Augmented Reality (AR) is bringing about a new wave in retailing since it provides an exclusive touch of reality that makes it difficult to differentiate between the physical environment and the virtual environment. Since AR is updating digital information in a real environment, consumers can buy products with the image placed in their environment. This article examines ways that AR is set to revolutionise the Australian retail sector specifically addressing the issues of fitting room and visualisation of products.
Understanding AR Technology
While augmented reality and virtual reality resemble each other, the former overlays digital content on the real environment, and the latter generates a fully realised artificial world. Core components of an AR system include:
• Hardware - Smartphones, tablets, and specialised AR glasses, function as a means of providing AR experiences.
• Software - AR development platforms can be characterised as supplies that can help in AR application development and distribution.
• Markers or Sensors - They allow the AR devices to capture the user’s surroundings and location with precision for the application of virtual objects.
Thus, the concept of the AR Fitting Room Experience can be presented in the following way.
AR has introduced drastic changes to the fitting room process that people go through. Body scanning and 3D modelling are the accurate techniques that can help retailers create virtual customer models with correct body sizes. These avatars can then be utilised in the selection of clothes, accessories, and even the makeup to be used.
Key benefits of AR fitting rooms include:
• Enhanced Customer Experience - The different pieces of clothing do not have to be worn successively by the customer since at any given time the client can wear one or several pieces of clothing.
• Reduced Return Rates - The use of AR technology can assist customers in arriving at the right buying decision hence reducing customer returns and enhancing customer satisfaction.
• Improved Product Discovery - AR benefits the customer as he/she gets to try out the assorted styles and coordinate them in a way he/she had not thought of before.
Enhancing Product Visualisation
Most importantly, AR does not only stop at the fitting but aims at taking over the control of product visualisation within the different retail segments. By including digital product information in the real-world environment, customers get a chance to be offered a more engaging and informative shopping destination.
• Furniture Visualisation - AR apps enable an ostensive of the furniture’s location in the house before being bought. This saves time and enables consumers to avoid those items that they may not like or do not suit them.
• Makeup and Beauty Try-Ons - Applications of AR help customers preview different looks based on makeup products and guide them on the products to purchase.
• Jewellery and Accessories Visualisation - With the help of AR, one can demonstrate the jewellery and accessories in various lighting conditions and on several types of clothes which gives a far more accurate impression of the product.
The Use of AR in Omnichannel Retail
It has been revealed that AR has the potential to fill the gap between traditional and e-commerce. When used well, AR can enhance both channels and help retailers deliver a harmonised, exciting experience to the customers.
• In-Store Experiences - AR can be applied to provide more product information, promotional stands, and recommendations for the customers within the physical space of a store.
• Online Shopping - Challenges such as the realisation of augmented reality virtual fitting rooms as well as the use of augmented reality for product visualisation improve the online shopping experience for customers.
• Loyalty Programs - AR can also be used by retailers to enhance the concept of loyalty programs – providing special bonuses and an individual approach.
Overcoming Challenges and Considerations
Although AR has significant leverage, some barriers should be addressed. The precise measurement of the body and elements such as rendering in real-time involves a certain standard of technology and computing. Also, the issues of privacy protection of the collected and used data must be resolved to the maximum.
AR to work well in the retail business, the retailers need to source quality product models and 3D content. This is where development experts in AR can be of help since they will be fully aware of the familiar challenges and be fully equipped to assist in the development of good AR content.
The Future of AR in Retail
Since the dawn of digital advancement and more specifically augmented reality in retail, a major question that has been raised is the future of augmented reality.
AR in retail has a very promising future as development in the field does not seem to stop with ever more engaging and customised shopping experiences on the horizon. It is possible to assume the increases in the precision in measuring the body, greater compatibility with various devices, and the connection of augmented reality with other technologies such as artificial intelligence or virtual reality.
• IKEA - AR was first adopted by IKEA and in 2017 the company released an app called IKEA Place. Towards the end of virtual reality, users can place virtual pictures of furniture on top of the actual environment. It has more than 3200 items and such options as ‘look for similar’ and ‘feel the item’.
• Walmart - As of today, Walmart has been trying to incorporate AR in various aspects, such as creating virtual shopping tours or having interactive showcases of products. They are supposed to result in customers being able to interact with the company through multiple channels integrated into a consistent whole.
• NIKE - AR is also adopted by NIKE to interact with the fans. Their application enables them to offer customers the opportunity to ‘’touch and feel’’ sneaker products to eliminate the physical touch factor of the sneakers hence creating a strong sales bond between the companies and the customers.
• Amazon - Even though Amazon has not introduced AR into its services to the fullest, they have integrated some of its aspects, for example, AR View which allows visualisation of the product in the interior.
• Sephora - The Virtual Artist application of Sephora makes the customers virtually apply makeup thus they develop an easier time ordering products online.
Novelties of AR use in retail include virtual fashion shows, interactive use of AR in the demonstration of products, and shopping as a game. As it will be shown in the following research, as AR progresses as a technology, more available, and more affordable, it becomes a utility for retailers that must be utilised to remain relevant in the modern market.
Some of the strategies used by many competitors are already employing applications of augmented reality, proving the ability of this technology to boost sales and customer satisfaction. Sephora, IKEA, and Amazon are some of the companies that are using recommender systems that may give the lessons learnt.
To measure the success of AR initiatives, retailers should track key metrics such as:
• Conversion rates - In what way does AR influence customer’s propensity to buy?
• Customer satisfaction - In what ways does AR optimise the general shopping experience?
• Return rates - Does AR assist in mitigating product returns?
• Time spent on site - In which way does AR affect customers’ engagement and time spent?
These metrics, when scrutinised properly, can help retailers optimise their AR strategies and the ROI (return on investment) they can get from them.
Augmented reality is being widely adopted in the retail sector as it provides customers with the best and most interactive experience. This, therefore, means that any retail firm that would embrace the use of AR technology would be able to enhance its bond with its customers, boost its sales, and most importantly, have an edge over the competition. Over the years, the use of AR will continue to improve and cause a revolutionised sophistication of the admirable applications of the technique in the retail sector.
About Northbridge - IT Recruitment Agency in Sydney, Melbourne and Brisbane
Northbridge specialises in connecting your business to top talent across Sydney, Melbourne, and Brisbane. Feel free to reach out to our dedicated recruitment teams: Government & Key Accounts, Sydney, Melbourne, and Brisbane.
Our solutions cover Permanent Recruitment, Contract, SOW and Temporary Staffing, Labour Agreement - On-Hire, Payroll Management, and IT On-Demand.
