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Press Release

LVMH and Alibaba Cloud partner to revamp luxury retail with AI

Wed 29 Nov 2023

French luxury house LVMH has collaborated with Alibaba Cloud to transform the online luxury retail landscape. This partnership focused on utilising digital intelligence and AI throughout the customer journey, aiming to enhance agility and resilience in the supply chain.

Franck le Moal, Group IT Director and CIO of LVMH, discussed the partnership’s impact: “We see Alibaba Cloud as a global partner. And I want to mention it because you know that we are a big customer of Salesforce, and we are very happy to see the solid, ongoing partnership between Salesforce and Alibaba Cloud.

“The capability for Alibaba Cloud to act locally but also to act globally and to have a strategic partnership with our main partner from the US is a great story.”

Under this partnership, over 30 LVMH Maisons have adopted Alibaba Cloud’s products and services to redefine luxury retail in the AI era.

Additionally, LVMH is expanding this collaboration into Southeast Asia, supporting brands such as Sephora and DFS. The companies are also exploring innovative applications of generative AI using Alibaba’s proprietary large language model, Tongyi Qianwen.

LVMH’s strategy involves integrating technology into luxury fashion, enhancing customer interaction and creating personalised experiences. This approach includes investments in omnichannel, virtual and augmented reality, and AI-driven platforms for internal departments like manufacturing, supply chain, and marketing.

When asked about brands already benefiting from AI, Franck le Moal highlighted: “Let’s say wine and spirits. I think it’s a fantastic use case, especially on the manufacturing side using image analysis. We are really able to provide great uses for manufacturing, especially in the same Louis Vuitton factory.”

LVMH are using data from the supply chain and from various markets in order to fine tune the level of products needed to produce in multiple use cases: in fashion, wine and spirits, or perfume divisions.

The choice to work with Alibaba Cloud was strategic. Le Moal explained: “We selected Alibaba Cloud in China because we know that China is becoming a specific world within the world of technology. So, that was the reason why we started to engage with Alibaba Cloud four years ago, to create a strong and unique ecosystem in China.”

LVMH uses technology as an enabler to provide an omnichannel, immersive customer experience, blending the realms of luxury and digital innovation.

 


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