Luxury retailers are blending digital and physical experiences, using innovative tech like interactive apps and smart mirrors to engage high-value clientele while maintaining personalized service.
Luxury brands are increasingly integrating technology to enhance their client experience, blending the digital and physical realms to cater to their discerning clientele. According to Jennifer Quinette, who spoke to Formes De Luxe, a luxury house recently introduced a distinctive feature in its boutiques during the Christmas season to, as she puts it, “complement the sale of high-value handbags.” This initiative involves creating a private lounge designated for Very Important Customers (VICs), allowing them to personalize their future handbags through an interactive experience using a dedicated iPad app and samples of exotic leathers. The use of advanced technology enables clients to virtually open their bags and inspect interiors, a process made realistic by a combination of 3D modeling and photogrammetry.
This innovative solution not only aids customer engagement but also addresses the operational challenges faced by luxury retailers. With handbags priced between €30,000 and €50,000, the strategy mitigates the need for stores to maintain extensive inventories of high-value products, which can pose significant costs and security risks. As Quinette explains, “purchasing online is difficult to imagine” for products at this price point, underscoring why many luxury brands have adopted a “drive to store” strategy to encourage in-person visits.
While technological advancements have streamlined many aspects of marketing and sales, Quinette emphasizes that the physical point of sale and the role of sales personnel remain central to the luxury shopping experience. She notes the emergence of what she terms “quiet technology,” wherein technology complements rather than replaces human interaction. For instance, while AI can suggest products based on a customer’s purchase history, the final recommendation is ideally made by the sales staff, who may have observed the customer’s preferences and interests firsthand.
Additionally, another integration of technology is seen in the use of smart mirrors in fitting rooms for VIC clients. These mirrors detect RFID chips embedded in garments and display relevant information, such as videos of fashion shows showcasing the items. Customers can also create mood boards of their favorite selections to access later through the brand’s app for potential online purchases.
Quinette further assesses the application of other technologies like augmented reality (AR) and non-fungible tokens (NFTs) within the luxury environment, noting that their utilization remains limited. While brands have modernized with NFTs, the primary focus remains on physical products that embody traditional craftsmanship. This approach stands in contrast to ready-to-wear retailers, who are more inclined to enhance customer experiences due to their broader sales objectives. For example, Zara has made significant strides in digital integration with its app, allowing customers to generate QR codes for services like accessing digital receipts, returning products, and reserving fitting rooms in its flagship store at Champs-Élysées.
The luxury sector continues to explore ways to leverage technology without losing the essence of its brand identity, as businesses recognize that the tactile and personalized nature of their products is crucial in maintaining customer satisfaction.
Source: Noah Wire Services
