5 Reasons AR is the Future of Online Shopping
The fourth-largest sector of the global economic economy, fashion, is facing significant changes. The fashion industry faces many challenges at the moment. In a highly competitive marketplace, there are thousands of retailers, brands, and companies that need to improve their business processes, increase sales, get new customers, increase revenue, and be more environmentally-friendly.
The industry has been looking for solutions to these problems and is turning to emerging technologies such as AR or IoT. Online shopping has become a popular option for many consumers over the last decade. The COVID-19 Pandemic has increased the popularity of online shopping. The COVID-19 pandemic has boosted online shopping by 49%.
E-commerce is a relatively recent direction for the fashion industry. Online retail can present its own challenges but it can also offer tools and solutions to some of fashion’s most pressing issues.
Digital tools that are used in ecommerce can allow for new communication with consumers and encourage them to purchase online. In the wake of the economic recession as well as the environment crisis, there are ecommerce solutions which can help reduce production costs while ensuring sustainability in the fashion sector.
AR is an emerging technology that is highly in demand because it has the ability to help industry players deal with many of the above issues. This technology is sure to change the face of fashion. It can make online shopping an efficient sales channel. This is supported by five strong points.
#1: AR increases profitability
The digital try-on tech is one of the biggest benefits that ecommerce receives from AR. It allows users to simulate clothing (e.g. Snaps, ZERO10s, Clo-Z), footwear (e.g. Wanna Kiks), Vyking), accessories and beauty products (e.g. ModiFace. Virtool. Visage Technologies), in a virtual world that is very similar to what they see in the physical world.
This is important as it will help people decide if the product is right for them. In 2019, just prior to the pandemics, 55% stated that they were able to try clothes on in brick-and mortar stores.
Although it’s unlikely consumers’ preferences have changed over time, COVID-19 compelled people to shop online. Now, more people are comfortable shopping online and still love to try on clothes. They often purchase apparel online, try it on at home and return at most some of the items.
People are more likely to shop thoughtfully because of the global economic crisis.
AR try-on lets users use their smartphone cameras in order to see how the digital replica of the item looks on them. You can make the experience very real with technologies that can detect your body and segment it to simulate different types.
It helps to make informed, more concrete decisions. If consumers have confidence in their purchase decisions, they are more inclined to purchase more. Sales see an increase, while returns decrease. This is because returns add to the logistics costs and reduce the profitability of each product.
#2: AR makes shopping less expensive
Fashion is facing one of the most difficult challenges in today’s world. Fashion is one the most polluting industries in the world. Every year, the US dumps 11.3 millions tons of textile.
Because brands produce more clothing than is possible to sell, especially in mass-market fashion, the production of clothing plays a large role in contributing to the environmental problem. However, it is clear that humanity is purchasing too many clothes.
A lot of customers find it easier than returning items that are too large to be thrown in the dumpster.
AR tryon technology encourages thoughtful purchasing and lowers the chances of making poor buying decisions. This helps decrease textile waste. Additionally, it encourages a decrease on returns and cuts CO2 emissions from logistics.
AR tryon may be able to reduce the manufacturing of physical clothing. AR can be used not just to try-on already-manufactured clothing, but it can also allow you to try out new concepts. The ability to view and try on physical prototypes of clothing may help bring certain fashions to life, depending on what the consumer wants. You never know what this might do for the fashion industry.
This ensures there won’t ever be excess production of non-demanded goods, which could end up as waste.
Being committed to sustainability will help us all contribute to a better tomorrow. It will also increase brand loyalty. McKinsey says that 63% Europeans regard sustainability promotion by brands as an important purchase factor.
#3: AR holds the key to unlocking the Metaverse
The Metaverse has been a major topic in discussions about the future and society. The number of searches made for the keyword “metaverse”, in 2021 rose by 7,200%. Although mass adoption for the Metaverse is not possible right now due to its complexity, it’s expected to become a major trend in the near future. AR allows brands and retailers to discover the Metaverse possibilities. It also opens the door to the future of fashion.
There are two main sales opportunities the Metaverse provides for brands: selling avatar-generated digital clothes and setting up virtual stores where users can buy actual clothing. Although it may sound absurd to some, the prospect is actually quite attractive.
Online shoppers spent $60-70billion on virtual goods through video games in 2021. That means there are many people who have become accustomed to purchasing digital clothing, accessories, or cosmetics. The second option transforms e-commerce shopping into a fully immersive experience. It’ll make what was once a boring and monotonous process more enjoyable.
The Metaverse can also be used to increase marketing. It’s a place that brands and retailers can connect with their audience and showcase products. Metaverse will help sellers make better offers to customers and establish loyalty programs.
It’s possible to wait until Metaverse grows in popularity and reaches a wider audience. But retailers and brands will have to chase those who chose to make their presence there before they can. It’s common knowledge among all that being an early user is more advantageous than catching up.
#4: AR allows Gen Z to connect
Gen Z consumers are now in control, and retailers and brands struggle to communicate with them. This generation is familiar with technology and ecommerce must communicate with them using the same innovative language. They make smart financial and ecological decisions, and they see shopping as more than just a transaction.
Gen Z consumers will often thoroughly evaluate clothes before purchasing. It’s crucial for ecommerce companies to offer them the most convincing data. AR tryon is a powerful tool to persuade Gen Z because it helps them form a better opinion. It offers new opportunities to engage with Gen Z online, through social media and Metaverse.
In terms of social media, young people see apparel as a tool for creativity and self-expression. Many social platforms require a statement look that can be worn one time and then returned or forgotten. It’s also not sustainable.
Gen Z cares deeply about the environment. They make an effort to reduce environmental pollution. They appreciate digital apparel. They will also enjoy the option to have physical clothes made on request.
#5 AR facilitates new talent discovery
Financially, it can be hard to start your career as a fashion designer. For their first products and collections, fashion designers must often invest their own money. They also need to purchase textiles and accessories. They also need models and show materials to make an impressive presentation.
Emerging creatives can showcase their collections using AR, which is more sustainable and financially viable than traditional marketing methods. An augmented reality platform can make fashion design competitions more accessible and inclusive, eliminating geographical and financial limitations. These contests may even become part of the Metaverse.
The result is that the fashion industry will be more democratic. This will mean that more talented fashion designers will have the chance to work in the industry.
It is easier to sell clothes online than in a brick & mortar store. But, aspiring designers need to connect with their customers. They also require digital tools. They are more cautious about designers who aren’t yet familiar to them. The process of changing consumers’ minds requires a lot.
It can be difficult to forecast the future. Predictions are not always 100% accurate. Aside from that, there are always some “black swans” waiting to come along and change the game. AR will be able to improve ecommerce. But that’s not a prediction. It’s happening already.
Retailers and brands that are forward-thinking are more inclined to experiment with this technology. They see the benefits it could bring to their business and create new opportunities.