Chanel: Leading the luxury retail reinvention with its Augmented Retail

The "connected mirror" in the Chanel AR boutique, Paris

There are two main reasons that have always prevented customers from buying online, namely the absence of an in-person visualization of the products and lack of the full shopping experience. Seeing, touching, wearing and comparing items with others is at the centre of the purchasing experience.
For fashion, this also means matching. Not only does the virtual try-on, enhanced by the augmented reality, allow to see its fit and characteristics, but it also gives the possibility of comparing different styles for a single item, making the overall customer experience quite similar to the in-store one. 

Chanel can be seen as one of the most successful fashion brands using technology to reach today's expanding audience thanks to its Augmented Retail project. It offers customers the opportunity to experiment online without purchasing the product, using augmented reality applications. This process strengthens the communication between the customer and the brand and encourages fashion companies to collaborate to present this experience to the user. 

In February 2018, Chanel signed an agreement with FarFetch. The first findings concerning AR implementation were so encouraging that Chanel introduced the idea in one of its flagship stores in Paris. The newly opened boutique at the end of 2018 served as a testing ground for the digital strategies of the label, aimed at creating an ever more omnichannel shopping experience. This is part of an innovation collaboration with Farfetch, which will see the luxury retailer create new online and in-store customer service tools.

“For me, it’s the meeting of the retail excellence of Chanel and the digital excellence of Farfetch. They are convinced that luxury shopping will still happen in boutiques in 10 or 20 years. And on our side, we want to think of the clients of tomorrow, so we want to test this new client experience. It’s a test and learn approach” - comment of a staff member working at the store

The AR strategy implemented by the French fashion house involves the use of data and other digital capabilities that can realize a customized shopping experience. The introduction of a dedicated Chanel app, which also concentrates on giving its most loyal shoppers more access to the brand, as well as a more personalized shopping experience, is among the digital features that have been carried out as part of the project.

Despite the close to reality experience, still, the human contact that clients have with shop assistants is not the same. One can try different outfits and visit the store but the feeling of customer care experienced while visiting the physical shop, as well as the joy of trying the items in person, is an impossible gap to fill.

Insights show that we are at the very beginning of the road in augmented reality technology. The global AR market is expected to reach $36.4 billion in 2023. Although technology is now dominant in the gaming industry, predictions show that the retail industry will take the largest share of the cake in the near future.

The marketing world has become more and more fun for professionals now that cross-marketing channels, digital technological innovations and artificial intelligence-based consumer behaviors play an important role. We witness that practices which meet corporate values, creativity, and technology, in particular, increase companies' conversion rates and brand values. At this point, brands are expected to include digital marketing in their marketing strategies in order to have a dominant position in the future.

REFERENCES

J. Stratten. (2019). 10 Leading Innovations in Luxury Retail. Insider Trends.
https://www.insider-trends.com/10-leading-innovations-in-luxury-retail/

(2020). Augmented Reality (AR) Market Size is Projected to Reach USD 3664,5 Million by 2026. PR Newswire(Valuates Reports.).
https://www.prnewswire.com/news-releases/augmented-reality-ar-market-size-is-projected-to-reach-usd-3664-5-million-by-2026---valuates-reports-301096109.html

G. Deeny. (2020). Chanel planning to roll out its Fartech Augmented Retail Experience project in new stores. Fashion Network.
https://uk.fashionnetwork.com/news/Chanel-planning-to-roll-out-its-farfetch-augmented-retail-experience-project-in-new-stores,1181542.html

C. Rydzek. (2018). Chanel’s new Paris flagship will test Augmented Retail concept. The Current Daily
https://thecurrentdaily.com/2018/11/27/chanels-new-paris-flagship-will-test-augmented-retail-concept/

L. McQuarrie. (2018). The Chanel Paris Store Supports Personalized Shopping Experiences with AR. Trend Hunter
https://www.trendhunter.com/trends/chanel-paris-store