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Key takeaways:
- Virtual victories help to propel Versace and Hugo Boss. Less than half (28/60) of brands assessed offered augmented reality (AR) or virtual reality (VR) features during the latest assessment period, with virtual try-on becoming increasingly popular and immersive VR experiences providing a popular format for brand storytelling. New devices like the Apple Vision Pro are helping to create a stronger infrastructure for delivering virtual experiences.
- New legislation makes traceability mandatory. The number of brands providing traceability information using tools such as blockchain has increased from 32 to 36 out of 60 since the last Index. With the EU introducing new legal requirements for digital product passports (DPPs), this figure should rapidly rise over the coming year. However, unifying supply chain visibility with customer-facing benefits such as loyalty schemes or warranties still represents a continuing challenge for brands.
- Rental and resale fall out of favour. Despite offering a way for luxury labels to recruit more aspirational shoppers, especially in a tighter economy, the number of brands integrating rental and resale as part of their channel mix has declined since the last Index, with experiments such as archival pre-loved sales failing to materialise into permanent propositions. In contrast, the number of brands offering buy now, pay later, with partners like Klarna, has increased, indicating a strong industry push for shoppers to prioritise buying new, even in constrained circumstances.
Since the last Index, the innovation ranking has seen a shuffle in the top players, although Gucci has defended its lead position, which it has held since the innovation pillar was added in H1 2022. Innovation headlines over the last few months have been peppered with sustained interest in AR and VR experiences, while wearables and connected devices have also come to the fore. Good examples include Chanel’s Première Sound necklace, worn as a watch, and Gucci’s virtual reality film for Apple Vision Pro. Who is Sabato De Sarno? A Gucci Story is a 20-minute short documentary narrated by Paul Mescal, exemplifying how important it is that even leading brands continue to educate their fans and followers on the personalities leading their creative direction. Balenciaga has become the first luxury brand to bring its runway experience to Apple Vision Pro. Accessible through a new Balenciaga app, the experience offers the option to watch multiple runway videos, including the spring 2025 Shanghai show, with a clickable carousel lookbook.
