Virtual reality in the luxury fashion industry: a systematic literature review

Abstract

Purpose

This paper aims to synthesize the existing literature on virtual reality (VR) in the luxury fashion industry, discuss the current practical applications of VR technologies and review previous research undertaken in the luxury fashion field.

Design/methodology/approach

This paper conducts a systematic review and thematic analysis of existing literature to evaluate current research concerning VR and the luxury fashion industry. This search initially returned a total of 1,131 sources. After establishing and applying criteria of exclusion and inclusion, a total of 46 articles were selected for the thematic analysis.

Findings

Five major themes were identified, including virtual luxury fashion consumption, VR in marketing communication, virtual try-on, VR retail (including virtual fashion retail spaces) and virtual worlds (including customers’ virtual representation as avatars). The importance of these themes for the study of VR in luxury fashion is supported by relevant studies in the literature.

Originality/value

Whilst research into VR use within luxury fashion has increased recently, it remains fragmented. Given the absence of a comprehensive review addressing this topic within the literature, this paper will help scholars and fashion brands better understand the effects of VR on the luxury fashion industry. By integrating current practice and existing research, this paper contributes to a better understanding of how and where VR is used in luxury fashion contexts.

Citation

Liu, T.(T)., Tan, C.S.L. and Quintero Rodriguez, C. (2024), "Virtual reality in the luxury fashion industry: a systematic literature review", Spanish Journal of Marketing - ESIC, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SJME-07-2023-0203

1. Introduction

Luxury fashion is distinguished from non-luxury fashion by its comparatively high price, premium products and exceptional customer experiences and strong brand image. According to Bain and Company (2023), in 2022, the luxury industry was worth €1.15tn in 2021 and further increased by 19%–21% after a contraction in 2020 due to the COVID-19 pandemic. Luxury fashion consumption refers to an experience in which consumers perceive value from the exclusive products and exceptional customer services offered by luxury fashion brands (Aleem et al., 2022). However, traditional luxury fashion consumption (in which physical goods are purchased through human-to-human interaction at brick-and-mortar stores) has been revolutionized by luxury fashion conglomerates that include LVMH (e.g. Louis Vuitton and Christian Dior) and Kering (e.g. Gucci and Balenciaga). Rather than relying on traditional consumption models, these brands have begun to work toward reinventing the consumer experience by incorporating virtual reality (VR) technologies.

VR refers to a computer-generated experience that offers users the feeling of being immersed in a real or imagined environment (Shin, 2018). VR technologies are thought to have great potential for the fashion industry in multiple areas; for example, fashion designers can use VR technologies to virtually simulate and develop three-dimensional (3D) dynamic fashion garments (Choi, 2022). VR technology can also be used to augment existing shopping platforms, create completely virtual fashion stores (Park et al., 2018) and encourage customer engagement by personalizing 3D virtual environments (VE) for each consumer (Wu et al., 2022). In addition, luxury fashion marketing stands to benefit from VR technology that allows customers to attend virtual runway shows (Jung et al., 2021).

VR research in the context of luxury fashion has grown recently but remains fragmented for three primary reasons. First, scholars rely on a variety of different definitions to identify and explain the features of VR technology, such as “virtual third place” (Alexander, 2019) or “interactive digital technology” (Colombi et al., 2018, p. 393). No consensus on the meaning of VR technology leads to difficulty for researchers in comparing and synthesizing the findings from different VR studies.

Second, the practical applications of VR in the luxury fashion industry are currently in the development and exploration phase. Some researchers focus on VR in fashion shows (Jung et al., 2021), while others study virtual luxury fashion products (Joy et al., 2022). Current research demonstrates the variety of possibilities for the use of VR in the luxury fashion industry but is not cohesive either thematically or methodologically.

Finally, there is no cohesive framework for research concerning VR and the luxury fashion industry. Aleem et al. (2022) mentioned that many luxury fashion brands have adopted VR technology to create virtual and immersive luxury products and experiences. Given these trends in the industry, future studies should aim to understand how VR changes consumers’ approach to the luxury fashion industry and explore theoretical frameworks with which to understand these immersive experiences.

To address the issue of fragmented research and contribute to VR-related research in the luxury fashion context, this study addresses three research questions:

RQ1.

What definitions of virtual reality exist, and what are its distinctive technical features?

RQ2.

How is virtual reality currently used by the luxury fashion industry, and what are its effects?

RQ3.

What studies exist that can contribute to virtual reality-related research in the context of luxury fashion?

This study addresses these research questions by analyzing existing research and current practical applications of VR in the luxury fashion context and synthesizes common research trends for analysis in future work. To achieve these aims, this paper conducts a systematic literature review (SLR) and thematic analysis, evaluating 46 articles addressing VR related to the luxury fashion industry. The review included five topics: virtual luxury fashion consumption, VR in marketing communication, virtual try-on technologies, VR retail (including virtual fashion retail spaces) and virtual luxury fashion in VWs with user avatars.

