The concept of "virtual luxury" is emerging as a key innovation in the luxury industry, combining traditional luxury products and experiences with advanced digital technologies. Over the past few years, digital technology has gradually become an integral part of luxury brands' business models, manifesting itself in the phygitalization of points of sale, the adoption of in-store digital tools, and investments in the virtual universe, notably via digital boutiques and products, sometimes in the form of an NFT.
Virtual luxury" opens up unprecedented opportunities for innovation, customer engagement and diversification of revenue streams.
The challenges of Virtual Luxury for brands
- Adoption of new technologies New technologies: brands need to invest in advanced technologies, such as virtual reality (VR) and augmented reality (AR), to deliver immersive, innovative experiences that captivate customers.
- Omnichannel strategy Omnichannel strategy: seamless integration of the customer experience between physical and digital channels is essential. Brands need to develop consistent omnichannel strategies to ensure a seamless luxury experience, whether online or in-store.
- Maintaining brand identity Even in a digital world, it's crucial for luxury brands to maintain their identity, exclusivity and perceived quality, while adapting to the expectations of modern consumers.
- Personalized customer experience Personalized customer experience: brands need to offer a digital customer experience that is as personalized and immersive as possible, taking into account consumers' new expectations of online service and interaction. Brands could integrate consumers into the process of creating unique experiences using interactive platforms or metaverse interactive universes.
These challenges require a well-thought-out strategy and constant investment if luxury brands are to succeed à fully exploit the potential of virtual luxury ".
Training sales teams: a key investment
Brands need to invest in training their sales teams to prepare them to understand and sell virtual luxury offers effectively. This requires specific training and ongoing adaptation to technological developments, as well as an in-depth understanding of customer expectations. Proposed actions include :
- Transpose the brand's universe into digital via storytelling,
- Strengthening technical skills in digital luxury
- Offer hands-on workshops to familiarize participants with technologies such as augmented and virtual reality
- Offer personalized mentoring to deepen skills.
The introduction of "virtual luxury" disrupts teams' usual points of reference. It will be crucial to support them not only technically, but also emotionally, by valuing their role in this new ecosystem to maintain their motivation and commitment.
To find out more, read our article on retail learning.
The future of "Virtual Luxury
Virtual luxury" is opening up a new horizon for the luxury industry, profoundly transforming business models and the way brands interact with their customers. The integration of emerging technologies such as blockchain and artificial intelligence (AI) promises to redefine the customer experience and offer unprecedented opportunities. Blockchain, for example, can guarantee product authenticity and boost consumer confidence, while AI offers new ways to personalize the shopping experience, anticipating customer needs and delivering tailored experiences.
In the long term, "virtual luxury" could have a major impact on the business models of luxury brands, creating new sources of revenue through the sale of digital products. This phenomenon could also accelerate online luxury consumption, while enabling greater internationalization of digital products, transcending geographical barriers and creating a more integrated global market.
However, this transition is not without its challenges. Regulatory issues, particularly concerning digital ownership, and managing consumer expectations of authenticity and sustainability will be crucial for brands. The demand for transparency and accountability, particularly with regard to the environmental footprint of digital products, will need to be addressed to maintain the credibility of luxury brands.
Conclusion
In conclusion, the virtual luxury "represents a major turning point for the industry, offering new opportunities while posing challenges that must be met to ensure its long-term success. Our team "Luxury by Univers Retail" is ready to accompany your brand in this transformation, by proposing a personalized, structured offer perfectly adapted to your "retail learning and development"
