Augmenting the Values of Luxury Retail
With scale and credibility sorted, luxury brands are in a unique position to experiment by exploring the versatile possibilities of AR.
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In the face of changing consumer behavior, there is a growing appetite for conscious purchases that are made with purpose and intent as opposed to spending frivolously. This is ever more important in the realm of luxury retail, where brands persistently seek innovative ways to present themselves and engage with today’s discerning consumers all while upholding the core values that define a luxury brand.
Globally recognised speaker, author, and marketer Pamela Danzinger recently shared the ten values that define luxury brands today in a recent article. While these values have always been the essence of luxury brands, they need to continuously be adapted and transformed for today’s customer.
In many ways, emerging and established brands now have an equal chance to earn their merit through applying the values suggested by Pamela Danzinger. One such opportunity arises from the dynamic intersection between advanced AR curated experiences and digitally powered luxury retail. With scale and credibility sorted, luxury brands are in a unique position to experiment with these values by exploring the versatile possibilities of AR. Here’s how:
Reinterpreting exclusivity, craftsmanship and heritage
Exclusivity, craftsmanship and heritage are values that are key in identifying luxury brands. Using high-quality AR allows brands to showcase specific, fine-tuned details of their products; literally putting their designs into the hands of consumers, albeit virtually. Early movers have already found great success in doing this. For example, taking a different approach to their pre-fall show for 2023,
Dior launched a special collection in collaboration with the Chanakya School of Craft to empower female artisans in India. Using AR lenses as their creative tool, the brand showcased its collection at the Gateway of India. Users could scan the monument for a limited time only during the show, and it transformed into a moving immersive experience that connected with consumers by making them feel special through a one-off activation.
Operating in a competitive luxury industry also requires being able to strike a balance between place and time, yet transcend those boundaries to remain relevant. Again, AR makes this easier by giving creatives the authority to set their piece against different versions of reality.
Cartier did this recently by launching one of their prestigious timepieces – the Tank watch – using AR. Users could virtually try on the fourth iteration of the 106-year-old Tank watch
and purchase it using the AR lens, as well as learn more about the brand’s history. Consumers could also see the collection against the backdrop of Paris over the years, combining traditional values of heritage, sophistication, and design all at once. The sheer exclusivity of that experience struck a chord with consumers, enabling both new customers and brand loyalists to feel a part of the Cartier community.
Creative expression and sophisticated aesthetics, while staying relevant
By 2025, almost all of the Gen Z and Millennial population in Saudi Arabia and almost all UAE users of social and communication apps are anticipated to be frequent AR users. So it’s essential that luxury brands use the tools at hand to support their creative vision while staying relevant to their audiences as media habits evolve. Timing experiences to maximise relevance is key.
A great example of this comes from Bulgari. The luxury Italian brand leveraged the use of a bespoke AR Lens during its Ramadan campaign, creating an immersive approach and interactive platform experience. The AR Lens enabled users to discover Bulgari’s Ramadan collection and be inspired for gifting ideas ahead of Eid. The power of an AR tool such as a lens, demonstrated a 24% increase in the brands reach amongst core audience profiles.
Brands like Bulgari continue to also show great success with AR at seasonal calendar moments, as it not only illustrates relevance towards local and cultural nuances, but practically also increases page views, lifts brand favorability, and increases action intent.
Moreover, luxury brands can now use AR to connect with consumers through a spark of artistic creativity as interpreted through the eyes of a designer.
Louis Vuitton capitalised on this in collaboration with renowned Japanese artist Yayoi Kusama to showcase her signature vibrant polka dots over the brand’s outlet in New York, then later giving consumers the chance to “Kusama-fy” landmarks
in major cities including the Arc de Triomphe and Eiffel Tower in Paris and the Statue of Liberty in New York. In particular, the rapid pace of digital innovation across our society is raising the benchmark for what consumers expect from luxury brands. We’ve found that over 80% of consumers in the UAE and KSA, for instance, are interested in using AR to interact with a product before buying it.
Essentially, the widespread adoption of AR enables luxury brands to extend and enrich customer experiences outside of their physical storefronts. As consumer retail experiences and expectations continue to evolve rapidly, luxury brands are poised to meet the demands of their clientele through an integrated combination of creative storytelling with immersive engagements, all while preserving their unique heritage, distinctive values and refined qualities.
