What luxury fashion consumers

want from augmented reality

V O G U E B U S I N E S S I N PA R T N E R S H I P W I T H S N A P

4 AUGUST 2023
01 V O G U E B U S I N E S S I N PA R T N E R
V SOHGI PU EW BI TUHS ISNNEAS P
S

What luxury fashion

consumers want from Almost three-quarters of fashion consumers want AR as part of their
shopping experience
augmented reality
Say it's important or very important Say it's not important

Despite the early adoption of of AR, with its AR-powered Lenses

augmented reality (AR) by fashion feeling increasingly native to the digital
and luxury brands and retailers, experience on and off platform. “We
there is a greater opportunity for strongly believe that the future will be
the technology to be applied to the all about AR and glasses. We’ve known
real-world needs and expectations of this for the last decade,” says Geoffrey
consumers. Beyond virtual try-on, many Perez, global head of luxury at Snap.
consumers envision AR being a digital
tool that could, for instance, provide Featuring consumer insights and
personalised style advice or enhance industry experts, this white paper 28%
the in-store experience. outlines how fashion customers see
AR improving their omnichannel
This is according to the results of a Vogue experience and shopping journeys in
Business consumer study, commissioned new ways. “The possibilities for creating
by tech giant Snap Inc (which surveyed truly memorable and one-of-a-kind 72%
1,100 luxury consumers aged 16-65 luxury AR experiences are vast,” says
in the UK in April 2023). Luxury fashion Carol Hilsum, senior director of open
consumers see themselves using AR innovation and new venture at Farfetch.
more over the next one to three years
with 72 per cent saying it’s important Building bigger-picture luxury
that fashion brands and retailers provide experiences
AR solutions to enhance their shopping
journey. Reflecting wider consumer shifts Respondents of the study were asked
within shopping, AR’s size within the retail to select the AR experiences from a
market was valued at $2 billion in 2021 wish list that they’d be most interested
and is estimated to reach $61.3 billion by in fashion brands and retailers offering.
2031, according to research firm Allied Styling and wardrobe consultations
Market Research, growing at a CAGR of came out as number one, while
41.4 per cent from 2022 to 2031. exploring a runway collection came in Question: How important is it to you that fashion brands introduce more augmented
second. Both of these experiences were reality (AR) solutions in the next 1-3 years?
With 750 million monthly active the preference of female respondents.
users, the Snapchat app has been Male respondents preferred in-person, PHOTO: FRANCK FIFE|GETTY IMAGES
instrumental in ensuring mass adoption more practical solutions, such as in- FO
D A TOAT BSA
OLUL RE C
R EK: YVL O
I AG
NU M
E BBAUPS PI N
É ,E SAS HI N
UB- HL O TU SAEMSBUARSVSEAYD O R
02 V O G U E B U S I N E S S I N PA R T N E R S H I P W I T H S N A P

store navigation and immersive in-store clients could choose on Snapchat,” it comes to building AR experiences, Snapchat, which transports users back
product guides. he says. “This would extend to brands need to think bigger when it to Paris in 1917, the year that Louis
providing styling advice, along with comes to purpose and value. One of Cartier designed his debut timepiece,
Olivier Bialobos, deputy managing complementary details on a particular AR’s largest impacts in wider society the Tank. “We’re on the verge of a
director at Dior, reveals how the product, such as the archival design will be education, so it’s essential that completely new era of cross-media
French fashion house is working that might have inspired it and how it brands and retailers culturally plug into brand experiences,” says Matthew
towards making AR styling a reality. appeared on the runway.” this and champion learning. Drinkwater, head of The Fashion
“We’re aiming to make it possible for Innovation Agency at London College
Snapchat’s audiences to try on several Third on the wish list was consumers Interactive and immersive brand of Fashion (LCF). “This is the start of the
products at the same time. Users wanting AR to help them gain care experience came in at number four. A generational shift from storytelling to
would create a full Dior look through and repair skills via virtual tutorials. nod to the future of things to come is story-living, where we can all be part of,
a catalogue of virtual products that This is testament to the fact that when Cartier’s AR time-travel experience on and influence, brand experiences.”

Customers prioritise education, advice, and interactivity within AR experiences

1 Digital tools that offer styling tips and wardrobe consultations

2 Explore a runway collection either offline or online

3 Being taught via virtual tutorials and motion guides how to repair, care for and/or customise an item

4 Exploring a brand’s story or design process through interactive/immersive ways

5 In-store navigation and immersive in-store product guide

Question: What aspects of augmented reality (AR) /virtual reality (VR) interest you?

