Over the next ten years, augmented reality technology will enter our daily lives in ways we cannot imagine. In retail in particular, consumers are demanding better purchases and using augmented reality apps like the Ikea Place app to help them make better purchasing decisions. Houzz also reports that more than two million people use AR when purchasing products on the Houzz app, and people who view the tool are 11 times more likely to buy.
AR offers a compelling way to tackle online and offline shopping. With AR, for example, customers can virtually try products such as shoes, clothes, sunglasses or cosmetics in order to shop comfortably from home. In other cases, AR can make in-store displays more interactive and engaging, creating more brand loyalty and awareness.
Augmented Reality Market Statistics
Goldman Sachs predicts the AR and VR retail market alone will reach $ 1.6 billion by 2025. A Gartner study reports that by 2020, 46% of retailers will use VR or AR to meet customer needs.
Augmented Reality (AR) and Virtual Reality (VR) can shake up the customer experience by customizing retailer offerings and allowing customers to visualize products in a variety of environments. By 2020, 100 million consumers will shop with AR online and in-store.
According to Forbes:
Fully immersive VR is great for telling brand stories or conveying a lifestyle, or for bringing to life a pure digital experience. Ultimately, however, retailers are selling physical goods, and the digital development of these physical environments and products in those environments will provide real benefits to the retail industry.
The XR 2020 Industry Insights Report produced by VR Intelligence said that 65% of surveyed AR companies said they worked on industrial applications, while only 37% worked on consumer products and software.
With 2.4 billion smartphone users worldwide, it’s easy to see why companies are trying to bring mobile to retail, according to Mobile Marketing Magazine. However, the statistics only go beyond the spread of cell phones. Statistics from retail perceptions show that 61% of shoppers prefer a store that offers an augmented reality experience, 71% will return more often, and will pay 40% more for a product if they can try it in AR.
Research from USA AR Retail reveals the most popular sectors in AR retail:
60% – furniture
55% – clothes
39% – food and drink
35% – shoes
25% – cosmetics
25% – jewelry
22% – toys
Benefits of Augmented Reality in Retail
Customer Experience
Users can have a virtual experience in as many variations as are available for a given section in a matter of minutes, completely avoiding waiting. These technologies not only provide great customer experience, but they also help businesses in unexpected ways, such as when you find that using more of these virtual technologies dramatically reduces offline attacks.
Customer Retention
This technology achieves engagement and interactivity goals for customers, provides them with a memorable experience, pleasant goodbye sales, and increases the chances of returning customers. This leads to higher returns for the company.
Increase Sales
According to a survey of 72% of customers, they buy products impulsively because of their augmented reality experiences. Whether it’s a store experience or personal augmented reality, customers are always looking for new forms of entertainment and augmented reality is the best solution. With this new and much sought after technology, you will attract more customers by expanding your sales funnel.
Physical Store Enhancement
After all, people love physical objects, and online shopping can never replace the customer experience in a physical store. However, researchers predict that after COVID, many people will choose to shop online rather than visit a physical store.
Now is a good time for retailers to devote some resources to “keeping” visitors and keeping them coming back. Retail AR is the best way to do this because it’s something new that consumers want to experience.
Future of Augmented Reality
Experts predict the AR / VR industry will reach more than $ 25 billion by 2025 – and growth will continue. This is a bright future for Augmented Reality and is defined by investments from the following businesses and areas that find its practical potential very attractive.
In short, there are various reasons why companies around the world are using this AR / VR technology, both to investigate the long-term benefits of introducing it into the system and to gain a competitive advantage in order to reach the market. Hence, the wait for their adoption must end immediately because it cannot be denied that AR / VR is the future of retail.