This paper is divided into four major sections. First, to address research questions one and two (RQ 1 and 2), this study addresses VR technology, its definitions and constitutive features, with an eye toward practical applications of VR in the luxury fashion industry. Second, the study offers an overview of the SLR methodology according to Xiao and Watson (2019). The study’s methodology closely follows Xiao and Watson’s proposed research strategy, beginning with a broad search of existing literature, screening results of this search for inclusion and exclusion, and finally providing a descriptive overview of the sources reviewed. Third, the study reviews its findings and addresses research question three (RQ 3). Fourth, the study concludes with future research recommendations and a discussion of its limitations.

2. Virtual reality and its applications in the luxury fashion industry

VR is a simulated object, environment or experience that offers users the feeling of being mentally immersed or physically present in that simulation (Shin, 2018). Early definitions of VR that identify constitutive technical features are inconsistent. Steed and Schroeder (2015) claim that VR mainly composes two environments, the collaborative virtual environments and the nonimmersive VEs, for users to experience. The former often requires users to use specific tools, such as VR headsets and data gloves, to immerse themselves in a simulated 3D space (Steed and Schroeder, 2015). The latter allows users to experience a VE or product on a flat screen (e.g. a conventional smartphone or laptop) and typically includes the manipulation of an avatar in that VE (Steed and Schroeder, 2015).

Hollebeek et al. (2020), in contrast, categorize VR according to its hardware and software features and use the terms Autonomous VR to describe the environment offed by dedicated VR hardware (e.g. VR headset) and Programmatic VR to indicate VR software integrated with conventional technologies (e.g. phone or desktop applications). To establish a robust theoretical framework within the luxury fashion context, this study conducts a synthesis of previous research and investigates the applications of VR in the luxury fashion industry. To achieve this, the study adopts Cowan and Ketron's (2019) VR typology as a foundational framework. This typology, originally developed for the marketing domain, categorizes VR applications into three distinct groups: automated virtual environments (AVEs), simulations and virtual worlds (VWs). By using this framework, the study aims to provide a comprehensive understanding of the various VR applications within the luxury fashion industry. The following section discusses these three VR categorizations and the application of these various technologies in the luxury fashion industry (Table 1).

2.1 Automated virtual environments

Cowan and Ketron (2019) identified two types of AVEs: Cave Automatic Virtual Environments (CAVEs) and head-mounted displays (HMDs). Both applications prevent users from fully experiencing the non-VW and immerse them in a completely VE (Manuelraj, 2020). VR shopping, a typical application of AVEs, virtually simulates a realistic (or, in some cases, quite unrealistic) physical store or environment for consumers to explore. Some scholars (Xue et al., 2020) believe that VR shopping (also called v-commerce) is a natural development of e-commerce and the implementation of AVEs allows users to have more realistic virtual shopping experiences compared to traditional online retail.

Furthermore, AVEs are widely used for marketing communication to reinforce existing brand image. Brands can directly reach otherwise inaccessible consumers through the use of VR technologies. For instance, brands can adopt CAVEs to create a pop-up store to capture consumers’ attention, providing an experience of a unique consumer experience (Cowan and Ketron, 2019). AVEs provide a fully immersive space and highly personal experience for consumers focused on enhancing consumer engagement (Pantano et al., 2022).

AVEs are now a global technology, used by a variety of industries. For example, eBay, the Australian fashion retailer Myer and Alibaba (specifically their “Buy +” platform) all implement AVE technologies (Wu et al., 2022). Consumers can use VR headsets to shop at home, immersing themselves in a simulation of physical shopping environments. Although most consumers of luxury fashion brands are still highly dependent on physical store services and human-to-human interaction, some luxury fashion brands such as Prada (Prada, 2020) have implemented VR retail and offer virtual shopping services. Luxury fashion brands, in addition, have implemented AVEs in their marketing communication for market launches and one-off events (Jung et al., 2021; Pantano et al., 2022). Dior, for instance, unveiled “Dior eyes,” a VR headset that offers users a behind-the-scenes experience of runway shows. Users can participate in the show by virtually observing models, designers and fashion outfits as if they were actually in attendance (Suryani et al., 2020).

2.2 Simulations

Simulations offer users realistic settings for virtual interactions with virtual objects, and typically supply a carefully curated experience (Cowan and Ketron, 2019). Simulations are often used for e-retail and offer users a virtual 3D (and often interactive) experience of actual products, differing from traditional e-commerce that relies on two-dimensional (2D) product images. Furthermore, simulations can be used for product visualization and customization services. Users can be involved in the product design process through the use of websites (VR software-based) and VR tools including headsets and screen projectors (VR hardware-based) (Altarteer and Charissis, 2019).

