Especially since the beginning of the COVID-19 pandemic, online shopping has become more prevalent now than ever. According to Digital Commerce 360 estimates, consumers spent $861.12 billion online with U.S. merchants in 2020, an increase of 44% from the prior year. Unable to go to stores in person, the new normal has become scrolling through store websites, paying online, and having purchases delivered to your front doorstep or through curbside pickup. Either way, the present process of shopping has essentially become contactless. Although, this comes with a major implication; consumers are unable to try on clothing, accessories, makeup, etc. With having the ability to try products before buying them out of reach, consumers are rightfully wary and cautious while online shopping and spending their money. Because of both the surge in online shopping, and the demand for a close to authentic shopping experience from consumers, more and more companies are implementing a new & powerful technology; augmented reality. Augmented reality, or AR, is the use of digital visual elements, sounds, etc. to enhance the real physical world. An outstanding example of augmented reality would be Snapchat filters, making it extremely easy to put dog ears, sunglasses, etc. on one’s face while taking a selfie! Snapchat is one of the many ways we are able to use augmented reality, but how is AR seeping its way into retail?
Sephora, one of the biggest beauty/makeup retailers on the market and multi-million dollar company, has implemented AR into the way in which online consumers purchase makeup products. “Virtual Artist” is a beauty app created by Sephora which allows users to try on blush shades, lipsticks, foundations….without actually trying them on! The app leverages the concept of facial recognition, which is able to accurately detect where facial features such as the nose, lips, eyes, etc. are after being trained through many rounds of precision testing. The augmented reality technology then allows the user to move in real-time with the makeup digitally applied to their face (which is detected by the facial recognition feature), giving the consumer a regular in-store experience through their phone! Although, Sephora is not the only retail brand that has taken it to the next level in terms of tech. Home Depot, the home improvement retailer on the opposite spectrum from Sephora, has also added augmented reality technologies to its app.
Home Depot’s AR feature allows users to select a product from their app, scan a room with their phone and pick a spot for their item, and see how that product looks, feels, and fits in their home. Similarly, Ikea has also implemented a similar AR feature, where customers can view 3-D renderings of over 2,000 products from different angles before purchasing. Both Home Depot & Ikea directly link the augmented reality feature to the actual product, so users can make the purchase with one easy click of a button. Nike, the multinational footwear company, has also made strides in adding AR features to improve the consumer experience. Just last year, Nike unveiled their new AR solution called “Nike Fit”, giving users the ability to accurately measure their foot to find out their shoe size by simply scanning their foot using their phone camera. These companies are just a few examples of the many that are starting to implement AR technology, but it is safe to say that AR is changing the way in which retail business is conducted, and opening the door to brighter opportunities.
It’s clear to see that retailers are joining in the race to add AR features to the consumer experience, but are any of them reaping the benefits? The answer is yes! Retailers have seen conversion rates (the amount of people visiting the app/website making a purchase) increase since the implementation of AR. Home Depot found that “consumers who engage with Home Depot’s augmented reality feature typically convert two- to three-times higher than those who don’t use it.” Although, Home Depot isn’t the only retailer that has seen an increase in engagement and profit since the introduction of AR. According to data from Vertebrae, retailers who have implemented AR have seen a 20% increase in engagement, and conversion rates have increased by 90% since 2020. It is apparent that augmented reality holds a plethora of opportunities for not only retailers, but also consumers. So the next time you engage in online shopping, make sure to keep an eye out for these incredible AR features!
Authored By Surbhi Kumar
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