The retail sector has emerged as a frontrunner in digital transformation investments in recent years. It is a domain that swiftly integrates technological innovations across various fronts, including logistics, storage, marketing, and customer service.
Augmented reality has been around for a while and is now transforming the retail industry's client perspective and shopping experience. AR technology is rapidly shifting towards providing real value to customers rather than being used only for PR campaigns.
AR has evolved into a powerful technology with significant real-world applications, particularly in the retail industry. It allows retailers to create immersive, interactive experiences that engage customers in new and exciting ways. Customers can virtually "try on" products, visualize how items would look in their homes, and get a better sense of scale and fit before purchasing. This can lead to higher customer satisfaction, fewer returns, and increased sales. Read on to learn more about how AR transforms the retail market!
What Is Augmented Reality?
Augmented reality is a technology that enhances the real world by adding real-time digital content to physical objects. When a user points their camera-equipped device at an object, the built-in AR software uses a combination of depth tracking and computer vision to analyze the video stream, recognize the object, and overlay digital content on top of it.
As users shift their camera, the size and orientation of the AR display move automatically with it, creating an exciting and immersive digital experience. This technology has been around for years, with examples like Snapchat's dog filter. Still, it has recently become a powerful tool for brick-and-mortar businesses and direct-to-consumer brands.
By bridging the physical and digital worlds, retailers are thoughtfully elevating customer experiences and unlocking new ways for consumers to interact with products. Such integration allows customers to visualize products in their environments, reducing uncertainty and increasing the likelihood of a purchase.
Moreover, AR in retail can provide valuable insights and data to retailers, helping them better understand customer behavior and preferences. The information can then be used to optimize product offerings, marketing strategies, and overall business operations.
As consumer expectations continue to evolve, the adoption of augmented reality in the retail industry grows. Businesses that embrace this technology will be well-positioned to deliver engaging, personalized experiences that drive customer satisfaction and sales.
Why Is AR In Retail and eCommerce?
Besides using augmented reality in advertising, we can see how it transforms other industries. One of the examples is eCommerce, where augmented reality empowers customers to preview products or experience services in their environment and on their own time before purchasing. By leveraging the power of AR, online retailers can help customers make more informed decisions and reduce the likelihood of returns. Let’s see why AR in retail and eCommerce is so popular.
One of the critical benefits of AR in retail and eCommerce is the ability to offer virtual try-on experiences. Such experience addresses the common challenge of "it looked great on the mannequin" - where an item may not suit the customer as expected. AR-powered virtual try-on solutions for clothing, makeup, accessories, and even eyeglasses allow customers to visualize how products will look on them, increasing their confidence in purchasing.
Another powerful application of AR in retail and eCommerce is the ability to preview how a product will look in the customer's environment. It can be particularly useful for furniture, electronics, and other large items, where it can be challenging to gauge the accurate scale and fit based on online images alone. AR preview placement tools allow customers to see true-to-scale 3D models of products in their own living spaces.
AR in retail can also be leveraged to create interactive user manuals for products with a learning curve. These manuals respond to user actions, providing on-page contextual support and guidance on using the product effectively. By scanning the physical product, the AR manual can highlight buttons, provide step-by-step instructions, and offer visual cues to help new customers get up to speed.
Augmented reality has also found a home in social media with the rise of AR filters on platforms like Instagram and Snapchat. These filters allow customers to try new products, showcasing how they will look virtually. It engages the audience and encourages user-generated content and brand awareness.
Using augmented reality, eCommerce businesses can enhance the customer experience, increase conversion rates, and reduce the likelihood of returns. As the technology continues to evolve, integrating AR into online shopping will become increasingly essential for retailers looking to stay ahead of the competition and meet their customers' evolving expectations.
Benefits of Augmented Reality in Retail
Augmented reality is revolutionizing the retail industry. It offers a range of benefits that transform the customer experience and drive business success. Here, we have collected some of the most essential benefits of augmented reality for retail businesses.
Customer engagement and experiential retail. As retailers emphasize in-person experiences, many brands are leveraging augmented reality to create immersive shopping experiences that drive engagement, increase customer education, and spark curiosity among shoppers. For example, Starbucks brought customers on a virtual journey of a coffee bean, allowing them to witness the transformation from roasting to the final product.
