Strategic approaches to augmented reality deployment by luxury brands

Abstract Luxury brands’ pioneering digital strategies now incorporate augmented reality (AR), which offers new opportunities thanks to AR unique characteristics. Luxury brands differ from other brands in their specific attributes, such as authenticity, exclusivity, hedonism, and aesthetic expression. This research investigates how AR characteristics can support luxury brands by drawing on illustrative cases of AR deployment by luxury brands and in-depth interviews with executives and senior managers. Specifically, it identifies how luxury brands deploy AR through four distinct strategic approaches focused on: ephemeral elevation; auratic amplification; bespoke personalization; and effortless continuation. The study contributes to literature on digital technologies and luxury brands by offering, first, a focused analysis of how AR uniquely conveys luxury attributes, and second, by conceptualizing how AR enables brands to enhance customer journeys and brand experiences through four strategic approaches. Finally, it provides managerial guidance on how luxury brands can effectively deploy AR to build brand equity.