Luxury and fashion brands are going digital — and it’s not just a trend, it’s a transformation. By 2025, one in five luxury purchases will take place online. For an industry that has traditionally leaned on the exclusivity of in-store experiences, this is a major shift. But that’s not all: nearly 80% of luxury sales are already influenced by digital channels. In other words, digital touch points now play a critical role in the customer journey, even for high-end goods.

This shift highlights the growing demand for innovative tools like augmented reality (AR) and virtual showrooms, which provide customers with engaging, interactive ways to shop. These tools aren’t just cool tech — they’re shaping the future of online shopping. Here’s how brands are leading the way and why you should care.

The Digital Shift in Luxury and Fashion Retail

For years, buying luxury meant walking into a beautifully curated store, interacting with knowledgeable sales staff, and experiencing the brand firsthand. But today’s premium customers are embracing a digital lifestyle. They want both convenience and exclusivity — and they’re finding it online.

By 2025, 20% of luxury purchases will happen on digital platforms. This is a substantial leap for brands that previously relied heavily on brick-and-mortar stores. Virtual solutions now allow customers to access these brands regardless of where they live. Even better, interactive features such as virtual try-ons and immersive shopping experiences are providing the next best thing to being there in person.

Virtual Showrooms: Recreating the In-Store Experience Online

When you think of an online shopping experience, you probably picture static product pages with endless scrolling. Virtual showrooms flip that script by offering something immersive and memorable.

What Are Virtual Showrooms?

Virtual showrooms create interactive digital environments that replicate the feeling of browsing in a store. Customers can navigate through curated collections, explore products up close, and interact with items in a way that’s visually appealing and engaging.

For example, a brand might design a digital space where users can walk through a new collection, simulating the exclusivity of an in-person launch event. These experiences make the shopping journey feel special, which is a crucial part of luxury branding.

And while putting together a virtual showroom is a costly - and big - undertaking, it can have a lot of benefits for brands. These include:

  • Accessibility: Customers who don’t live near physical stores can still enjoy an exclusive shopping experience.
  • Enhanced engagement: Products are more discoverable through creative, interactive layouts.
  • Brand storytelling: Virtual spaces allow brands to tell their story in a way that’s hard to replicate on a standard product page.

Augmented Reality (AR) Try-On Tools

Remember when online shopping meant taking a gamble on whether a product would actually fit or look good on you? Augmented reality (AR) is changing that. AR tools allow customers to virtually try on clothes, shoes, and accessories through their smartphones — no tape measure required.

How Fashion Brands Are Using AR

Fashion brands are leaning into AR to make online shopping more interactive and accurate. Whether it’s on their websites, apps, or social media platforms, AR try-ons are quickly becoming a standard feature. And social platforms are taking note - Snapchat and Meta are some leading platforms for innovation with AR:

  • Snapchat: Known for its camera-first approach, Snapchat offers AR lenses where users can try on products and even purchase directly within the app.
  • Instagram: Expanding its AR capabilities to help fashion brands engage with their followers through virtual try-ons.

These platforms offer both sponsored and organic AR experiences, giving brands flexibility in how they reach customers. AR try-ons are growing in popularity, for many reasons, including:

  • Enhanced interactivity: AR tools make shopping more engaging and fun.
  • Informed decisions: Customers can see how a product looks on them, reducing the risk of returns.
  • Social sharing: Trying on products via AR encourages users to share their experiences with friends, leading to earned impressions and organic brand visibility.

The Impact of AR on Customer Experience and Business Outcomes

The benefits of AR and virtual tools go beyond engagement — they’re transforming how customers interact with brands and how brands do business.

For many brands, location has always been a challenge. AR and virtual solutions eliminate that barrier, allowing customers anywhere in the world to experience the brand. This is especially valuable for brands that have reduced their physical footprint in recent years.

Increased Engagement and Social Sharing

Interactive features like AR lenses encourage customers to share their try-on experiences, generating organic buzz. A simple AR try-on can lead to viral moments, helping brands reach new audiences without significant advertising spend.

Sustainability and Cost Efficiency

Returns are a major pain point for e-commerce brands. AR tools help minimize returns by giving customers a clearer sense of how products will look and fit. Additionally, fewer returns mean reduced waste and a more sustainable shopping experience.

Several brands have caught our eye for the way they’re using AR and virtual try-ons, setting the standard and demonstrating both creativity and business impact.

  • Dior: Uses AR lenses to let customers try on sunglasses and other accessories.
  • Adidas: An early adopter of virtual try-ons, especially for customizable shoes.
  • Fendi: Created a virtual dressing room that replicates the in-store shopping experience.

The Role of Personalization

AR tools can also deliver personalized product recommendations. Based on what a customer tries on, brands can suggest complementary items and accessories, creating a more tailored and satisfying shopping experience.

Augmented reality and virtual try-on tools aren’t just tech gimmicks — they’re essential tools for fashion brands looking to stay competitive in the digital age. These innovations enhance customer experience, drive engagement, and reduce returns, all while building stronger connections between brands and their audiences.

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