D ATA S O U R C E : V O G U E B U S I N E S S I N - H O U S E S U R V E Y
03 V O G U E B U S I N E S S I N PA R T N E R
V SOHGI PU EW BI TUHS ISNNEAS P
S

Virtual try-on is evolving When it comes to AR commerce, Consumers see virtual try-on as most useful for clothing over
“people want realism”, says LCF’s other categories
When consumers use virtual try- Drinkwater. The new technology being
on, they are already inside a brand rolled out by Snap to help achieve
experience whether they realise it or this includes 3D body meshing; AI
34% 34%
not. Personalised and user-centric, real-time scene-tracking; and ray-
luxury consumers see themselves here tracing technology, which captures the
as the star of the show rather than an movement of light on AR objects more
observer. “It beats shopping within the realistically. The number one objection 30%
traditional e-commerce format of a grid consumers report having towards
of items,” says Snap’s Perez. No longer a virtual try-on is the inability to touch or
novelty, many customers now view AR feel the product. Digital touch could
as being a familiar and useful part of be achieved in the future via haptic
their everyday lives. Since 2021, more devices (such as haptic gloves or vests) 21%
than 250 million Snapchat users have which use vibrations to augment virtual 20%
20 19%
engaged with the app’s AR shopping experiences. However, consultancy
Lenses more than 5 billion times. McKinsey & Company predict that this
could be eight-10 years out.
Despite the majority of virtual try-
on experiences currently available The thrill of the runway — from home
being used for accessories rather
than apparel, the study reveals that Seventy-three per cent of consumers 10
consumers believe it most useful for are aware of AR and VR runways and
clothing, over categories such as yet the offerings from fashion and
footwear and jewellery. luxury brands are low. High overall
awareness reveals the appetite is
With accurate rendering and fit strong with audiences keen to see
being concerns for consumers, the innovation modelled. “I am really
technology is evolving fast to meet intrigued by AR experiences that Clothing/ Glasses/ Footwear Jewellery Outerwear
expectations. ”We are approaching bring runway moments to others, such apparel sunglasses
this shift as a learning curve,” says Dior’s as, for example, being able to see a
Bialobos. “As things stand, dresses and model in your own environment,” says
form-fitting clothing all pose difficulties Maghan McDowell, senior innovation April 2023, n = 1,151 luxury consumers
in their accurate depiction.” He views editor at Vogue Business. “So, rather Question: Which of the following categories do you find augmented reality (AR) try-on/
this as a temporary situation, however. than just using AR to add effects to virtual try-on most useful for?
“Our ambition is the provision of an physical runway experiences, I see an
ultra-complete virtual wardrobe to our opportunity to bring the runway to life PHOTO: FRANCK FIFE|GETTY IMAGES
audience,” he adds. in other spaces.” FO
D A TOAT BSA
OLUL RE C
R EK: YVL O
I AG
NU M
E BBAUPS PI N
É ,E SAS HI N
UB- HL O TU SAEMSBUARSVSEAYD O R
04 V O G U E B U S I N E S S I N PA R T N E R
V SOHGI PU EW BI TUHS ISNNEAS P
S

The emotional resonance that and emerge in unique ways,” she

consumers would feel being able to says. “The future of fashion entails
see avatars of themselves walking the development of immersive and
down virtual 3D runways could help engaging experiences characterised
inspire the technology of tomorrow. by deep storytelling and a sense
This vision is starting to emerge and be of exclusivity tailored for the luxury
tested within retail spaces. In 2018, Zara consumer. The fashion industry has its
enabled shoppers to see AR models own distinct characteristics and values,
superimposed in-store for a two-week which will shape the digital experiences
period via its app. In 2023, within H&M’s it offers.”
recently revamped Barcelona store,
digital mannequins helped consumers Brands would also benefit from
to visualise garments without trying engaging with viral fashion hype
them on. The hologram-style models moments, that take place on the
could also be personalised by runway and across social media, being
scanning a QR code — to adjust skin mirrored with adjacent AR experiences.
colour and size for example — to more For example, collaborative AR filters
closely resemble the customer. from designers and streetwear labels
could accompany product launches
Farfetch’s Hilsum says fashion and and digital ad campaigns, given that
luxury brands can learn a lot from 70 per cent of consumers surveyed
other categories, such as fitness, in were excited by limited edition capsule
terms of how motion technology and collections and 68 per cent excited
gamification could enhance the by collaborations between designer
shopping experiences with a user- brands (such as Gucci x Balenciaga).
centric, interactive element. Fitness
brands infuse “gaming elements into These experiences aren’t restricted
fitness routines, which tap into the to being pre-purchase. Exclusive
motivational and engaging aspects filters, styling guides or virtual at-home
of gameplay to make workouts more runway experiences can reward
enjoyable and immersive”, she says. loyalty post purchase via a QR code or
connected fashion item.
However, Hilsum emphasises that this
influence should not be interpreted
as fashion simply replicating the
gaming industry. “Fashion and luxury
digital experiences are on distinct
paths, and they will continue to evolve PHOTO: COURTESY OF DIOR
05 V O G U E B U S I N E S S I N PA R T N E R S H I P W I T H S N A P