Brands including Dior have implemented VR software-based simulations. Dior launched a virtual boutique that simulates its physical store in Paris where customers can browse and interact with products using mobile devices and laptops (Duval, 2020). By contrast, VR hardware-based simulations are relatively uncommon due to the practical limitations of their implementation (i.e. consumers are relatively unlikely to own their own VR headsets at this time). However, the potential benefits of headset-based immersive experiences cannot be overstated. Altarteer and Charissis (2019) conducted an experiment in which users customize Louis Vuitton luggage bags in headset-based VR, on traditional screens, and using a high-definition projector to discuss the value of VR simulations in product customization. They found that the product customization feature in a 3D VR system (simulations) has a strong influence on the users’ perceived experience value in luxury brands’ online stores (Altarteer and Charissis, 2019).

2.3 Virtual worlds

VWs are virtual and computer-simulated environments. They are shared, simulated 3D spaces inhabited and constructed by users through the use of their virtual avatars (Cowan and Ketron, 2019). VWs may exist in the absence of immersive VR technologies, as in the case of social networks and video games in which users interact with VWs simulated on traditional screens. Users are immersed into the VWs by using mobile devices (e.g. phones and laptops) and video game consoles (e.g. PlayStation 5 Console). In contrast, VR games (e.g. Meta Quest 2) that require a VR headset do not belong to this category of VWs.

The current types of VWs can be further distinguished into two models, namely, social VWs (SVWs, including games like The Sims and Second Life) and gaming VWs (GVWs, including Monopoly and Genshin Impact). Paul et al. (2022) explained the characteristics of SVWs and GVWs: the former allows users under minimum constraints to determine their own experiences in the VW (for example, users might design or build a house in their VW depending on their preferences); the latter is characterized by predefined structures and quest-driven behaviors (for instance, users might explore their VW by following or completing a pre-determined mission).

Currently, luxury fashion brands use VWs by either collaborating with other social/gaming platforms or establishing their own VW. Burberry, for example, collaborated with the video game the Honor of Kings (a GVW) to design skins (i.e. outfits) for one of the game’s characters that players were able to purchase (Langer, 2021). Gucci and Bulgari also worked with ZEPETO (a SVW), offering virtual fashion items including hats, bags, shoes and outfits styled according to their iconic design (Ryder, 2022). Louis Vuitton released a game for their founder’s 200^th birthday (Wu, 2021). The game is available from the Apple App store and Google Play. In the game, players control an avatar and are tasked with collecting a total of 200 candles to complete the game.

3. Methodology

The methodology for this SLR is based on Xiao and Watson’s (2019) framework. This framework is used to address specific research questions by collecting as much information as is available on specific topics. A SLR ensures research rigor and minimizes bias in the identification of relevant literature (Xiao and Watson, 2019). Researchers adopted SLR methodology to research luxury fashion (Aleem et al., 2022) and VR shopping (Xi and Hamari, 2021). There is still no singular framework available for research of VR use in the context of luxury fashion directly.

3.1 Planning the review

The review plan includes first determining research questions and developing or validating the review protocol (Xiao and Watson, 2019). To avoid selecting too broad of a research question, this study narrowed down topics in luxury fashion and VR research to specific research questions (RQ1-RQ3). Researchers discussed the literature review protocol before conducting the review itself. To decrease the possibility of researcher bias in source selection and to increase the reliability of the review’s findings, the review established inclusion and exclusion criteria with which to judge sources.

3.2 Searching the literature

Multiple databases were selected and searched to ensure a comprehensive collection of relevant sources. The databases used include Emerald Insight and Scopus. These databases have been used by previous scholars for research on luxury fashion and cutting-edge technology (e.g. Aleem et al., 2022).

The databases were searched for keywords determined by the review’s research questions. The keyword search used the string “luxury AND fashion AND virtual reality AND VR” to identify sources at the intersection of luxury fashion and VR scholarship. The literature reviewed in this study includes English-language peer-reviewed journal articles, reports, doctoral theses, conference proceedings and book chapters. The search was narrowed by excluding sources published before 2011 since recent research offers up-to-date insights into the current use of VR in the luxury fashion industry. The researchers conducted this review between April and July 2022.

3.3 Inclusion and exclusion criteria and screening

A keyword search of Emerald Insight and Scopus for relevant research returned a total of 1,211 sources (720 sources from Scopus; 491 sources from Emerald Insight) (Figure 1). Next, two reviewers worked independently to review the titles and abstracts of these sources after removing duplicates returned by both databases (80 articles). In this process, the reviewers selected sources that addressed either cutting-edge technology or fashion to avoid missing relevant information. The 90 articles were selected and remained to apply a quality assessment (full text review).

