High fashion is a highly tangible art. In some ways, it hasn’t changed much in the last century, only being available to a narrow few. However, as e-commerce use grows amongst fashion consumers, how can trend-setting fashion brands get ahead of the curve? Forward-thinking brands and retailers are beginning to explore new possibilities, including AR.
While some view AR fashion as mere fun or impractical, akin to social media filters, or as not meeting high standards due to early, less sophisticated attempts, the reality is quite different.
Today's AR fashion is rapidly evolving, offering high-quality try-on experiences that result in tangible business outcomes.
- Purchasing real items online: AR try-on is revolutionizing the online shopping experience. It addresses a critical need: 79% of consumers prefer trying on clothes before purchasing. According to Rebecca Minkoff, 3D integration makes customers 44% more likely to complete a purchase. With 90% of respondents stating that AR will be most useful when buying clothing online: by integrating AR into e-commerce, customers can make more informed choices about fit, size, and style, reducing the necessity of physical store visits. As reported by AR Insider, virtual try-ons significantly boost sales metrics and decrease return rates, addressing a $500 billion annual challenge posed by product returns.
- Purchasing real items offline: Post-pandemic, retailers face the challenge of attracting customers back to physical stores. Here, AR mirrors play a vital role. Installed inside or outside stores, they enhance customer attraction and enable sales, even when items are out of stock. This innovation allows customers to try on 3D models and pre-order, thereby increasing sales and reducing lost revenue.
- Purchasing digital-only items: The rise of digital-only fashion items, like player skins in games such as Fortnite, showcases a new avenue for fashion brands. Platforms like Roblox offer both new distribution channels and opportunities for consumer engagement. This digital-only fashion provides unique ways for users to express themselves in online and gaming environments. [Check out our NFT Series.]
- Fashion design and prototyping: Digital fashion enables influencers, content creators, and social media users to try on any outfit virtually. This not only facilitates content creation but also fosters discussions around fashion trends and designers in a sustainable manner.
- Fun: AR fashion also brings a fun, sustainable element to clothing. For instance, trying on digital Halloween costumes helps avoid the environmental impact of real costumes, which are often made from non-recyclable materials.
Benefits of AR in Fashion Retail
With various innovative tools emerging, AR in fashion is already helping trend-setting brands to generate additional value.
- Personalization: 75% of U.S. consumers consider personalization crucial, AR allows them to visualize clothing tailored to their unique style and body shape.
- Engagement: AR can significantly extend customer engagement time. Data show that AR can keep customers engaged 2.7 times longer than traditional methods, fostering higher conversion rates and repeat business.
- Conversions: Despite the average online fashion store's conversion rate being a mere 1.8%, AR has the potential to bridge the gap with in-store conversion rates, which stand at 20-40%. With 62% of users reporting that virtual try-ons encouraged them to make a purchase, AR is a game-changer.
- Reducing Returns: AR try-on solutions address a significant challenge in online fashion retail - returns due to poor fit or style. McKinsey reports that 70% of fashion returns are due to these reasons, a problem exacerbated in the e-commerce space. AR can significantly reduce returns, contributing to sustainability by minimizing carbon footprint and sample production.
- Loyalty: Implementing AR can enhance the customer journey, leading to greater brand loyalty. Studies indicate that 70% of customers are more likely to be loyal to brands offering AR-enhanced experiences.
Only 1% of retailers currently use immersive technologies to enhance customer experience. However, with return rates rising as shopping shifts online, leading brands are adopting AR tools to address customer journey pain points.
With 40% of US Gen Z and Millennials already using AR in retail, it's becoming an expectation among young consumers. Brands that embrace this technology will benefit from increased conversions, fewer returns, and stronger brand loyalty.
The market for virtual fitting rooms is projected to grow from $2.97 billion in 2020 to $12.97 billion in 2028. This rapid growth signifies a burgeoning opportunity and escalating competitive pressure among AR try-on providers, further driving the evolution of AR to meet the needs of this lucrative vertical.
If you're looking to stay ahead in this rapidly evolving landscape, embracing AR technology is key.
Book a demo with us to explore how AR can revolutionize your customer experience, boost your sales, and create a lasting impact in the world of fashion.
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