The aim of this paper is to explore how luxury brands use new technologies in the context of smart retailing. Building on qualitative data from multiple cases from the luxury industry, our analysis reveals that this sector is conscious of the benefits of using smart technologies as marketing tools, while the effective use of these innovative systems is still limited. However, studies on innovation forces affecting the retail industry are still limited in luxury sectors. The study provides an empirical contribution to the emerging topic of smart retailing with an emphasis on the luxury sector through its in-depth investigation of the usage of smart technologies by the firms studied.

Introduction

In recent years, retail industry has witnessed an increasing number of technologies able to largely improve processes while entertaining consumers (Dacko, 2017; Demirkan and Spohrer, 2014; Hristov and Reynolds, 2015; Kumar et al., 2014; Pantano et al., 2017; Willems et al., 2017). These technologies can be classified into 3 main typologies: (i) digital technologies, which include social media and the online channel for e-commerce (Gao et al., 2013; Groß, ۲۰۱۵; Hsiao, 2009; Pantano and Verteramo, 2015); (ii) mobile technologies, which include retailers’ mobile app (i.e. Hermés app to find the perfect match between the tie and the shirt) (Pantano and Priporas, 2016; Varnali and Toker, 2010); and (iii) immersive/pervasive in-store technologies, which include ibeacons, interactive storefronts and displays, etc. (Pantano and Verteramo, 2015; Papagiannidis et al., 2017). The rapid diffusion of Internet technologies provides consumers with new online platforms where they can purchase directly at home 24/7 (recognized as I-commerce, e-commerce, e-tailing, or e-store) (Pantano and Verteramo, 2015), which is perceived by consumers as a more convenient shopping environment (Harris and Dennis, 2011; Hsiao, 2009; Jiang et al., 2013). In fact, the new retail settings provide a superior shopping experience, which thanks to a flexible architecture and layout can be updated more frequently than a physical store, with a limited investment in software and programming, enhanced 3D graphics able to enhance product display and interaction, the offer of a wider range of services, such as recommended systems for supporting a consumer’s purchase decision, enhanced information on the product (i.e. video explaining the manufacturing process), home delivery polices, etc.; and convenience in terms of location, parking, opening hours and access, because it consists of a store, accessible anytime (24/7) and anywhere where an desktop internet connection is available (Pairin and Keng, 2003; Pantano and Verteramo, 2015). Mobile technologies provide marketing with new tools able to distribute interactive and personalized information which overcomes the traditional time-space paradigm where traditional marketing took place (Pantano and Priporas, 2016; Rippé et al., 2017; Varnali and Toker, 2010), in other words it involves new marketing services delivered through ubiquitous networks that consumers may access anywhere and anytime from their own mobile device, based on a high level of connectivity and context-awareness (Gao et al., 2013; Pantano and Priporas, 2016). This is based on the mobile devices’ ability to adapt their behavior to users’ individual usage (to reply to consumers by automatically recognizing some information about them, such as their location) (Pantano and Priporas, 2016). The emerging Internet of Things (IoT) technologies, such as indoor positioning, augmented reality, facial recognition, and interactive display support the development of innovative solutions for smart store implementations.