Two reviewers performed parallel independent quality assessments to reduce personal bias. Both used the same criteria of inclusion and exclusion to determine which articles to select for full-text review. Articles were selected for inclusion if: (1) the article was relevant to fashion or luxury fashion (products, services, marketing communication or brand management); (2) the article was to one or more technical features of VR environments (Cowan and Ketron, 2019); or (3) the article simultaneously met Criteria (1) and (2). Researchers selected 90 articles to fully review based on these criteria. To address RQ3, these 90 articles were narrowed down to 41 that met Criteria (3), and articles meeting only Criteria (1) or (2) were discarded. At this stage, five more articles were identified through “backward reference” searches that met Criteria 3; these articles were included for full-text review. This study reviews all 46 articles meeting Criteria 3 for final, full-text analysis.

4. Overview of results

The final analysis of the literature in this study included publications from 2011 to 2022 (May). Most sources included for review were published after 2017 and show the rise of research in recent years (between 2021 and 2022) (Figure 2). These sources included 36 research papers, 7 conference papers and 3 book chapters. Publisher distribution analysis indicated that the International Journal of Retail and Distribution Management published most of the articles reviewed (six), followed by Fashion and Textiles (five) and the Journal of Business Research (three) (see Supplementary material Web Appendix 1). The sources relied on a variety of methods: 16 (34.78%) used quantitative research, 13 (28.26%) conducted qualitative research, 15 (32.60%) consisted of literature reviews and 2 (4.35%) integrate multiple research methodologies (Figure 3). Among the quantitative studies reviewed, the most widely used statistical technique was structural equation modeling (e.g. Partial least squares) (37.5%). In addition, 69.23% of the qualitative studies were used interviews (e.g. semi-structured and Zaltman Metaphor Elicitation Technique interviews).

A total of 112 authors and co-authors, from 23 different countries, contributed to the publication of 46 articles. The authors from the top two countries are the US and the UK, which have a total of 30 and 18, respectively. In terms of the distribution of authors by their universities, North Carolina State University had the highest affiliations (12) which contribute more to the VR application in the fashion industry than other affiliations. Supplementary material Web Appendices 2 and 3 provide additional details on the distribution of authors by country and affiliation.

VR-related devices examined in previous studies include VR headsets (i.e. HMDs) (Jung et al., 2021); monitors and projection systems (i.e. screen and HD projector) (Altarteer and Charissis, 2019); VR-related videos (Xue et al., 2020); fashion-related digital applications (Lau and Ki, 2021); game platforms (e.g. Sims 4) (Wu et al., 2022); 3D fashion design modeling software (i.e. CLO3D) (Han et al., 2022; Choi, 2022); 3D game engine software (e.g. Unity) (Ahn and Bae, 2020); 3D virtual retail software (e.g. Mockshop software) (Sina and Wu, 2019); website-based virtual wardrobes (Bang and Su, 2022) and virtual try-on systems (Qasem, 2021).

Previous researchers addressed or used a variety of theories to support their studies, including Gestalt Theory (Jung et al., 2021); the Technology Acceptance Model (Altarteer and Charissis, 2019); self-determination theory (Lau and Ki, 2021); self-presentation theory (Khelladi et al., 2021); the Stimuli–Organism–Response model (e.g. Jin et al., 2021; Sina and Wu, 2019); Fishbein’s attitude theory (Bang and Su, 2022); the Unified Theory of Acceptance and Use of Technology Two (Qasem, 2021) and flow theory (Sina and Wu, 2019).

5. Themes discussion

Researchers implemented a six-phase thematic analysis (Braun and Clarke, 2006) to code selected articles, aiming to group papers into thematic categories. A total of five themes were identified and described according to pre-existing research conventions in the literature and were identified through an analysis of the keywords, research aims, methodologies and findings of each source individually. This approach helped researchers summarize and explain key insights from large data sets and reports. This analysis revealed five areas of research: virtual luxury fashion consumption, VR in marketing communication, virtual try-on, VR retail (including virtual fashion retail spaces) and VWs (including customers’ virtual representation as avatars). The following sections discuss each theme in turn. The theme discussion involves their definitions, current practices and the primary findings of relevant prior research.

5.1 Virtual luxury fashion consumption

Virtual luxury fashion consumption refers to the process in which users purchase and use virtual items designed or sold by luxury brands in VEs (Joy et al., 2022). Given the growth of VR in the luxury fashion industry, many luxury brands are currently investing in this sector. Most scholars (Liu and Yuan, 2021; Khelladi et al., 2021; Joy et al., 2022) believe that Generation Z (those born between 1997 and 2012) are the main target customer.

Regarding the virtual luxury format, researchers (Joy et al., 2022) claimed that virtual luxury fashion consumption is not limited to the game world (Gucci collaborated with the gaming platform Roblox, offering consumers an opportunity to style their Roblox avatars by purchasing a virtual Gucci bag), but includes the production and sale of blockchain-based non-fungible tokens (NFTs) (e.g. the OpenSea NFT marketplace) and an AR-based digital fashion in smartphone applications for display on social media (consumers can purchase and wear virtual Gucci sneakers by using a phone app).

