The future is now: Augmented reality (AR), machine learning, and artificial intelligence (AI) are all here to stay. Retailers are leveraging AR technology to bridge the gap between the digital and the physical.
The demand here will be substantial in the future as the implementation of these technologies enables businesses to grow and increase financial prospects. Implementation of AR and VR in retail helps both retailers and consumers alike, from offering an immersive, engaging experience to consumers to a reduction in operating costs for retailers, respectively.
Key features noted below are some of the reasons why these techniques have a promising future.
- Customer Engagement
- Create a personalized shopping experience
- Improve customer satisfaction and customer return rate
- Content marketing
In 2019 Maruti launched its All-new Maruti Suzuki WagonR and used AR technology in the marketing segment, with a QR code.
When the user scans the code, they are allowed to select the desired location for the virtual car tour. Next, an all-new Maruti Suzuki WagonR virtually appears on this phone screen where the consumer has a 360-degree viewing angle along with a few highlights which speak about all new features of the car.
This marketing strategy created a huge buzz among the target audience and helped to grow its sales figure. But that’s not the only place AR/VR was applied successfully to enhance the shopping experience.
AR/VR is applied in various retail sectors such as furniture retail, beauty industry, fashion and footwear, real estate, and the like.
In 2020, our experts expect China’s e-commerce market to be full of innovation while also showing a stronger expansion strategy into e-commerce along with faster delivery.
AR and VR technologies can play a massive role in live commerce techniques such as Live Streaming, which went on to become a big influence on consumer shopping behavior in 2019. It will continue to be increasingly important in China’s e-commerce market in 2020.
Immersive 3D experiences using virtual reality (VR) could push Live Streaming to the next level, allowing consumers to look at the product at every angle and even experience the excitement of being at the store.
This sales medium is similar to television shopping—think QVC—but upgraded for the 21st century. Live Streaming sessions host real-time broadcasting of video content by presenters such as social media influencers that model or try out products. Viewers are able to purchase featured items while watching a video through embedded online links. Just like presenters on QVC, live streaming hosts sell a wide range of products, from apparel and cosmetics to electronics and cars.
There are a few reasons that shoppers are attracted to Live Streaming:
- A curated selection of products
- A wide range of products
- Low prices
- Prize draws
- Limited-quantity and limited-time offers
The global market for VR and AR in retail is expected to reach a staggering USD 1.6 billion by 2025. With such a huge potential market, retail businesses must look forward to adopting these technologies.