Not only luxury brands, but also fast fashion brands such as ZARA and H&M have successfully opened flagship stores in prime locations such as Ginza, Tokyo. The market-entry strategy via flagship stores appears to be successful, as numerous companies have adopted it. However, for this strategy to work, it is important to consider and verify not only the place, but also the product, price, and promotion aspects. This study systematically investigates the flagship store strategy by comparing the strategies of luxury brands, represented by Chanel and Louis Vuitton, and those of SPA (Specialty store retailer of Private label Apparel) brands, represented by ZARA, developed by the Spanish Inditex Corporation.

Luxury retailers are said to be leading the way with investment in instore technology (Patel 2013). As consumer decision making has shifted from the rational to the emotional and experiential (Kim et al., 2009), luxury fashion retailers are increasingly investing in experiential retailing to provide a differentiated retail experience and encourage consumers to dwell and consume. However, although academic research has identified the increasingly important role of technology in consumers’ lives (Gilmore and Pine, 2002; Kim et al., 2009; Srinivasan and Srivastava, 2010), there is a lack of research on technology implementation in the luxury context; on how it could be conceived and what beneficial effects it would have on the shopping experience. The aim of this research to explore the adoption of in-store technology within the luxury retail store environment with respect to the motives and methods employed. Motives include the proliferation of e-commerce, the showrooming concept, to increase dwell time and spend instore, to enhance the level of interaction with customers and also that in-store technology can be a PR generator. There are three main methods that luxury brands have been using technology in their flagship stores and these are functional, inspirational and experiential.