Research on virtual luxury fashion consumption has started to examine consumer motivation related to the purchase of entirely virtual products produced by luxury fashion brands (Khelladi et al., 2021) and discussed the development of virtual products as a novel opportunity for the luxury fashion industry (Choi, 2022).

To analyze consumer motivation, researchers primarily focus on factors that directly influence people to consume physical luxury goods to approximate how these factors overlap in the case of virtual luxury fashion consumption. Movarrei and Masoumzadeh (2021), for example, discussed the need for status, a purchase motivation for luxury shoppers who use physical luxury goods to demonstrate wealth and status or to seek attention. Their study revealed that consumers’ higher need for status positively impacts their perceived status from a virtual luxury product.

Meanwhile, virtual fashion has also been discussed in the context of its design, marketing, jurisdictional strategies and legitimation as a new product line (Särmäkari, 2021). Choi (2022) investigated virtual fashion product design in the case of 3D virtual simulation systems (e.g. CLO3D and Adobe After Effects) and focused on future opportunities for 3D virtual fashion products (for instance, the possibility that luxury fashion brands might sell virtual fashion garments for online game characters). In addition, Choi (2022) explained that virtual fashion does not exclusively depend on fashion designers’ perspectives, and that understanding consumers’ needs can help to persuade potential or existing customers to purchase virtual fashion products.

5.2 Virtual reality in marketing communication

VR allows luxury brands to implement their marketing and advertising practices in a new way online. The emerging practical applications of VR in marketing communications from luxury fashion brands are diverse, and include virtual runway shows (consumers can watch a realistic runway show at home) (Jung et al., 2021), using virtual influencers (brands hire avatars to be influencers) (Moustakas et al., 2020), exhibitions and museums (brands create virtual museums to deliver their heritage stories) (Martin and Vacca, 2018) and video games (brands build their virtual stores in the game world) (Klaus and Manthiou, 2020).

Luxury brands integrate VR technologies into their marketing communication strategies to improve customer perception of their brand’s value (Pantano et al., 2022). Researchers (Pantano et al., 2022; Pantano and Willems, 2022) believe that the COVID-19 pandemic prompted luxury fashion brands to implement virtual marketing and communications systems, and studies address the advantages of digital or virtual marketing for both brands and consumers.

Existing studies mainly investigated the consumer experience of virtual luxury fashion shows to understand how the application of VR technology might reshape consumer perception of luxury fashion (Harba, 2019). For instance, consumers, using VR hardware, consider virtual runway shows as a democratization practice that grants more individuals access to an otherwise exclusive experience (Jung et al., 2021). Klaus and Manthiou (2020) believe that luxury apparel brands stand to benefit from hosting VR-based runway shows in which consumers control avatars to guide their experience.

Meanwhile, Suryani et al. (2020) examined VR fashion shows with a focus on consumer experience. These researchers collected user feedback on Dior’s VR fashion show to identify and analyse key contributing factors (e.g. music and interaction between users) to consumers’ experiences. Ahn and Bae (2020) confirmed the importance of background music, visual effects, an established point-of-view for users, and physical cloth is simulated on 3D models for experiences of virtual runway shows.

5.3 Virtual try-on technologies

Virtual try-on, a breakthrough for luxury apparel retailers, is a cross-application of VR and AR in retail service. Virtual try-on allows consumers to use smartphone and website applications, or AR mirrors in brick-and-mortar stores, to visually simulate the appearance of luxury fashion products on or with their bodies (Lee et al., 2020a).

Researchers use different terms to identify virtual try-on based on the primary technologies each type implements. For instance, smartphone applications that allow users to virtual try-on outfits (e.g. the Gucci AR Snapchat filter discussed by Stancescu et al., 2022) have been called “virtual fitting rooms,” “virtual try-on apps” or “magic mirrors” by Lee et al. (2021), Kazmi et al. (2021) and El-Shamandi Ahmed et al. (2023). Similarly, Qasem (2021) and Lee et al. (2020a) addressed the use of websites and standalone mobile applications for this type of augmented reality using the term “virtual fitting room.”

Often, virtual try-on applications are used to augment e-retail experiences by offering consumers the opportunity to (virtually) wear and customize fashion items on an avatar or in a simulated environment. Studies also addressed the potential audiences for virtual try-on services (i.e. who uses these applications), user motivations for using virtual try-on applications, and perceived benefits of these technologies.

Researchers tend to agree that younger consumers (Gen Z) are an ideal target for virtual try-on technology (Bang and Su, 2022). VR try-on technologies have the potential to reduce purchase risk for consumers and enhance their experiences of online fashion retail (Lee et al., 2020a). Lee et al. (2020b) noted that young luxury fashion consumers (between 18 and 29 years of age) show a need for virtual fitting rooms experience when they purchase luxury products online. Similarly, Qasem (2021) showed that Gen Z have positive reactions to try-on technologies that offer more realistic images of consumers who wear the product as such applications allow consumers to perceive more product features (e.g. fit and color) compared to traditional static 2D images. The increased availability of product information in 3D virtual or augmented reality helps alleviate purchase concerns, especially in the case of ready-to-wear and beauty products (Lee et al., 2020b).

