Dive Brief:
- Snapchat is teaming with luxury brands Chopard, Boss and Lancôme for a shoppable augmented reality experience called the Snapchat Winter Village, according to a company blog post.
- The Snapchat Winter Village includes three virtual boutiques customized for the participating brands. Within each experience, users can shop various products and complete their purchase through the brand’s e-commerce site.
- The village is available through Dec. 31 and was made with creative studio Atomic. The activation is meant to mimic the in-person shopping experience and arrives as cohorts including Gen Z indicate a preference for shopping at physical locations.
Dive Insight:
Snapchat is putting its own spin on the in-person shopping experience with its digital winter village. The experience could be a way for the platform to appeal to younger generations like Gen Z, 61% of whom now prefer to discover new products in store, according to holiday research from PwC. The cohort prefers in-person shopping for the ability to touch and see products, to experience holiday displays and to secure promotions.
The winter village attempts to replicate the best parts of in-person shopping, allowing consumers to explore branded boutiques and discover products up close using AR. Seventy-nine percent of Snapchat users say that AR helps them decide what they want, according to data shared in press details.
Consumers can access the activation through Snapchat’s Lens Carousel and each brand’s public profile. Within Chopard’s experience, consumers can browse displays featuring signature watches and jewelry, and interactive product cards highlight the story of each piece. Resembling a real-world boutique that has been crafted from paper, the virtual store features soft ivory textures throughout.
Lancôme’s area features a train-inspired fragrance experience where the Lancôme Express is reimagined above snowy mountains. The pink and gold carriage features various fragrances, including new offerings such as Vanille Nude and staples like La Vie Est Belle, with stories for each product revealed via AR.
Boss’ experience introduces what it bills as an Augmented Factory, a festive space with copper-toned accents and moving conveyor belts that highlight the Boss x Steiff collection. Parent Hugo Boss has made a stronger push to engage younger consumers recently, having debuted its denim-focused line on Roblox last year.
The Snapchat experience is an example of how luxury brands are adjusting their marketing playbooks to reach Gen Z, a generation whose interest in the category is growing. The cohort is expected to account for 25% of global luxury spending by 2030, according to Boston Consulting Group, up from 4% before the pandemic. Brands including Coach have also refined their strategies recently in a push toward younger consumers.
Consumers this holiday season are forecast to spend 10% less over 2024, according to Deloitte. Gen Z is expected to lead the spending pullback at 34%, putting additional pressure on brands to craft an intentional strategy if they wish to resonate with the generation.
Snapchat’s activation is available in the U.S., UK, Middle East, Germany, the Nordics, France and Benelux. Parent company Snap reported a revenue increase of 10% year over year in the third quarter, according to an earnings statement. Daily active users increased 8% year over year to 477 million.
