Jaime Castelló (ESADE): "Technology has created new product categories that luxury has not yet reached"

“Technology and luxury don’t always go hand-in-hand. In fact, quite the opposite: Can’t technology sometimes be a threat?” With this question, Jaime Castelló, Lecturer in the Department of Marketing Management at ESADE, kicked off a panel discussion entitled “Technology and Premium Accessories”, which formed part of the Luxury Spain Summit, the first international luxury-goods conference organised by the Spanish Luxury Association and ESADE Business & Law School. For Blanca Ponzano, General Manager at LVMH, the answer to the question is clear: “Luxury and technology can coexist perfectly. Something similar happened with the quartz crisis of the 1970s, but today we’re still selling the same number of mechanical watches. But luxury is not at odds with innovation. In fact, the tradition at our firm is to never stop innovating. In the future, 50% will be luxury and 50% will be technology.”

But what kinds of technologies? Mr. Castelló had a clear response: “Technologies that have created product categories that luxury has not yet reached. Here we have very recent examples, such as simple helmets, which have become a collector’s item.” Francesc Carmona, Brand Manager at Montblanc, commented: “I believe that the future of luxury will still be the things that really thrill people. The key is not technology, but rather what the product means to you.”

Alfonso González, Country Manager at Dupont, commented: “Luxury still has its own identity markers, and they’re not necessarily the same as for technology. For example, with luxury, the place where the products were produced is still important. With technology, it’s not.” Mr. Carmona also expressed his reservations: “We do a lot of thinking before we release a new product. Luxury is time; technology isn’t.”

Luxury sales in Spain rose 5% in 2015 to reach €6 billion

The Luxury Spain Summit, held on the Madrid campus of ESADE Business & Law School, featured the participation of Isabel Borrego, the Spanish Secretary of State for Tourism; Carlos Espinosa de los Monteros, the Spanish Government’s High Commissioner for the Spain Brand; Alejandra Polacci, Director General of Madrid Excelente; Beátrice D’Orléans and Cristina Martín, Honorary President and President of the Spanish Luxury Association, respectively; and Enrique Verdeguer, Director of ESADE Madrid. During the event, a new report on the luxury industry was presented. The report showed that the luxury industry posted €6 billion in sales in 2015, a 15% year-on-year increase.