5.4 Virtual reality retail and virtual fashion retail spaces

VR retail (V-commerce) and virtual stores are seen as promising applications of VR that have the potential to revolutionize current consumption behavior by simulating a virtual, 3D store for customers. Virtual spaces allow consumers to experience brand products virtually, making digital shopping experiences more realistic and engaging (Xue et al., 2020). Researchers believe that the main benefit of a 3D virtual store, compared to a 2D website, is an increased sense of realism enhanced by users’ ability to “walk around” the virtual store, view virtual products from multiple angles and dynamically interact with the store as they could in a physical retail space (Stancescu et al., 2022; Sina and Wu, 2019).

The application of VR in retail contexts has been widely discussed by scholars, but Xi and Hamari (2021) note that the overlap between VR shopping and luxury fashion is underexplored. Some experiments (e.g. Lau and Lee, 2019) showed that VR retail improves consumers’ intent to purchase and offers a more interactive experience than traditional digital retail, while it is also true that VR retail in fashion is in its infancy and could not replace what e-commerce currently offers (Xue et al., 2020). Investigating consumers’ expectations of the VR fashion retail environment and understanding how to design virtual stores that enhance users’ shopping experience are important components of any study investigating the implementation of VR retail spaces in the luxury fashion industry.

While researching VR retail and luxury fashion, scholars offered participants experiences adjacent to VR shopping. Researchers analyzed the effects of watching VR shopping-related videos (Xue et al., 2020; Jin et al., 2021), using VR headsets to experience the simulated fashion stores (Park et al., 2018; Lau and Lee, 2019; Wu et al., 2019), and exploring virtual stores created in 3D modeling software (Han et al., 2022; Sina and Wu, 2019). Park et al. (2018), for instance, studied VR technology and store design by using SketchUp (a 3D modeling program) to create virtual apparel stores and allowing users to explore those stores using a VR headset.

Research on VR store design consists of two presentations, simulating a real-looking and unrealistic-looking (e.g. 3D animation-based) shopping environment. Both simulating shopping environments can be delivered by either VR hardware (e.g. VR headset) or VR software (e.g. website). Consumers, for example, could use VR headsets to fully immerse themselves in a simulated shopping environment that has the same appearance as physical stores (Xue et al., 2020) or to explore stores stylized according to 3D animation conventions (Lau and Lee, 2019). Consumers could also use their mobile devices to explore website-based virtual stores with realistic or unrealistic design conventions (Wu et al., 2022). Roberts and Grassi (2021) schematize the various layouts used for virtual fashion retail spaces. Importantly, however, fashion retailers (including luxury fashion brands) have been reticent to implement VR retail spaces due to the high investment cost and uncertain returns for that investment (Park et al., 2018; Toma, 2018).

5.5 Virtual worlds and user avatars

Luxury apparel brands are recently active in VWs, but increased involvement could afford brands the chance to directly develop their brand image in virtual space with their consumer base (Joy et al., 2022). Online VWs give brands the option to engage and connect with their consumers (and their avatars) to deliver a customer-centered, immersive and interactive experience (Zarantonello and Schmitt, 2022).

Luxury brands create such customer experience as they are committed to seeking a place and approach for their consumers to entertain, socialize and relax (Alexander, 2019). Researchers discuss how users style their avatars (with outfits, accessories or shoes) in VWs like Taobao Life (Lau and Ki, 2021); video games like Sim 4, Roblox or Decentraland (Wu et al., 2022); or websites like Fabricant (Särmäkari, 2021). Virtual fashion products in these VWs often use specific designs and logos associated with luxury fashion brands. In some VWs, users can manipulate their avatars to participate in social events, including luxury fashion shows or games (Klaus and Manthiou, 2020). Hence, scholars believe that users’ avatars are a key part of user experiences in VWs.

An avatar is a user’s representation in a VW; because avatars are often personalizable (i.e. users are usually able to alter the appearance of their avatar with virtual products) they garnered significant attention in the context of virtual fashion. Previous researchers (Shim and Lee, 2011) addressed the connections between user avatars and the display of virtual fashion goods. For example, a 3D virtual body can present the authenticity of fashion products better than 2D images, allowing consumers to reduce perceived risk when shopping online as 3D avatars are better able to convey visual information about fashion products than 2D images.

