The use of modern technology in luxury is something we should all get familiar with. Burberry implemented interactive AR (augmented reality) mirror in their stores, already in 2018, when they launched their ‘Her’ fragrance. Customers were able to see themselves and interact with the iconic Burberry ribbon. Another, more recent, example is Louis Vuitton’s presence in the world of virtual reality, with the goal to expand their audience. In 2023, they released a limited, digital-only Treasure Trunk or those travelling through new realities.
Research
In a 2024 study, Italian retail consumers filled out a web-based survey. The questionnaire aimed to explore the perceptions and evaluations of consumers of luxury retail, on phygital technologies implemented in luxury retail stores.
Phygital technologies are a merge of ‘physical’ and ‘digital’ technologies. These technologies were presented to the participants with descriptions and images. The interactive in-store elements presented were self-checkout, interactive storefront, touchscreen display, hololens (see picture above), smart fitting room, holograms, facial recognition and neuroscience stylist.
Results
The study found that customers who reported to have previous phygital luxury experiences, exhibited a more positive perceptions than those who were unfamiliar with the pygital luxury concept. This finding highlights the importance of engaging customers with interactive designs. Increasing their familiarity with the technologies could eventually lead to more positive associations.
Photo: StarFM.com
Technologies associated with engaging and memorable experiences were interactive storefronts, hololens, smart fitting rooms, holograms or facial recognition systems. The integration of these technologies in the customer journey can create superior customer experiences and attract more customers. Who wouldn’t want to visit a Gucci store where the display items are actually holograms?
Results also showed differences in the perception of interactive technologies between high-frequency and low-frequency luxury shoppers. High-frequency consumers had a more positive evaluation, meaning that the lovers of high-end fashion were more open to the integration of technologies in during their retail journey.
Seems like transforming the retail industry and integrating the newest technologies into an experience as simple as purchasing a new shirt, has the potential to attract more customers. The study shows the positive effects of interactive retail elements and how they don’t only attract a new crowd but are well received by their loyal clients.
In an increasingly digitalised landscape, luxury retailers benefit from embracing the fusion of physical and digital realms to deliver an experience that will make any designer purchase seem like a bargain.
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