New approaches to customer experience: where disruptive technological innovation meets luxury fashion

Abstract

Consumer behavior is shifting radically with the rise of e-commerce and new technologies. As a result, luxury retailers are forced to embrace a variety of technologies to keep their customers engaged. How do brands captivate shoppers and provide the customer experience that will satisfy their desires? Through dissemination of literature and case studies on examples from the industry, this paper presents a detailed discussion on the new approaches to customer experience in the luxury fashion industry, in the context of a modern economy that is highly shaped by disruptive technological innovations. The discussion includes two detailed case studies, focusing on two key themes that define contemporary customer expectations: the story – discussing customer’s desire to be immersed in the narratives behind catwalk collections, and the experience – discussing the use of technology to create a unique retail space through the use of online and mobile specific technologies. The first case study focuses on how new technologies provide brands with new opportunities to present their products through narratives. Using famous luxury retailers Dior, Givenchy and Prada as examples, the case study provides a detailed discussion on the use of virtual reality and augmented reality as tools that enable customers to project themselves into the story behind a catwalk show and become active characters in the narrative, through the use of technological devices. The second case study focuses on the importance of merging the online and the traditional brick-and-mortar store. “The Store of the Future”, by luxury retailer Farfetch is used as an example of how retailers make use of high-tech equipment, virtual reality and augmented reality not only to create a tech-powered interactive experience that will intrigue customers, but also to improve retail productivity by capturing customer data. The study adopts a qualitative research method to evaluate the validity of the concepts discussed in the Literature Review, using a sample of three in-depth interviews with industry experts, focusing on the use of technology to improve customer experience in physical retail spaces. Based on previously published research, it is estimated that the primary research will indicate that it is not the use of technology that drives the customer experience, but customer expectations that determine the adoption and adaptation of disruptive technologies to satisfy the shoppers’ requirements.