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Luxury Brands and Digital Transformation Technologies

Metamorphosis is transformation. A transformation that is revolutionary and sets the tone for the future. Luxury brands are embracing the future by undergoing digital transformations where they install advanced technologies into their business and

marketing models. The digitalization of art through NFTs, augmented reality (AR), artificial intelligence (AI), and the metaverse are only a few examples of the ways luxury brands are stepping into the future.

The primary motivation for luxury brands to expand their digital marketing comes down to two factors: the pandemic and the growth and participation in technology. Because luxury brands invest in minimal advertising and a part of their experience includes exclusive and intimate services, the inability to attend stores in person or receive digital assistance became problematic. Furthermore, the expansion of technology not only encourages but almost requires luxury brands to keep up with their competitors through new and innovative digital marketing. To improve consumer demand and satisfaction, brands like Gucci, Louis Vuitton, and Burberry have entered the realm of digitized technologies.

Gucci was the first top luxury brand to invest in the metaverse platform. Their digital transformation was the creation of their very own digital world in The Sandbox metaverse called “Gucci Vault Land.” This experimental space takes users through the past, present, and future of the brand through games and NFTs. In the Vault, users learn about the history and heritage of Gucci, play games to reiterate what they have learned, compete against players to buy digital collectibles, and interact with digital guides. The Vault’s slogan, “where curiosity awaits in every corner” perfectly embodies the various interactive and engaging experiences one can have in the metaverse. Other experiences available in the metaverse which are worth exploring include SUPERGUCCI, Vault Art Space, and Gucci Town.

Not only has Gucci revolutionized its brand through the metaverse, but it has also turned to AR. Through augmented lenses on the Gucci app, customers can use ‘try-on’ applications to see what they would look like wearing certain clothes and accessories before purchasing them. They even collaborated with Snapchat with filters that offer similar ‘try on’ applications. Gucci’s participation in AR and partnerships with other popular digital brands like Snapchat exemplify the ways that the luxury brand is revolutionizing its customer experience and satisfaction in the digital world.

Louis Vuitton has also amplified their visual merchandising through AR window displays. Dr. Helen Papagiannis (Augmented Reality Artist & Designer) has always appreciated the allure of artistic window displays. Considering her career expertise, she believes AR can help revolutionize the artistry of window displays and visual merchandising for brands overall. She developed a 3D monogram pattern for Louis Vuitton using Adobe

Aero and Dimension that was presented in their Toronto location. Her AR monogram creation was one of her first projects in a series called XR Goes Pop with Louis Vuitton. She continued with the brand for four more projects.

Louis Vuitton’s usage of AR to upscale their visual merchandising and Gucci’s investment in the metaverse to improve customer brand engagement demonstrate how advanced technologies are changing the landscape of the luxury industry. The integration of technology into luxury brands’ business and marketing strategies is evidence that the future is now. Luxury brands are experiencing a state of metamorphosis.

Written by Isabel Crespo

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