The luxury industry is undergoing a radical transformation. In an era where the lines between virtual and physical experiences are increasingly blurred, luxury fashion is standing at a crossroads.
The industry is faced with balancing its heritage of exclusivity and craftsmanship with the pressures of digital innovation, sustainability concerns, and the rise of artificial intelligence (AI). The future of luxury fashion lies in the phygital realm — a seamless integration of physical and digital experiences — and for brands to remain relevant and maintain their luxury value, they must embrace this shift. However, one question remains: How do brands bring the value of luxury that is experienced in brick-and-mortar stores and physical luxury spaces to the virtual space we’re all living in, all while justifying their price point? Christian Lowell, Creative Director at Feels Like, a studio that develops human-centred digital interfaces for brands like LVMH, VALENTINO, Loro Piana and Carolina Herrera, says:
‘The luxury fashion industry is, at its core, about cultivating brand equity and weaving narratives that justify its premium pricing. As more of our lives move online, traditional advertising is no longer enough to achieve this. This is why we’re witnessing a powerful shift towards tactile ecommerce and the creation of unforgettable digital experiences that truly connect with audiences. Our work with the LVMH Prize embodies this transformation, as we aim to craft digital spaces that not only showcase fashion but leave a lasting impact.‘
One example of this transformation in action is the work Feels Like has done with the LVMH Prize. The annual competition celebrates emerging designers and serves as a platform for innovation in fashion, with previous finalists like the late Virgil Abloh and Jacquemus. Over the past four years, and due to the need to host a digital event in the midst of the pandemic (a force that has undoubtedly accelerated the process) Feels Like has developed and hosted the award-winning digital showrooms for the LVMH Prize, showcasing how luxury brands can use technology to enhance their reach without sacrificing their exclusivity.
The phygital transformation of luxury fashion
Luxury fashion has always been rooted in exclusivity — pieces crafted with precision, made from the finest materials, and often available only to a select few. But as consumer behaviour shifts increasingly toward digital interactions, luxury brands are being pushed to rethink how they engage with their audiences. The once-clear boundaries between the physical and digital worlds are dissolving, giving rise to what is now known as the phygital experience. Phygital experiences combine physical touchpoints with digital interactions to create a seamless journey for consumers. This approach allows luxury brands to maintain the tactile, personal connection associated with their products while leveraging the vast potential of digital platforms to reach broader audiences. For luxury fashion, this shift is essential — not just for staying relevant, but for preserving the perception of value that underpins the entire industry.
By integrating elements like virtual try-ons, augmented reality (AR) experiences, and immersive digital showrooms, brands can showcase their collections in new and innovative ways, while still offering the kind of exclusivity and craftsmanship their customers expect. The challenge is in maintaining that sense of luxury in a virtual space. The LVMH Prize, with Feels Like at the helm of its digital transformation, is a prime example of how the phygital shift can be executed without diminishing the allure of luxury fashion.
The LVMH Prize: setting the standard for phygital luxury
Each year, the LVMH Prize shines a spotlight on the most innovative emerging designers from across the globe. For these designers, the LVMH Prize is a springboard into the upper echelons of the fashion industry, and the showroom plays a crucial role in their success. Traditionally, luxury fashion has been showcased through exclusive, in-person runway shows, but LVMH’s virtual showrooms have shown that luxury experiences can also be effectively translated into the digital space.
These immersive, visually stunning showrooms allow global audiences to experience the collections of finalists in an interactive, engaging way. These digital spaces maintain the exclusivity and craftsmanship that define luxury fashion, while also making the work of these designers accessible to a wider audience, democratising fashion worldwide.
The success of these showrooms demonstrates how luxury brands can preserve their identity while embracing digital tools. In fact, the LVMH Prize digital showrooms have driven significant engagement, with a 35% increase in followers and a 400% surge in votes over the past four years. This showcases that when done right, virtual experiences can enhance, rather than dilute, a brand’s luxury value.
Democratising fashion through technology
By using technology to expand the reach of luxury fashion, brands can still maintain their premium positioning. Virtual experiences, for example, allow consumers to engage with products in a more intimate, interactive way, even if they’re not physically present. This is especially important for global audiences who may not have access to the exclusive stores and runway shows that traditionally define luxury.
Through digital innovations such as augmented reality, virtual try-ons, and interactive digital showrooms, luxury brands can offer tailored experiences that make every customer feel special, regardless of their geographic location. At the same time, these innovations ensure that the brand’s craftsmanship and exclusivity remain intact while remaining relevant in a very fast, data-contaminated environment.
The work of Feels Like and the LVMH Prize is a blueprint for how luxury fashion brands can use virtual experiences to keep up with new media without losing their essence. Global audiences can explore the collections of emerging designers in a way that feels intimate and exclusive while scrolling through the faces, stories and craft of the next generation of designers.
Is luxury going to keep up? It does seem like it. Efforts made by Dolce & Gabbana, LVMH and Carolina Herrera showcase a shift in experiential marketing that is changing as the audience adapts to new formats of consumption. As technology rapidly evolves, luxury brands must prioritise bespoke experiences that seamlessly blend the physical and virtual worlds. By embracing this technological shift, they can preserve their exclusivity and craftsmanship while staying relevant and competitive in an increasingly dynamic, digital-first marketplace.
Featured image: Christian Wiediger / Unsplash