Have you ever purchased clothes online, only to have them arrive feeling like they’re three sizes too big? Or what about reading reviews that speak to the vibrant color of the fabric only to be immediately underwhelmed by the dull hue when you open the package? Imagine never having to guess again about the size, color, or fit of a clothing item you see online. With augmented reality being introduced to the e-commerce industry, hopes for a more personalized online shopping experience from the comfort of your own home are coming to fruition [1].
Last year, COVID-19 triggered an astronomical [2] jump in the popularity of global e-commerce. While there’s apparent growth in the e-commerce industry, this rising demand has created new obstacles for companies to face.
At the end of 2020, one in four consumers stated that they had a negative experience with online shopping during COVID-19. A large part of this dissatisfaction stemmed from clothes not fitting correctly, items looking different than in their photos, and expectations based on online descriptions and reviews not being met. With the potential growth trajectory of the online fashion industry, AR technology seems to provide a way to enhance the online shopping experience during this pivotal time of expansion.
AR is an immersive 3D technology that integrates the user’s existing physical surroundings and perception with digital enhancement. In other words, it overlays a digital reality on top of the current reality. While there are different ways to utilize AR in e-commerce, the most cutting-edge way is to have a user create a “virtual avatar” of sorts. This entails uploading facial images or utilizing a smartphone camera, as well as reporting body measurements. Then, the computer can generate a realistic avatar of the person to “try on” clothes and give a more accurate visualization of what the apparel would look like on them.
Many companies have already started integrating AR into their online platforms. In 2019, the sneaker resale company GOAT launched a virtual try-on service that allows shoppers to try on sneakers before committing to buying them. The user can simply select a shoe they are interested in, add data about their feet size, and point their phone’s camera at their feet to see exactly how the shoes would look on them in real life.
Tenth Street Hats provides another example of leveraging AR technology for e-commerce. Its platform allows the user to select a hat of interest and use the front-facing camera feature on their phone or computer to experience a 3D visual of the hat on their head. The company reports a 40 percent increase in its revenue per user after implementing this technology.
Luxury fashion brands are also taking a liking to AR technology. Chanel, Dior, and Gucci have created AR Snapchat and Facebook filters for people to “try on” accessories. In addition, AR in the beauty industry is a rising trend: Sephora launched an AR app powered by ModiFace, which allows users to try on makeup looks using a photo-realistic, color rendering technology.
On average, 30–40 percent of clothing items purchased online are returned. This points to a gap between expectations and reality that not only hurts profits, but also creates agitation for customers. AR technology, by allowing better visualization of how products would look on the buyer, limits the necessity for returns.
Pairing AR technology with the fashion industry leads to multiple advantages on both the business and consumer end. For one, it boosts customer engagement. People are more apt [3] to spend time on a website if they are captivated and find it enjoyable, and people who spend more time on a website are therefore more likely to purchase products. Moreover, research indicates that 70 percent of consumers are more likely to remain loyal to the brand and return for future shopping if the company utilizes AR technology. On the customer side, AR technology can enhance perception capabilities, creating a more realistic and personalized experience in the era of e-commerce.
AR technology is revolutionizing the online shopping experience. A 2020 survey indicates that 20 percent of US retailers plan to invest in AR technology in the coming years. With future developments yet to come, suffice it to say that, in a few years, the online shopping experience will look drastically different from what it is now.