{"id":4734,"date":"2025-09-24T18:15:35","date_gmt":"2025-09-24T18:15:35","guid":{"rendered":"https:\/\/palmer-consulting.com\/reinventing-the-value-chain-for-luxury-campaigns\/"},"modified":"2025-09-24T18:15:35","modified_gmt":"2025-09-24T18:15:35","slug":"reinventing-the-value-chain-for-luxury-campaigns","status":"publish","type":"post","link":"https:\/\/palmer-consulting.com\/en\/reinventing-the-value-chain-for-luxury-campaigns\/","title":{"rendered":"Reinventing the value chain for luxury campaigns"},"content":{"rendered":"<h2 data-start=\"1220\" data-end=\"1309\">Reinventing the value chain of luxury campaigns: AI and economic transformation<\/h2>\n<h3 data-start=\"1311\" data-end=\"1362\">Palmer IA and the genesis of Digital Twins<\/h3>\n<p data-start=\"1364\" data-end=\"2229\">In the above-mentioned project, Palmer IA helped a fashion house <strong data-start=\"1426\" data-end=\"1461\">produce Digital Twins<\/strong> of its muses to feed its international campaigns. The process involved scanning models in high definition and generating hyper-realistic images and videos using multimodal models. The company&#8217;s lawyers, bookers and executives took part in workshops to understand the technical and legal implications. This collaboration has shown that AI does not replace shootings, but rather <strong data-start=\"1919\" data-end=\"1953\">shifts the creation of value<\/strong>: a reduced number of production days is enough to feed multiple digital declensions. The approach is humanistic: the model retains control over his or her image and receives specific remuneration. This precedent sheds light on the thinking of Elite and other luxury brands.     <\/p>\n<h3 data-start=\"2231\" data-end=\"2275\">Overview of current and emerging uses<\/h3>\n<p data-start=\"2277\" data-end=\"3414\">AI is making its presence felt at every stage of the campaign value chain. <strong data-start=\"2347\" data-end=\"2359\">Upstream<\/strong>, predictive algorithms identify trends, optimize design and simulate virtual prototypes. <strong data-start=\"2476\" data-end=\"2501\">During production<\/strong>, AI-driven cameras and software improve lighting, correct imperfections in real time and compose 3D scenes. <strong data-start=\"2660\" data-end=\"2671\">Downstream<\/strong>, generative models create infinite variants of a shot: changing color, adapting to different markets, transposing a mannequin into a virtual set. Post-production studios use &#8220;multimodal AI&#8221; technologies that combine text, image and audio to generate complete videos. A Palmer AI publication points out that these systems are capable of <strong data-start=\"3070\" data-end=\"3203\">describing an image, answering questions based on a photo and generating an image from a simple text description<\/strong>. Brands are also using multimodal chatbots capable of analyzing a photo of a damaged product and suggesting a replacement.   <\/p>\n<h3 data-start=\"3416\" data-end=\"3461\">Economic impact: figures and trends<\/h3>\n<p data-start=\"3463\" data-end=\"5124\">The appeal of these technologies is driven by spectacular market growth. According to Precedence Research, <strong data-start=\"3576\" data-end=\"3625\">the global market for AI applied to fashion<\/strong> was valued at $2.23 billion in 2024 and is expected to reach <strong data-start=\"3696\" data-end=\"3737\">$60.57 billion by 2034<\/strong>, representing a compound annual growth rate (CAGR) of 39.12%. A Market.us report on AI in luxury brands indicates that <strong data-start=\"3907\" data-end=\"3998\">the market will grow from $1.2 billion in 2024 to $5.6 billion in 2034<\/strong>, with a CAGR of 16.2%. The study highlights that 90% of fashion and luxury executives see AI-driven personalization as essential, and that <strong data-start=\"4190\" data-end=\"4292\">generative AI could contribute between $150 and $275 billion in incremental profit<\/strong> in apparel and luxury over the next five years. In the beauty sector, AI already represents a <strong data-start=\"4461\" data-end=\"4498\">$4.43 billion<\/strong> market <strong data-start=\"4461\" data-end=\"4498\">in 2024<\/strong>, with a projection to <strong data-start=\"4522\" data-end=\"4560\">$27.65 billion in 2034<\/strong> and a CAGR of 20.2%. McKinsey estimates that <strong data-start=\"4640\" data-end=\"4742\">the beauty industry alone could add $9-10 billion to the global economy<\/strong> thanks to generative AI. Finally, the global market for luxury goods (fashion, cosmetics, perfumes, watches, jewelry) reached <strong data-start=\"4909\" data-end=\"4947\">$398.5 billion in 2025<\/strong> and is expected to climb to <strong data-start=\"4969\" data-end=\"5007\">$670.6 billion in 2035<\/strong>: digitalization therefore represents a growing slice of an already vast cake.      <\/p>\n<h3 data-start=\"5126\" data-end=\"5174\">Cost reduction and time optimization<\/h3>\n<p data-start=\"5176\" data-end=\"6335\">One of the major arguments put forward by brands is the <strong data-start=\"5234\" data-end=\"5271\">reduction in costs and lead times<\/strong>. Parallel Pictures Studios, which works for luxury houses, reports that AI-generated imagery for e-commerce <strong data-start=\"5414\" data-end=\"5462\">reduces production costs by up to 70%<\/strong> compared to a traditional shoot. For campaigns, the savings are around <strong data-start=\"5589\" data-end=\"5597\">50%<\/strong>. The use of avatars and digital twins, such as those H&amp;M plans to create (30 digital twins by 2025), also makes it possible to reuse a single capture for dozens of variations. The Arta agency believes that this strategy translates into an ability to <strong data-start=\"5938\" data-end=\"6017\">stage concepts that are difficult to realize with real models<\/strong>, while improving efficiency and creativity. Models retain their rights and are remunerated for each use of their clone, and can even license their avatar to other brands.     <\/p>\n<h3 data-start=\"6337\" data-end=\"6442\">A new value chain for fashion, cosmetics, perfumes, watchmaking and jewelry<\/h3>\n<p data-start=\"6444\" data-end=\"7410\">For <strong data-start=\"6464\" data-end=\"6472\">fashion<\/strong> houses, AI makes it possible to multiply looks and personalize collections. Zalando already produces <strong data-start=\"6568\" data-end=\"6602\">70% of its editorial images<\/strong> using AI, which speeds up the launch of new products. <strong data-start=\"6677\" data-end=\"6691\">Cosmetics<\/strong> brands use image generators to create hundreds of shades and textures for each reference. In <strong data-start=\"6806\" data-end=\"6820\">perfumery<\/strong>, AI can be used to create virtual olfactory settings and broadcast immersive videos that tell the story of a fragrance&#8217;s universe.<strong data-start=\"6976\" data-end=\"6990\">Watchmakers<\/strong> are creating photo-realistic renderings of complex mechanisms and testing customized dresses, while jewelers are using 3D simulators to present unique pieces on avatars. These uses are part of a logic of<strong data-start=\"7241\" data-end=\"7266\">digital omnipresence<\/strong>: a single &#8220;hero&#8221; shoot becomes the source of a myriad of content for social networks, e-commerce and in-store experiences.     <\/p>\n<h3 data-start=\"7412\" data-end=\"7476\">From FOMO to discipline: the maturity of luxury brands<\/h3>\n<p data-start=\"7478\" data-end=\"8521\">The current dynamic oscillates between <strong data-start=\"7514\" data-end=\"7539\">curiosity and caution<\/strong>. The director of Parallel Pictures points out that most clients are adopting AI as a <strong data-start=\"7635\" data-end=\"7649\">complement<\/strong> rather than a replacement: brands shoot a traditional campaign first, then ask for AI variations. This strategy is fueled by a feeling of <strong data-start=\"7867\" data-end=\"7875\">FOMO<\/strong> (fear of missing out): even the most image-protective brands feel compelled to experiment. Even so, criticism emerges when the use of AI becomes too visible: Valentino&#8217;s AI campaign for its DeVain bag was deemed &#8220;cheap&#8221; and &#8220;disturbing&#8221; by some consumers, reminding us that the <strong data-start=\"8286\" data-end=\"8334\">perception of value and authenticity<\/strong> is at the heart of luxury. H&amp;M&#8217;s AI-generated video also sparks debate about emotion and authenticity.    <\/p>\n<h3 data-start=\"8523\" data-end=\"8560\">Towards a hybrid and ethical model<\/h3>\n<p data-start=\"8562\" data-end=\"9499\">The conclusion that emerges is that of a <strong data-start=\"8604\" data-end=\"8622\">hybrid model<\/strong>: AI replaces neither humans nor craftsmanship, but amplifies creation and enables content to be <strong data-start=\"8709\" data-end=\"8719\">scaled<\/strong> while preserving the exceptional character of the pieces. Houses will be able to segment their value chain: a <strong data-start=\"8848\" data-end=\"8869\">physical shoot<\/strong> for &#8220;hero&#8221; campaigns, then a <strong data-start=\"8908\" data-end=\"8926\">generative flow<\/strong> for e-commerce and declinaisons. This model implies rethinking contractual relations with models, revisiting remuneration scales and implementing rigorous governance (see articles 2, 3 and 4). For Elite, the challenge will be to position itself as the <strong data-start=\"9213\" data-end=\"9251\">architect of this new ecosystem<\/strong>, offering brands real and virtual talent, transparent contracts and AI expertise. The transformation, already initiated by players like Palmer IA, must be put at the service of creation, diversity and excellence.    <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reinventing the value chain of luxury campaigns: AI and economic transformation Palmer IA and the genesis of Digital Twins In the above-mentioned project, Palmer IA helped a fashion house produce Digital Twins of its muses to feed its international campaigns. The process involved scanning models in high definition and generating hyper-realistic images and videos using [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[78,76],"tags":[],"class_list":["post-4734","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence","category-customer-marketing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Reinventing the value chain for luxury campaigns | Palmer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/palmer-consulting.com\/en\/reinventing-the-value-chain-for-luxury-campaigns\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reinventing the value chain for luxury campaigns | Palmer\" \/>\n<meta property=\"og:description\" content=\"Reinventing the value chain of luxury campaigns: AI and economic transformation Palmer IA and the genesis of Digital Twins In the above-mentioned project, Palmer IA helped a fashion house produce Digital Twins of its muses to feed its international campaigns. 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