Driven by the growing adoption of smartphones and tablets, the global mobile augmented reality market will reach $ 79 billion in five years. The amazing success of Pokemon Go paved the way for new AR applications and proved that the potential of technology extends well beyond entertainment.
Retail is one of the industries experiencing the AR boom right now. From employee training to augmented reality shopping, here's how Mobile AR transforms brick and mortar stores.
Augmented reality retail sales: profits become real
Augmented Reality – an advanced technology that integrates computer-generated images into the user's environment and live video content – has existed for two decades.
In 2013, IKEA became one of the first brands to create an AR mobile app that allowed customers to virtually furnish their apartments with the latest catalog items and share improved photos on social networks. The Converse, Lego and Uniqlo AR applications followed.
Yihaodian, one of the largest online grocery companies in China, even installed several AR stores in empty urban spaces; customers could walk along the virtual aisles with their smartphones, place orders and have goods delivered to their homes!
But these are the exceptions rather than the rule: this year, however, is the moment when our wildest dreams can finally come true. While e-commerce sales continue to grow (in 2016, online sales accounted for 11.7% of purchases made by US customers), physical stores are looking for new ways to deliver an ultimate shopping experience and engage in digital transformation projects.
Augmented Reality is the most promising technology for retail businesses. Here is the proof:
- Users know and love AR. According to the recent Interactions Consumer Experience Marketing study, 34% of US consumers are already turning to AR apps while shopping, and nearly half of them are enjoying this experience. The same survey also revealed that 71% of customers shop at a retailer who used the new technology.
In addition, 72% of buyers say they bought items that they had never planned to buy … because of augmented reality! AR has the power to educate, engage and motivate users; Why not enjoy it? - Compared to virtual reality, augmented reality has a lower entry barrier. While the price of a decent virtual reality headset ranges from $ 75 to $ 799, the augmented reality content looks great on mobile. FYI, the number of smartphones out there will exceed 2.5 billion units next year.
According to Pavel Shylenok, CTO at R-Style Lab, it's the high cost of HQ 3D content (and its lack!), As well as limited control options and 2D user interfaces that prevent the shopping apps from virtual reality to be en masse. With AR, developers have a plethora of open-source tools (ARCore, ARToolKit, ARKit, etc.) to design high-end mobile and desktop applications. More than 90% of US customers already use smartphones when shopping. work with what you have! - AR helps brands create memorable customer experiences. Tech-savvy retailers like IKEA, Target, Tesco and New Look are using augmented reality applications to give customers more information about their goods and services, turn smartphones into mirrors for what they do. Virtually Try Clothes and Makeup and Create Custom-Based Offers
Augmented Reality bridges the gap between traditional shopping and online shopping – and that's exactly what the future will look like from retail! - AR applications have higher engagement rates than traditional commercial applications. Although retail apps convert 20% better than merchant sites, few retail companies are able to persuade their customers to download their apps and use them on a regular basis. In fact, 49% of customers only launch retail apps to search for discounts and special offers!
What about AR applications? New Look, one of the UK's largest retailers, has launched an Augmented Reality app aimed at UAE students; Customers could scan their New Look loyalty card for promotional and interactive content, including the "Create a new look" virtual creator.
Per session, the average user spent up to 7 minutes in the application (compared to 3 minutes spent in -AR applications). Investing in retail technology is the only way to engage difficult customers – especially the Millennials and Centennials who have officially overtaken the baby boomers as the biggest hand-in-hand. American purchasing power and power; - Augmented reality increases sales. While 40% of US consumers are willing to spend more on a product if they are allowed to test it using Augmented Reality, investments in VR / AR software and gadgets are expected to reach $ 30 billion by 2020. Is the game really worth the candle?
Hidden Creative, a Manchester-based marketing agency, recently conducted empirical research to test the effectiveness of traditional and AR advertising campaigns. They discovered that customers were 29% more likely to buy the product (a kid 's toy) for a higher price after interacting with a sample advertisement Augmented Reality! AR offers a whole new way of presenting products; surprise your customers – and they will be forgiven for you!
Augmented Reality is, of course, one of the many technologies that transform shopping. Macy's has turned to the beacons to boost sales during the 2015 holiday season and has increased its use of the 1600% app. Other brands combine inexpensive RFID tags with product packaging to track goods through supply chains or turn to artificial intelligence to get gigabytes of sensor data and better understand the behavior of the customers.
What about your company? Do you believe that new technology (AR in particular!) Is the future of retail?