Luxury brands have been increasingly recognizing the innovations of startups in the luxury market and are interested in investing in them as potential partners or acquisition targets. For example, LVMH, one of the world’s leading luxury brands, recently sponsored a competition where more than 500 startups competed for a prize of $50 million. The winning startup, Heuritech, developed a virtual assistant powered by artificial intelligence that can identify the latest fashion trends.
This technology-enabled revolution has also influenced the way people live. With the increasing popularity of smartphones, many people are now looking for home appliances that can seamlessly integrate technology with luxury. For instance, chromotherapy showers and smart ovens can help cook meals based on calculations and personal health records. With the rising demand for luxury products, Silicon Valley has been eager to subsidize these new technologies. While the avocado toast generation may complain about the price of guacamole, the resulting downgrade of their lifestyles is the opposite of what Silicon Valley would prefer.