Artificial Reality: Fashion's new dimension
Everyone that has lived on planet earth during 2021 has already heard about the “Metaverse''. However, the term which is defined as the next phase of the internet as we know it, still appears as very complex to many. While “Embodied Internet” or internet 3.0 is already known as the future of our daily lives, there is still a lot of confusion regarding exactly how companies can move into this next chapter. Indeed, many opposing voices are already spreading fear by suggesting that in the future humanity will be strapped to virtual reality headsets ,which will eliminate any traces of real life.
What many forget of course, is that internet 3.0 does not just include VR - virtual reality (a fully immersive computer-generated simulation of a three-dimensional environment that can be interacted with by a person using special electronic equipment) but also AR. Augmented reality ( technology that superimposes a virtual image on top of a user's view of the physical world, enhancing his reality) has been around for a while. Moving forward, AR is set to lead the Metaverse conversation and allow for immersive and emotional connections, ultimately bringing the shift from a 2D screen such as a phone or laptop into a more realistic, frictionless environment. Mastering AR will be extremely beneficial for brands, eventually leading to completely new ways of conducting business and connecting with customers in a more engaging way. Core part of the luxury industry is being able to offer extreme value through products, services or simply brand perception. Augmented reality could certainly add to that value proposition in a multitude of different ways and allow for multiple new luxury experiences. But how could brands start utilising specific use cases?
Living in the era of e-commerce oversaturation, the combination of physical and digital experiences achieved through AR technology, seems to be the perfect solution to current consumer needs. The art of selling online in the best way possible has to be excelled by most luxury organisations, taking into consideration that a large percentage of their total revenue is already coming through that channel. Augmented reality can currently be implemented throughout the full user journey to enhance experience beyond current limitations as well as to offer the wow effect that will differentiate a brand from its competitors. The correct way to do so is by revisiting basic marketing essentials like the marketing funnel.
Starting with awareness around a product or service, AR technology can help with the creation of filters, such as masks, that can go viral and that allow for extremely engaging marketing strategies. While this is nothing new with the likes of Snapchat and Instagram leading that conversation, there is still an incredible amount of opportunity that can be leveraged. Dior, for example, recently launched a series of marketing filters meant for brand awareness that allow users to view bags and silk headpieces on their body. This is opening the brand to many more people that might have otherwise never even thought about “trying on” a dior piece. AR effects can also influence awareness with an interactive offline-to-online campaign using Target Tracking. Using barcodes, specific images, points or targets, a user's camera can open a portal of interactive AR effects when pointed to somewhere specific. Jean Paul Gaultier created an AR marketing campaign that showed the Eiffel Tower being wrapped in their colors once a user viewed the historic monument through Snapchat Lense. Fashion houses could also implement virtual mirrors outside and inside of their boutiques, thus allowing window shoppers and potential customers to see themselves wearing a garment virtually without the help of specific equipment. Going into the next step of the funnel, AR can grow consideration by allowing for virtual try on, aiding decision making and brand storytelling. Interested individuals will now be able to experience and see products on their body or space instead of simply imagining them, something that is by default increasing purchase intention. When it comes to the deciding moment of completing a purchase, AR can completely alter the purchasing experience that a brand can provide. Clients will now be able to view at their physical room through a camera or AR glasses and immediately “enter” a portal, where they will be able to see the brand's virtual boutique presented inside of their house. By default this would mean that an individual’s living room can turn into the runway of a couture maison, allowing a fashion brand to provide the same experience as they do in store (complete with virtual shelves full of handbags, virtual mirrors, and shopping assistants). When it comes to customer loyalty and retention, companies can assign clients with virtual personal assistants. These will be assigned to answer customer questions, make them feel supported and maintain a long term relationship with them. A customer will, for example, be able to lay on their bed, while a virtual associate of Gucci, enters the space through Augmented Reality and shows them the latest collection or the inspiration behind it. Lastly, AR opens a whole new stream of revenue potential by creating a completely new type of using virtual items. Chanel for example might be selling virtual gowns as NFTs in the future (similarly to the items currently found on Dress X), since people will be able to see those virtual garments on each other while walking down the street wearing smart glasses.
So what is stopping mass adoption as of yet? While the technology that allows these tasks already exists, we are all eagerly waiting for big tech hardware companies to announce the “ next iPhone”. A smart glasses type of device that will allow people to fully experience Augmented Reality like view their messages on top of the physical world, scroll the internet while looking at the ceiling or shop on amazon.com from their living room. While universal adoption of a revolutionising technology happens faster when it is entertaining and engaging in nature (something that AR already has), big revolutions also require mass adoption of course, hence these upcoming devices will have to be sold in a variety of prices low enough to allow as many people to afford this type of technology. Once that has been achieved, brands should work cross functionally with their entire internal and external structures to strategise on a holistic level and connect their digital, virtual, and physical experiences into a cross-platform brand experience that will offer something customers have never seen before.
