Augmented Reality (AR): Technology that Transforms Shopping Experiences

Augmented reality (AR) technology has revolutionised the way consumers interact with e-commerce platforms. The ability to visualise products in a real-world context before making a purchase has not only improved user engagement but also significantly reduced uncertainty and product return rates.

The use of Augmented Reality (AR) is changing how people shop and connect with brands. According to a report by PR Newswire the worldwide market for Augmented Reality (AR) in the retail industry is projected to grow significantly. By the year 2028, it is estimated to reach a total value of USD 6736.2 million.

Factors Driving the Adoption of Augmented Reality

Here are the factors influencing people to use Augmented Reality (AR) for shopping:

• Improved Decision-Making: AR allows customers to view virtual 3D representations of products at scale and in their intended location. This visual aid simplifies decision-making, eliminating the need for manual measurements.
• Try-Before-You-Buy Experience: Augmented reality offers a "try-before-you-buy" digital experience. Shoppers can visualise products in real-time from the comfort of their homes, minimising the likelihood of product returns.
• Infinite Product Variety: With AR, stores can showcase a vast range of products, showing what is physically available. This provides customers with more options and choices.

AR Benefits to Businesses

The adoption of AR is fueled by the desire to enhance customer satisfaction, and the implementation can bring benefits for businesses such as:

1. Giving a Boost to Your Brand: AR sparks curiosity among users, motivating them to go deeper into brand experiences. Consumers who engage with AR functionalities during their online shopping journeys display a propensity to return for repeated interactions, fostering brand loyalty.
2. Enhancing User Engagement: AR provides an immersive and interactive shopping experience, capturing the user's attention and holding it for longer periods. This increased engagement can lead to higher conversion rates and sales.
3. Reducing Product Return Rates: One of the significant challenges in online shopping is the inability to physically interact with products. AR bridges this gap by allowing users to place virtual products in their own environments, helping them make more informed purchase decisions.

Insights from Theekit.com reveal that 61% of consumers express a preference for retailers offering AR experiences. This indicates a growing acceptance of this technology for shopping, emphasizing the importance for businesses to adapt to avoid being left behind.

Brands that Succeeded in Implementing Augmented Reality

IKEA Place App

The IKEA Place App is a prime example of AR's transformative impact on e-commerce. This app empowers users to visualise IKEA furniture in their homes before buying. Users can select from a vast catalogue of products, place them in their living spaces, and assess how each item fits and complements the surroundings.

The result is a shopping experience that is not only informative but also enjoyable. Customers can experiment with various furniture arrangements, colours, and sizes, ultimately choosing products that best suit their needs. By reducing the uncertainty associated with online furniture shopping, IKEA has witnessed increased sales and a boost in customer satisfaction.

Estée Lauder

The Estée Lauder AR app, known as the "Estée Lauder Virtual Beauty Advisor," is a groundbreaking application designed to transform how you experience beauty and cosmetics shopping. With this app, you can explore Estée Lauder's extensive range of makeup products in an entirely new way.

This innovative approach not only empowers customers to make more informed purchasing decisions but also adds an element of fun and convenience to the beauty shopping journey. Estée Lauder's integration of AR technology reflects its commitment to staying at the forefront of the beauty industry and providing customers with innovative tools to explore their extensive range of beauty products.

Burberry

Burberry is redefining luxury shopping with its creative use of augmented reality (AR). Burberry has introduced an immersive AR feature on its website to celebrate its iconic Lola bag. This revolutionary tool allows customers to scan their surroundings and place a true-to-scale 3D model of the Lola bag in real-life scenarios, providing a genuine sense of its size and aesthetic compatibility.

Whether users want to see how it complements their outfit or fits on a table alongside their belongings, this AR experience offers an in-store feel. But it doesn't stop at visuals – the AR viewer also allows for a 360-degree exploration of the bag's intricate details and craftsmanship, empowering customers to make informed purchasing decisions.

40% Higher Conversion Rates with AR

Incorporating 3D technologies into your online shopping platform can lead to a significant boost in conversion rates, potentially up to 40%, according to Theekit.com, and the adoption of this technology with more brands recognising its potential. As technology advances, we can expect even more innovative applications of AR in the online shopping world.

So, are you ready to embrace AR into your business?

Sources:

1. Estée Lauder launched an AR and AI-powered app to help users apply makeup
2. Burberry launches new augmented reality shopping tool to celebrate the Lola bag
3. 23 Augmented Reality Statistics You Should Know in 2023
4. Ar in Retail Market USD 6736.2 Million By 2028 With A CAGR of 20.0% - Valuates Reports