Virtual reality shopping, AI store assistants, branded online avatars and apps aplenty –what the 5G revolution means for luxury fashion
The 5G data explosion will change every aspect of everyday life, with the growing adoption of virtual reality (VR), augmented reality (AR) and AI offering consumers richer experiences – and brands more seamless opportunities to sell
The identities of many luxury fashion brands are formed from the conceptual leadership of their founders. These histories and stories provide the foundations for the modern brands’ strategic directions.
However, the old rules are less relevant now, as Ian Rogers, chief digital officer at LVMH, explains. “The luxury business is still a business of the previous century. This century is a complete and wholesale change. It will be defined by the way human beings have been connected via the internet; also, by data and the collective intelligence derived from that data using AI [artificial intelligence] and machine learning.”
Brands’ use of virtual reality (VR) and augmented reality (AR) is likely to increase as 5G capabilities make experiences richer and more seamless, supporting purchase consumers’ decision-making. The fifth generation of mobile technologies, or 5G as it’s generally referred to, represents a major increase in broadband mobile network capabilities. In short, it will enable people to download more content much faster than 4G.
China, a leading force in 5G, has already rolled out the new communication network. The country’s tech giants, from Huawei to Tencent, have invested heavily in the service, including building the infrastructure to supplying 5G-powered devices and services such as cloud gaming.
Kiki Fan, general manager of the planning and implementation department at Tencent, says, “In the near future, 5G will give brands the capability to communicate high-quality information instantaneously, and eliminate lag time, ultimately improving the consumer experience.”
5G is likely to have an impact on a few fashion industry fronts: supply chain connectivity, retail operations, service and sales executions. It is also poised to affect the level of creativity and innovation brands incorporate into their engagement with consumers.
On the retail and supply chain operations aspect, AI will drive more effective brand buying and merchandising systems that will enable businesses to use real-time data and automated inventory supply and replenishment; in short, faster and more accurate responses to consumers’ demands. Add to this beacon technology networked through the internet of things (IoT) and brands will have stores that can deliver personalised digital communications, immersive experiences and customised service to individual consumers – or markets.
Luxury group Kering unveiled an immersive pavilion at the 2019 Import Expo in Shanghai, which showcased the group’s history of innovation and provided visitors with a digital experience through multisensory displays and interactive installations.
Sephora has launched a new app feature – Virtual Artist – that use AR to help customers try products before making their purchases.
