Can Virtual Reality Save Luxury Retail?

As brands seek to add value to the shopping experience, VR is no longer just another marketing gimmick.

- Aaron Kok

You’re scrolling through Instagram and discover a Dolce & Gabbana dress you like. But instead of dropping in at the boutique, you visit the brand’s website. You are directed to a virtual boutique — it’s modelled after the physical Dolce & Gabbana store in Osaka — where you eventually buy the dress.

Yes, Dolce & Gabbana is among a growing group of retailers who have jumped on the virtual reality (VR) retail bandwagon. With the Covid-19 pandemic pushing luxury towards a digital pivot, VR consumer experiences are the way for brands to continue trading.

First things first, despite the steady growth online shopping has shown year on year, customers still spend more in-store than on a website. In March 2019, analytics company First Insight revealed that 71 percent of surveyed shoppers who shopped in a physical store spent at least US$50 ($67) compared to just 54 percent of online shoppers. And with lockdowns becoming a reality for the large part of 2020, virtual shopping quickly gained traction. No longer just a marketing gimmick, it was essential to replicate that “in-store” experience for customers who were now shopping from their living rooms.

In Milan, Gucci created a faux boutique equipped with TV set–like lighting and shelves stocked with the latest designs, allowing a live salesperson to lead you on a one-on-one shopping experience from your phone. You could ask to see a Marmont bag up close, or compare two different skirts in real time — think home shopping channels, but so much posher.