding creative teams with generative mood boards and content generation.

THE WHY?  As luxury demand cools in key markets like the U.S. and China, LVMH is turning to technology to offset economic headwinds and shifting consumer behavior. With price sensitivity rising and repeat purchases in beauty and fashion under pressure, AI enables greater agility, improved personalization, and cost control—all while preserving the exclusivity central to luxury. By embedding intelligence into back-end and consumer-facing operations, LVMH aims to reinforce customer loyalty and protect margins in a more competitive, post-boom landscape.

Source: The Wall Street Journal

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