Introduction to the Luxury Market
The personal luxury market is estimated to be US$300 billion in 2019 and is anticipated to grow to US$500 billion by 2020. Southeast Asia is the following biggest marketplace for luxury goods after China. More than 100 million consumers are expected to buy using augmented reality online and in-store by 2020. The global online clothing rental market is anticipated to succeed in US$1,856 million by 2023.
The Impact of Augmented Reality on Retail
With the progressive advancement in technology, the impact of augmented reality (AR) and virtual reality (VR) in retail will be transformative. Brands can now use AR to boost customer experience and cut unnecessary costs. With the “try before you pay” concept, AR can bring tremendous value to each customers and fashion brands. AR technology allows users to see what they appear like dressed up in certain clothing and find the scale that matches them best.
How Augmented Reality Works
The process could be very easy: the user takes an image, the AR augments every little bit of apparel or outfits to the user, and the user sees themselves in those outfits. Given the exceptional quality of smartphone cameras, this method couldn’t get any easier. In addition, Apple and various Android brands are releasing recent AR-friendly smartphones, making it more accessible to users.
Reducing Return Rates with Augmented Reality
On the business side, the return rate of fashion items has been very high, with 60% on average and 75% at peak. This becomes an enormous problem for retailers and logistic players because it incurs significant costs. AR will be used to boost the understanding of product fit and liking through advanced visualization and simulation technology, potentially reducing return rates.
The Rise of Southeast Asia in Luxury Shopping
Although the market like China stays considered one of the largest players in luxury shopping, Southeast Asia is catching up attributable to the increasing purchasing power of the booming economy. Fashion brands from Europe have been progressively shifting their sales to Asia prior to now years to drive revenue. With AR technology, the gap in fashion sales between Asia and Europe will be closed, counteracting the fear of high return rates.
The Future of Fashion Rental Market
In the West, fashion rental marketplaces like Rent the Runway and thredUP have been trendy amongst fashion shoppers. However, rentals haven’t been as popular in Asia, and that is deemed to vary. Using data analytics and taking the total fashion cycle under consideration, retailers can gain insights on customer behavior and shopping preference. Items of certain basic colours have a better tendency to be bought outright, while colourful ones are inclined to be rented more.
The Evolution of Consumer Behavior
The rise of technology has caused a behavioral transformation in consumer behavior. With nearly 90% of consumers on fashion e-commerce being female, men are inclined to find fashion uninteresting and unnecessarily costly. However, the evolving dynamic of fashion technology coupled with fashion marketplace can potentially attract more male players into the style space.
Notable Examples of Augmented Reality in Fashion
BlinQ: The ‘Superapp’ for Luxury E-commerce
BlinQ technology allows users to virtually try on and buy designer apparel and accessories from online luxury and contemporary fashion retailers globally. Through AR and algorithmic patterns, the platform provides users with the most recent trends and personalized fittings from their digital devices.
Apple’s AR Development Platform ARKit
ARKit can augment many other visuals aside from just gaming. Two years ago, ARKit partnered with the style brand Burberry to permit customers to mix their pictures with interactive Burberry features and frames onto social media postings. Today, high-end fashion brands just like the LMVH brands are also adopting this technology.
L’Oréal’s Makeup Genius App
ModiFace was an augmented reality application acquired by L’Oréal that allowed users to simulate their faces and hair with different makeup, beauty products, and hair color. The app works like filters but is more visually realistic than generic social media filters.
Conclusion
The integration of augmented reality in the style industry is transforming the way in which consumers shop and interact with fashion brands. With the power to virtually try on clothes and makeup, consumers could make more informed purchasing decisions, reducing return rates and enhancing the general shopping experience. As technology continues to evolve, we will expect to see much more modern applications of AR in the style industry, changing the way in which we shop and interact with fashion endlessly.