Sales and conversion lifts. Augmented reality can significantly impact in-store and online conversion rates, making a meaningful difference in a retailer's bottom line. According to Shopify's internal data, merchants who add 3D content to their stores see an average conversion lift of 94%.
Contactless experiences. As eCommerce evolves and consumers become more comfortable shopping online, augmented reality can replace the need for physical interaction with products. Users can virtually evaluate photo-realistic representations and view products from different angles, saving time and effort while reducing the need for in-person contact.
Shareable and trackable content. AR-powered filters, displays, and applications are powerful organic marketing tools that engage customers. Ulta Beauty's shoppable AR filters on Snapchat, for example, allow users to try makeup virtually and share the results with friends while providing valuable data and insights to the brand.
Virtual shopping and navigation. Augmented reality enables consumers to overlay digital clothing, images, and accessories directly onto their bodies in real time, enabling virtual try-on experiences. AR navigation systems can also guide shoppers through brick-and-mortar augmented retail environments, providing additional information about physical products.
In-store displays and virtual fitting rooms. Augmented reality windows and digital in-store displays can engage prospective shoppers, drive brand awareness, and provide valuable analytics. Virtual fitting rooms allow customers to try on items without physically touching them, increasing conversion and reducing returns.
As technology advances, augmented reality becomes a retail essential, transitioning from a "nice-to-have" to a critical component of successful customer experiences and business strategies. By leveraging AR's transformative power, retailers can enhance engagement, boost sales, and stay ahead of the competition.
Examples of Augmented Reality in Retail
In today's retail landscape, augmented reality has emerged as a game-changing technology that breaks the boundaries of traditional shopping experiences. Innovative and transformative AR solutions have led to more and more retailers embracing this powerful technology. Let’s see some of the most exciting examples.
IKEA Kreativ
IKEA, the renowned furniture retailer, has taken a significant step forward in enhancing the customer experience with the introduction of IKEA Kreativ. This innovative solution leverages advanced augmented reality technology to make furniture shopping effortless.
Seamless room scanning
At the heart of IKEA Kreativ is the ability to create a complete 3D replica of a customer's room. By utilizing the LiDAR technology integrated into iPhones, customers can quickly scan their living spaces with just a few taps. This precise scanning eliminates manual measurements, providing a detailed digital representation of the room.
Visualizing new furniture
Once the room scan is complete, customers can explore IKEA's extensive furniture collection and virtually place new items in their space. This feature offers a true-to-life visual representation of how the furniture will look and fit within the customer's existing decor, taking the guesswork out of the shopping experience.
Hassle-free redesign
IKEA Kreativ empowers customers to redesign their living spaces effortlessly. By removing their furniture and experimenting with new products, customers can visualize the transformation without needing physical measurements or trial-and-error. Its convenience and precision streamline the furniture shopping process, making it easier than ever for customers to find the perfect pieces for their homes.
IKEA Kreativ provides customers with a seamless, hassle-free way to visualize and plan their dream living spaces, ultimately enhancing their overall satisfaction and confidence in their purchases. As the retail landscape continues to evolve, innovative solutions like IKEA Kreativ demonstrate the transformative potential of AR in creating exceptional customer experiences.
Toyota's Car Customization
Historically, the car accessory shopping experience has been fraught with challenges for customers and dealerships. Shoppers have frequently voiced dissatisfaction with the scarcity of point-of-purchase materials and limited accessory choices. Dealerships, however, have often lacked effective visual aids and up-to-date information to showcase their available accessories.
To address these pain points, Toyota has embraced the power of augmented reality to revolutionize the car customization experience.
Seamless accessory visualization
Toyota's AR application leverages advanced technologies, including machine learning and Apple's ARKit, to provide customers with a seamless and intuitive accessory shopping experience. The app allows users to recognize their vehicle through the camera system effortlessly and then virtually add computer-generated accessories without needing markers or physical images on the car.
Immersive and user-friendly
This AR-powered solution offers a more immersive and user-friendly approach to car accessory shopping. Customers can now visualize how different vehicle accessories would look, empowering them to make more informed purchasing decisions. Eliminating reliance on physical brochures or outdated website images enhances the overall experience, making it easier for customers to explore and customize their cars.
Using augmented reality, Toyota has bridged the gap between the physical and digital realms of car accessory shopping. Customers can now enjoy a more interactive and engaging experience, while dealerships can provide a more comprehensive and up-to-date showcase of their available accessories.
Amazon's Virtual Try-On