The avatar, however, now is linked with the purchase intention of luxury goods. McCain et al. (2018), for example, showed that manipulating a celebrity avatar, Kim Kardashian, to shop in a VW, did not impact users’ intent to purchase luxury goods in the physical world. The avatar is also associated with the concept of customization and co-creation (Lau and Ki, 2021; Choi, 2022). Relatedly, Makryniotis (2018) highlighted the role of customization in avatar creation, arguing that users are often motivated to style their avatars according to their own identities and fashion preferences. For example, Lau and Ki (2021) revealed that VR fashion apps’ customization features (e.g. Avatar customization) can fulfil their users’ need for autonomy which is found to be a significant antecedent for users’ purchase intention in the Taobao Life VW. In terms of co-creation, Särmäkari (2021) believed that styling an avatar is a prototypical example of co-creation design because the process involves both fashion brands and consumers. This type of co-creation facilitated by VR technology is known as part of Fashion 4.0 (i.e. the digital transformation of the fashion industry), which refers to the development of how fashion brands use technologies to create new customer experiences and grow their business online (Jin and Shin, 2021).

6. Conclusions and contributions

This study makes four major theoretical contributions to the literature on VR use in luxury fashion. First, whilst VR research in the context of luxury fashion has increased, it lacks a comprehensive literature review. To fill this gap in the existing literature, this study examined existing studies of VR in luxury fashion research, defined VR and its unique technical attributes accordingly and identified the applications and settings where VR is used within luxury fashion.

Second, to the best of the authors’ knowledge, this was the first study to examine literature on VR in the luxury fashion context through a SLR. While the practicality of using the SLR has been validated in various recent studies exploring cutting-edge technologies such as VR shopping (Xi and Hamari, 2021), there remains a noticeable dearth of SLR research focused on VR in the luxury fashion sector.

Third, by using a SLR approach, this paper helps scholars and brands better understand the application of cutting-edge VR technology in the luxury fashion industry. The findings of this study offer comprehensive results from the literature, showing the diversity of development in this emerging area and offering future researchers five themes to explore different VR applications in luxury fashion consumption.

Finally, the study extensively examined five key themes and explored their definitions, current practices and the primary findings of relevant prior research. This comprehensive analysis will help future scholars in navigating a specific VR typology in the luxury fashion practice. By consolidating various studies under each theme, researchers can pinpoint relevant literature and discern the interconnections between them.

Table 2 summarizes the finding conclusions and implications for five themes.

7. Future research recommendations and limitations

This study has examined current practical applications of VR technology and addressed research on the luxury fashion industry, suggesting that more research is required to understand the overlap of luxury fashion and VR technology. The findings of this research reveal several themes for future exploration, but new applications of VR technology in the luxury fashion industry are constantly under development. Investigating consumer experiences of VR is a relatively underexplored area, especially in the case of luxury fashion. It will be important for academic researchers in this field to constantly investigate the users’ experiences, and explore whether luxury brands can, or should, develop this technology further. To help the future researcher to engage with these themes, this study outlines several questions/objectives for future examinations, addressing each theme in turn (Table 3).

There are some limitations in this study. First, the keywords used for searching in this SLR were limited to the terms and certain VR-related articles might have been missed. Future researchers might benefit from searching the term “VR typology” (the categorizations of existing VR technology) to conduct a review of specific types of VR. Furthermore, although the databases used are inclusive academic databases, other research channels might catalogue relevant papers not included in Scopus and Emerald Insight. In addition, this literature review is limited to sources published between 2011 and 2022 (May) and VR research on luxury fashion contexts is constantly evolving. Some resources may have been published between the time this study was conducted and its publication. Second, this study is limited to a descriptive overview of the existing literature. Some SLRs provide a descriptive overview of the field by including the research impact of the sources reviewed. However, most articles reviewed by this study were recently published and have not been cited; this lack of citational data makes it difficult to show which papers were most influential in research on luxury fashion and VR technologies. Finally, this study only reviewed articles written in English, the researchers are aware that VR technology is also addressed by research in non-English journals articles and conference papers.

Figures

Figure 1.

The process of screening for inclusion and exclusion

Figure 2.

The number of reviewed sources published between 2011 and 2022

Figure 3.

Research design and method

Figure A1.

Distribution of authors’ country

Figure A2.

Distribution of authors’ affiliation

Table 1.

VR typologies, forms and applications in luxury brands

Typology	Forms	Devices	VR applications in luxury brands
Automated virtual environments (AVEs)	Cave automatic virtual environments (CAVEs)	A cube-shaped VR room, multiple projectors and loudspeakers	None
	Head-mounted displays (HMDs)	VR headset and data glove	Dior: runway show (Jung et al., 2021). Prada: VR shopping (Prada, 2020)
Simulations	VR hardware-based simulations	Screen and high-definition projector	Louis Vuitton: customized 3D luggage (Altarteer and Charissis, 2019)
	VR software-based simulations	Mobile devices (laptops and phones)	Dior: virtual online boutique that simulates a physical store (Duval, 2020)
Virtual worlds (VWs)	Social virtual worlds (SVWs)	Mobile devices (laptops and phones) and game consoles (e.g. PlayStation 5 and Nintendo Switch)	Gucci and Bulgari: collaboration with ZEPETO, a social media platform (Ryde, 2022)
	Gaming virtual worlds (GVWs)		Louis Vuitton: game app (Wu, 2021) Burberry: collaboration with the video game Honor of Kings (Langer, 2021)

Table 2.