Consumers want immersive AR McDowell of Vogue Business can already I could see a world in which every want to bring into the fitting room or
experiences in-store see AR’s potential to provide touchpoints mirror in a store eventually has some discover new items that aren’t in store,”
that promote greater engagement in AR capabilities,” says McDowell. “A she adds.
With the lockdown era behind us, store. “I really like the idea of AR effects brand might educate the consumer via
customers are keen for shopping that are accessible via billboards, store gamified prompts, or offer discount codes In April 2023, Snap Inc launched its own
experiences to be grounded in the windows and other external moments,” to those who engage.” In terms of in-store AR mirror as part of its AR Enterprise
physical. Luxury consumers within the she says. “This is especially interesting with product guides and shopping journey Services (ARES), a service to help
study rank in-store as best for inspiration in-store AR experiences, as time spent can assistance, “a customer might scan a businesses use AR tools. “We’re not saying
and discovery above all channels, directly impact their likelihood of making garment tag to find out more information AR is going to replace the excitement of
beating online editorial sites, brand a purchase.” Respondents already rank in- about a product or see a model moving going into a store but AR can certainly
websites, social content and ads, and store navigation and in-store product in the clothes. The mirror could help make stores even more exciting once
Google search. guides top five in their AR innovation wishlist“ customers narrow down the items they customers are there,” says Perez.

In-store is the leading channel for discovery and inspiration

69%
62%
60%

40

20

To find inspiration for fashion apparel products To discover new brands and/or products

April 2023, n = 1,151 luxury consumers | Question: What do you usually use [in-store browsing] for?

D ATA S O U R C E : V O G U E B U S I N E S S I N - H O U S E S U R V E Y
06 V O G U E B U S I N E S S I N PA R T N E R S H I P W I T H S N A P

Traditional luxury audiences have according to the survey. However, try-on speak to the freedom and 30 per cent more likely to say that
bespoke AR needs general awareness of AR is actually convenience it offers — and are felt the virtual try-on “helps make fashion feel
even higher for those aged over strongest by respondents aged 35 and more accessible”.
When consumers were asked why they 25, with the 35-44 age group also over. There were also aspects of AR’s
find virtual try-on useful, “being able to especially interested in using AR while usefulness which didn’t make it into the Themes around diversity and lifestyle
try on products in the comfort of my shopping in the future. As AR matures top five overall but were popular with needs, such as sizing, accessibility
home” and “being able to try on as as a technology, awareness and older luxury audiences. For example, and being time poor, are indicators
many products as I like” were the two adoption is likely to grow among all respondents who are aged 45 and of how the “distance selling” nature of
leading benefits reported (67 per cent age groups. “It’s about accessibility: over were 8 per cent more likely to virtual try-on can help better connect
and 63 per cent, respectively). how easy it is to use that technology,” say that virtual try-on allows them to brands with consumers that may feel
Snap’s Perez says. “The easier you make “try on garments and accessories that the in-store environment does
Those aged 16-24 are the most it. The larger the adoption will be.” regardless of my body type or budget” not fit with their needs. “A big part of a
interested in fashion brands and than the average across all groups. seamless experience is accessibility,”
retailers providing AR solutions, The two leading benefits of virtual Respondents aged 55 and over were says Snap’s Perez.

Users of AR try-on like its convenience and the freedom it offers to discover and explore

67%
63%
57%
54% 53%
50%

Being able to try on products The ability to try on as many products Making a better informed To gain access to store inventory I like the idea of AR try-on
in the comfort of my home as I like, without a pressure to buy purchasing decision, which lessens without having to travel making my fashion choices more
the likelihood of making a return sustainable by limiting my returns

April 2023, n = 1,151 luxury consumers | Question: What aspects of augmented reality (AR) try-on/virtual try-on are useful to you?

D ATA S O U R C E : V O G U E B U S I N E S S I N - H O U S E S U R V E Y
07 V O G U E B U S I N E S S I N PA R T N E R
V SOHGI PU EW BI TUHS ISNNEAS P
S

AR could help close the loop on Future AR experiences will intersect Consumers are most aware of established tech such as AI
sustainability with AI clienteling chatbots and virtual try-on

