Augmented reality and sustainable luxury: transforming fashion retail in the UAE

PurposeThis study aims to explore the potential of augmented reality (AR) in luxury retail in the United Arab Emirates (UAE) in terms of enhancing consumer engagement, purchase confidence and sustainability awareness. It also focuses on the demographic factors that affect the adoption of AR and to what extent it may promote sustainable consumption of fashion.Design/methodology/approachA quantitative method using partial least squares structural equation modeling and multi-group analysis is employed to examine AR adoption and its impact on consumer behavior. Age demographics, gender, educational attainment and income are tested as moderators of AR-based sustainable fashion decisions.FindingsAR significantly enhances consumer confidence, reduces product return rates and builds trust in sustainable fashion. Younger, tech-savvy consumers have higher engagement, while artificial intelligence (AI)-powered AR solutions, such as virtual try-ons and sustainability transparency tools, foster ethical fashion awareness. AR adoption rate disparities persist among demographics, requiring tailored engagement strategies.Practical implicationsPolicymakers, retailers and technology developers have strategic learnings from the research. It emphasizes the requirement for hybrid retail models, AI-driven personalization and regulatory intervention to combat greenwashing and establish sustainability standards.Originality/valueUnlike more general studies on AR in digital retail, this one provides region-specific insight on its function in sustainable luxury fashion. Emphasizing rich areas like the UAE, it describes luxury retail as unique, premium and technologically forward. Following how AR interacts with consumer behavior and sustainability in line with Sustainable Development Goals 12 and 13 helps to add to knowledge.