Published in ·
--
The luxury market is predicted to grow by 2%-4% in 2024, allowing for regional and international variations, according to McKinsey’s analysis. This year, the luxury retail market is expected to reach a minimum value of 305 billion euros, driven by strong demand in Europe and the United States. In this article, we will explore the key trends shaping luxury retail in 2024.
Digital transformation
With 20% of luxury goods sales expected to be made online by 2025, luxury brands are increasingly prioritizing digital transformation. Many fashion houses are embracing cutting-edge technology to enhance their online presence. For instance, Louis Vuitton introduced an AI-powered chatbot service during the VivaTech event in 2021. They claim that this technology enables them to handle more than 60% of customer inquiries around the clock. Gucci, on the other hand, offers customers the opportunity to connect with online sales advisors. And Chanel has been developing a virtual fitting-room service.
Immersive shopping
Immersive technology is expected to have a significant impact on luxury retail in 2024. Luxury brands are leveraging these technologies to provide customers with unique and interactive shopping experiences. Customers will have the opportunity to virtually try on products, visualize how they would look or fit in real life, and even explore virtual showrooms or events. For instance, Lancôme, part of L’Oréal group, launched Lancôme Happiness Nights by offering an immersive journey live from its store on the Champs-Élysées in Paris. This technology not only enhances the convenience and accessibility of luxury shopping but also allows brands to showcase their products in a more engaging and personalized manner.
Web3 marketing
Luxury brands such as Louis Vuitton, Dolce & Gabbana, Gucci, Ralph Lauren, Burberry, and Prada are actively exploring the potential of Web3 technologies. As an example, Dolce & Gabbana successfully sold nine unique digital assets, including dresses, suits, tiaras, and crowns, as NFTs. These NFTs were purchased for an impressive 1,885,719 Ether, equivalent to over 6 million euros. Additionally, some luxury brands have begun accepting cryptocurrencies as a means of payment. As we look towards 2024, Web3 marketing is expected to gain popularity among luxury brands due to its ability to drive customer loyalty with remarkable and unforgettable experiences.
How luxury brands can compete in 2024
Cappasity offers all the necessary tools for luxury fashion brands to implement immersive technologies and Web3 into their marketing strategies. It offers the first scalable solution for the fast production and easy embedding of 3D/AR content into websites, mobile apps, classifieds and marketplaces. The solution includes the SaaS platform, the Easy 3D Scan software for content production, and API/SDK for integration scenarios. The Cappasity platform allows clients to create, analyze, and embed immersive content.
Watch the video to see how immersive content enhances an e-commerce website.
The platform supports general content formats, including 3D models. So, if you have a ready-made 3D model of an item then you can upload it directly on the Cappasity platform with a couple of clicks. Once the 3D model is uploaded you can embed it into your online catalog. Retailers can also use our player to activate the AR view for a 3D model of the shopping experience on their websites. Mobile users will be able to instantly launch the AR experience on their smartphones, while desktop users will only need to scan the QR code leading to the AR experience. QR codes are generated automatically by the platform and don’t require any additional effort on the client’s behalf.
We’ve also developed our proprietary data format, solving the problem of fast and affordable content production. The technology allows you to create 3D Views and AR Holograms of items without manual 3D modeling. You simply have to shoot a video and process it in Cappasity Easy 3D Scan software. Unlike photos and videos, 3D Views are fully interactive, allowing customers to get a good look at an item from any angle and zoom in to see the details. This enables them to examine a product as they would in real life, truly seeing the quality and details so they can purchase with confidence. The key metrics obtained after performing the Cappasity customer development prove the point: the client experience becomes 33% more efficient, perception of the product improves by 23%, and customers become 29% more deliberate about making a purchase.
Click the “Cube” icon to activate an AR experience.
Cappasity AR Holograms provide animated views, allowing shoppers to see materials in movement and better envision how the desired items would fit. They can be used not only in e-commerce but also in brick-and-mortar stores. Retailers can print QR codes redirecting shoppers to AR Holograms and add them to item tags for the realization of an AR-based shopping experience. The consumer simply needs to scan a QR code with their smartphone to explore a whole outfit or separate items in the surrounding environment. Using AR to view fashion pieces allows consumers to get a clearer sense of their real-life appearance, enhancing the shopping experience by making it more interactive and user-friendly.
On top of that, Cappasity is working on a solution that will allow brands to launch an NFT-based loyalty program. Besides regular photos, videos, and text, a Cappasity NFT may grant access to immersive content, including AR and virtual try-on experiences. They can also include VIP perks and NFT holder benefits, such as runway show passes, backstage meet and greets with a brand’s designer, exclusive access to pre-sales of items, and more. Brands can add new content to NFTs even after their customer gets the token, meaning that the Cappasity NFTs will function as a new customer communication channel.
To leverage immersive technology into shopping or build customer loyalty with an NFT-based program, feel free to contact our team at support@cappasity.com
Stay tuned and follow us on Instagram, X, or Facebook for more news!
