- Technology has become a key function in luxury's transformation: 85% of CEOs consider it important to executing their strategy, and 8% deem it truly critical
- 37% of luxury houses report having already largely put in place the technological capabilities needed to deliver on their strategies, while 63% report having them partially
- For the first time, the report reveals that luxury houses dedicate an average of 3.1% of their revenues to technology. Looking ahead, 60% plan an increase of at least 5% in technology budgets over the next two to three years
PARIS, Sept. 16, 2025 -- Technology is now an indispensable strategic lever for Europe's leading luxury companies, key findings from the 4th edition of the Luxury and Technology report from Bain & Company and Comité Colbert, conclude today.
Among luxury companies, 85% of CEOs now view technology as important in executing their strategy, with 8% even reporting it is critical, survey results from the annual Bain/ Comité Colbert study reveal. The harnessing of technological capabilities by the luxury sector is progressing, today's analysis reports: 37% of houses thus report they largely have the technological capabilities to execute their strategy; 63% say their capabilities are partially in place. Not a single house reported lacking technological capability.
Significant technology spending set to rise further
Bain & Company and Comité Colbert's analysis – measuring luxury's technology spending for the first time – shows that luxury houses devote on average 3.1% of their revenues to technology. For some, this can exceed several hundred million euros. This average masks substantial variance: spending ranges from 1.9% to 5.5% of revenue. The trend points clearly upwards, with 60% of houses and groups expecting to increase technology budgets by more than 5% in the next two to three years, with 28% even anticipating a rise of more than 10%. Key drivers include investment needs in artificial intelligence, cybersecurity, and systems modernization.
Three levers to enhance technology investment effectiveness
The analysis from Bain & Company and Comité Colbert highlights three priorities to maximize the impact of technology spending:
- Strategic alignment: Ensuring that technology investments are fully aligned with each house's business priorities.
- Rationalization and modernization: Modernizing infrastructure, simplifying technology architecture, eliminating redundancies, and making greater use of shared platforms to generate synergies.
- Building internal capabilities: Developing in-house expertise for more agility. Currently, 68% of innovation spending relies on external providers, a share higher than in other sectors. Deploying innovative tools such as AI coding assistants can also help to lift engineering productivity.
Strengthening collaboration between executive leadership and technology teams
As the sector matures, closer involvement of CEOs in technology-driven transformation is critical to elevating technology to a strategic function. In companies where CEO engagement in technology remains limited (50% of cases), most CIOs seek clearer roadmaps. To foster effective collaboration between business and technology, executive training on technology topics is essential to develop literacy – yet tech training for leadership is currently in place at only 52% of houses and groups.
Bénédicte Épinay, CEO of Comité Colbert, commented: "CIOs are no longer just executors: they now play a central role in luxury houses' transformations. Not only must CEOs and CIOs work hand in hand, but the entire organization must become increasingly attuned to the value and impact of technology. Attracting top technology talent to the luxury sector will depend on this cultural shift."
Joëlle de Montgolfier, executive vice president in the Retail & Luxury practice at Bain & Company, and co-author of the study, added: "In today's challenging economic environment, luxury houses face the imperative to optimize every resource. Technology budgets are already significant – but the key is not merely to cut costs or increase spending to match sector benchmarks. Rather, investments must be right-sized and precisely aligned to each company's strategic objectives, supporting both day-to-day operations and future innovations."
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