Conclusions and implications

Conclusions	Implications
Virtual luxury fashion consumption Consumers purchase and use virtual items with luxury brands’ iconic designs in virtual environments	There is a significant transformation in how luxury fashion is produced, marketed and consumed in the digital age
VR in marketing communication VR allows luxury brands to market online in new ways	Luxury brands must prioritize understanding consumer preferences and optimizing virtual experiences
Virtual Try-On technologies Virtual try-on enables consumers to use smartphone apps and websites to visually simulate wearing luxury fashion products	Virtual try-on enhances consumer engagement online with an immersive and personalized shopping experience, particularly among younger consumers
VR retail and virtual fashion retail spaces VR retail and virtual stores are new online retail channels that simulate three-dimensional shopping environments	VR retail holds potential benefits for luxury brands, but it also presents challenges due to the high investment costs. Further research is necessary to determine whether this enhancement of consumer retail experiences is profitable
Virtual worlds and user avatars Virtual worlds allow luxury brands to engage with consumers through their avatars, offering immersive and interactive experiences	This space presents an opportunity for luxury brands to develop their identities, engage with consumers and co-create within virtual worlds

Table 3.

Future research questions and objectives

Theme	Research questions and objectives	Source
Virtual luxury fashion consumption	What motivates consumers to purchase virtual luxury fashion?	Movarrei and Masoumzadeh (2021)
	Do young consumers purchase more virtual than physical luxury products?	Joy et al. (2022)
	How can the luxury fashion industry effectively strategize to facilitate the coexistence of virtual and physical goods?	Joy et al. (2022)
VR in marketing communication	What are contributing factors to consumers’ adoption of VR technology as a channel for communicating with luxury fashion brands?	Pantano et al. (2022)
	What are the attitudes and opinions of luxury fashion consumers who digitally engage with virtual influencers?	Moustakas et al. (2020)
	Does luxury consumers' knowledge of VR influence their interpretation and engagement of VR experiences?	Jung et al. (2021)
Virtual Try-On technologies	What factors influence luxury fashion customers’ intention to use try-on technologies?	Qasem (2021)
	What are the characteristics of customers and customer segments who rely on virtual try-on technologies during online shopping?	Lee et al. (2020a)
VR retail and virtual fashion retail spaces	What are luxury fashion consumers’ responses to v-commerce interfaces developed in line?	Xue et al. (2020)
	What are luxury fashion consumers’ preferences for virtual shopping experience design (e.g. the codesign between users and retailers, virtual salespeople, interaction between users, store layout)?	Wu et al. (2022), Han et al. (2022), Toma (2018), Roberts and Grassi (2021)
	What motivates luxury fashion customers to use VR technology as part of their online shopping experience?	Lau and Lee (2019)
Virtual worlds and user avatars	How can luxury brands communicate brand image in virtual worlds?	Alexander (2019)
	Is avatar customization important to luxury fashion consumers?	Lau and Ki (2021)
	How will virtual worlds and avatars be used by brands in the future to communicate with, and sell to customers?	Joy et al. (2022)

Table A1.

Publisher representation in this review

Name of publisher	Count	%
International Journal of Retail and Distribution Management	6	13
Fashion and Textiles	5	11
Journal of Business Research	3	7
Journal of Fashion Marketing and Management	2	5
Journal of Service Management	2	5
International Journal of Information Management	2	5
Research Journal of Textile and Apparel	2	5
IGI Global	2	5
Fashion Practice	1	2
Communication Research Reports	1	2
International Journal of Technology Marketing	1	2
Fashion Theory	1	2
Journal of Retailing and Consumer Services	1	2
Human-centric Computing and Information Sciences	1	2
Virtual Reality	1	2
Journal of Services Marketing	1	2
International Review of Retail, Distribution and Consumer Research	1	2
Spanish Journal of Marketing – ESIC	1	2
Strategic Change	1	2
Sustainability	1	2
IEEE Access	1	2
14th Textile Bioengineering and Informatics Symposium Proceedings, TBIS 2021	1	2
ACM SIGGRAPH 2020 Posters, SIGGRAPH 2020	1	2
6th International Conference on Computing, Engineering, and Design, ICCED 2020	1	2
Emerald Publishing Limited	1	2
Proceedings of the 13th International Conference on Business Excellence 2019	1	2
IEEE International Conference on Technology Management, Operations and Decisions, ICTMOD 2021	1	2
Palgrave Macmillan	1	2
IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2021	1	2
International Conference on Cyber Security and Protection of Digital Services, Cyber Security 2020	1	2

Source: Table created by authors

Supplementary materials

The supplementary materials for this article can be found online.