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How to target new luxury consumers with the help of immersive technologies

To increase sales and prosper, luxury players need to target specific demographics. After all, high-end products aren’t made for the average consumer, and brands must maintain and attract buyers who are willing to spend a little extra on items. In this regard, being customer-centric is one of the top priorities for high-end brands. So, who is the modern luxury consumer? What do they value? And how can they be reached? Let’s dive right in.

Luxury is no longer the territory of just Gen X and Baby Boomers, recent studies reveal. Luxury demographics are changing rapidly, and a new group of high-end shoppers — Gen Z and Millennials — now make up a significant part of the luxury consumer market. According to a new report by Klarna, these generations are even more likely to purchase a luxury item than their elders. In the past 12 months, Gen Z (60%) and millennial (63%) luxury purchases have outpaced spending by Gen X (46%) and baby boomer (18%) shoppers.

It comes as no surprise that younger luxury consumers bring new expectations and distinct preferences about how they want to shop. Because millennials and Gen Z value experiences over things, luxury brands must focus on enhancing the shopping experience to meet the demands of new high-end consumers. For this purpose, premium brands have been investing in innovation and new technologies. In fact, most high-end shoppers (78%) see premium brands’ commitments to innovation and new technologies as a decisive reason for purchasing an item. One of the effective ways to elevate customer experience and engage with younger generations is by implementing immersive technologies into shopping.

Immersive technologies, like 3D product images, Augmented Reality, and virtual try-on have the power to make shopping more interactive, personalized, and convenient. Understanding that the new high-end consumer is eager for technologies that create unforgettable experiences, many luxury brands are already diving in. MAC and NYX have introduced a virtual try-on feature to their online stores, and the brands’ consumers can now try on cosmetics via pictures and live videos before making a purchase. Farfetch, Prada and Piaget have collaborated with Snapchat to allow shoppers to try on virtual clothes via their smartphone camera.

A smooth, convenient and engaging customer journey, created with the help of immersive technologies, helps luxury brands form better bonds with their new high-end consumers. With shoppers able to share photos of themselves wearing virtual products, virtual try-on is a perfect fit when it comes to spreading brand awareness among younger generations. On top of that, immersive content is proven to increase sales and minimize the number of returns.

As an IT company bringing innovation to online shopping experiences, Cappasity has developed a groundbreaking solution for creating immersive content for e-commerce. With Cappasity, high-end brands can create AR holograms that overlay 3D content onto the real world, providing customers with a way to interact with the product directly in the real-life environment. Interacting with a product in AR bridges the gap between online and offline shopping, provides more accurate information, and boosts consumers’ confidence in the product. Above all, integrating AR holograms into online shopping allows luxury brands to enhance online shopping experience and meet the expectations of the new luxury consumer.

To experience the item in AR, press the Cube icon.

On top of all this, Cappasity allows brands to create try-before-you-buy experiences. If your brand sells expensive high-end watches, it makes sense to offer virtual try-on to online shoppers to ensure they accurately evaluate the size of the watch dial and get a complete understanding of the product. Unlike other solutions, Cappasity’s AR watches try-on doesn’t require a wrist marker, which makes it easy to use. Our solution allows the user to take a photo of the watch on their wrist and share it on social media, which will definitely appeal to your Gen Z consumers.

With Cappasity’s virtual try-on for rings, luxury brands can make jewelry shopping effortless and completely interactive. The solution utilizes the AR hologram of a ring that is both photorealistic and easy to create. It allows the consumer to try the ring directly on their hand to see how it fits in a next-to-real setting. Since rings are an expensive purchase, customers will be able to make an informed decision after having tried several options remotely. It’s a perfect solution to closely simulate the luxury in-store shopping experience.

If you’d like to implement innovative technology into your high-end customers’ online journey, feel free to contact our team via

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