According to the study, 57 per cent With 77 per cent of consumers familiar
87%
of customers say AR helps them make with virtual try-on as a digital tool in
better informed purchasing decisions, luxury fashion, they are more aware of
which lessens the likelihood of them this than other innovations, such as the 80% 77%
making a return. And, 53 per cent of metaverse, NFTs and blockchain — the
respondents say they like that virtual only digital tool which has a higher 70% 69%
try-on’s capacity to lessen returns has awareness is automated customer 64%
sustainability benefits. “Many returns services such as AI chatbots. 61%
occur because a product fails to 60
meet the expectations delivered in There is an opportunity to leverage
traditional ecommerce experiences,” the existing familiarity consumers have
says LCF’s Drinkwater. “A photorealistic with this technology by embedding AI
3D render in AR can bring that product clienteling into AR shopping experiences.
directly into the shopper's home and This could include AI sales assistants and 40
build confidence in what they are stylists. “AI may not perfectly replicate the
about to purchase, reducing the spontaneity offered by great design and
likelihood of a return.” style, but it can enhance and automate
certain aspects to bring this level of
With “being taught via virtual tutorials service to a broader audience,” says 20
and motion guides to care and repair” Farfetch’s Hilsum.
already the third most popular AR
experience, consumers are clearly now Voice and conversational commerce
looking to technology to help them could also intersect well with AI
lengthen the life cycle of garments. clienteling and the virtual try-on
experience. Snapchat’s machine Automated Augmented Virtual Metaverse Brand's Traceability
The future could also see adoption of AR learning voice tools, available to brands customer reality (AR) influencers platforms engagement details of
service, e.g. try-on/virtual with digital brand's
as a creative tool to enhance or update when developing AR Lenses inside the
AI chatbot try-on tokens/NFTs products/
garments in a virtual setting. “AR can Lens Studio, include voice command (non-fungible supply
deliver the ultimate wardrobe update,” tools and voice navigation for users. An tokens) chain,
says Drinkwater. “Physical garments could early mover within this space has been e.g. using
blockchain
be enhanced with AR content and VFX a Snapchat x Farfetch collaboration, April 2023, n = 1,151 luxury consumers
to prolong the life and use of the product which included 3D body mesh and 40 Question: To what extent are you aware of the following digital fashion tools?
— a constantly evolving product that built-in voice controls to all Snapchat
can connect consumers to brands for far users to search for items and then try PHOTO: FRANCK FIFE|GETTY IMAGES
longer is a hugely exciting prospect.” them on virtually with questions such FO
D A TOAT BSA
OLUL RE C
R EK: YVL O
I AG
NU M
E BBAUPS PI N
É ,E SAS HI N
UB- HL O TU SAEMSBUARSVSEAYD O R
08 V O G U E B U S I N E S S I N PA R T N E R S H I P W I T H S N A P

as “can you show me a trench coat?” Takeaways

followed by “maybe one in navy?”.
Snapchat also launched My AI earlier • Brands and retailers should keep pace with the needs and imaginations of consumers when it comes to AR, modelling
this year, a conversational chatbot that innovation in practical ways so they can see how it would be useful to their shopping experience.
can, for example, offer advice on gifts for
a friend’s birthday, or ideas for outfits for • Beyond fashion and luxury, people will be using AR to learn new skills more widely. Luxury AR experiences would benefit from
special occasions. tapping into the wider cultural value of the technology as an educational tool.

Virtual influencers, inside an AR • AR solutions are of value at all stages of the customer journey. This includes in-store elements but also post-purchase, with
experience, could help deliver AI connected fashion items rewarding loyalty with exclusive AR experiences. Wearable AR items could also help to extend brand
clienteling and styling advice. Despite engagement and the life cycle of products.
currently being fairly nascent as a
technology by brands, high awareness • Think of AR as connecting the physical and virtual channels — allowing the physical world to feel more immersive and the
among consumers (70 per cent) reveals virtual to become shoppable.
a possible opportunity to bridge the
gap between consumer awareness and • Ensure AR isn’t planned and designed in a vacuum. Consider a more holistic approach, with AR elements integrated across
brand offering. digital campaigns.

ROI and success metrics are already • AR’s potential for richer engagement in the future could be achieved via the addition of AI clienteling, voice commerce and
starting to shift for AR. “I am seeing virtual influencers.
brands transition to metrics that are more
comparable to metaverse experiences
than to social media or e-commerce,”
says Vogue Business’s McDowell. “Brands
are looking at factors such as how
many people tried the experience, time
spent, the impact on their brand affinity
and their likelihood of returning to the
experience. Brands can also look at
overall social mentions and shares.”

As the AR commerce offering

strengthens, it’s set to be a connector
between digital, virtual and physical
customer experience. “It’s really smart
for brands to create AR experiences Boilerplate: Vogue Business surveyed 1,151 luxury consumers aged 18-65 in the UK, in March and April 2023. Consumers were evenly
that are part of wider campaigns,” split across male and female and by age group (16-24, 25-34, 35-44, 45-54 and 55-64). Participants were asked questions about their
McDowell adds. fashion habits, awareness and use of different technology tools and priorities when shopping.