Unlocking the Power of Augmented Reality for Retail Success: Insights from Industry Leaders
The Rise of Augmented Reality in Retail: How AR is Transforming the Shopping Experience for Gen-Z Consumers
With Gen-Z accounting for 25 percent of the global population and over half of the global workforce, it’s no surprise that this tech-savvy generation is driving the demand for innovative digital experiences. According to research conducted by Deloitte, by 2025, 75 percent of the global population and almost all smartphone users, including the majority of Gen-Z, will be frequent users of augmented reality (AR).
AR technology is already reshaping customer interactions and experiences, offering new digital product lines, 3D fit solutions, and immersive experiences. Social media platforms have become a seamless gateway for users to engage with AR through filters and lenses, blurring the lines between physical and digital activations.
However, amidst this technological evolution, the global financial outlook remains challenging. The McKinsey Pulse Survey found that consumers are becoming more cautious with their spending, opting for lower-priced retailers or seeking savvier retail experiences. In response, retailers must focus on enhancing the path to purchase by investing in innovations that surprise and delight customers while driving bottom-line results.
One area where AR technology is making a significant impact is in reducing return rates for retailers. Returns represent a loss of $550 billion worldwide and have a substantial environmental cost. By implementing AR and fit guidance technology, retailers can provide shoppers with a more accurate representation of products, leading to fewer returns. In fact, studies show that 66 percent of e-tailers have experienced a decrease in returns after implementing AR technology.
To capitalize on the opportunities presented by AR, Snap recently launched Ares, a SaaS service that combines Snap’s AR technology with expertise gained from acquisitions of companies like Vertebrae, Fit Analytics, and Forma. Ares’ Shopping Suite includes features like 3D Viewer, AR Try-On, and Fit Finder, which can be integrated into retailers’ apps and websites.
To delve deeper into how AR is revolutionizing the shopping experience, Snap’s head of AR enterprise services, Jill Popelka, and global head of luxury, Geoffrey Perez, recently hosted a roundtable discussion in Paris. Executives from top brands like Louis Vuitton, Jacquemus, and Christian Louboutin shared insights on leveraging AR to enhance customer engagement, gamify the path to purchase, and improve try-on technology.
As AR continues to gain traction in the retail industry, it’s clear that this technology has the potential to reshape the way brands interact with consumers and drive business growth. By embracing AR solutions, retailers can create more immersive and personalized shopping experiences that resonate with the tech-savvy Gen-Z audience.
