AI in the Luxury In-Store Atmospherics

Abstract

Although the application of new-age technologies accelerated the orientation towards the online retailing journey in the pandemic context, the role of the physical store is still central in luxury shopping. The literature highlighted the growing impact of new-age technologies and Artificial Intelligence on consumer shopping experiences and retailing. Multiple factors are influencing luxury fashion and certainly technology changes are impacting clients’ behaviours and expectations. This study explores the critical impact of AI on in-store atmospherics, influencing the consumer in-store shopping experience. Cross-fertilising the DAST (Design, Ambient, Social and Trialability) model framing consumers’ experience with the growing literature on AI in retailing, this research empirically explores Chinese millennial consumers, a segment of tech-savvy consumers with a significant impact on global luxury markets. Based on 72 interviews with consumers and 12 interviews with luxury retail experts, this research elicits and discusses a set of factors framing the transversal role of AI in in-store atmospherics, framing its impact on the customer shopping experience. The study concludes by opening future research streams and critical appraisal of AI’s transformational impacts on luxury retailing.