The Future of Retail: Augmented Reality in 2019
What is Augmented Reality and How Can We Use It?
Virtual and Augmented Reality applications allow a user to experience a simulated creation through the comfort of their own mobile phone. With Apple set to have over 850,000,000 AR enabled devices within the next three years, it is certain to be the next big thing in retail promotion. Over one in five shoppers expect retail brands to launch AR tools after the launch of Apple’s ARKit.
VR games have taken the gaming industry by storm since SEGA first released Sega VR headset for the Sega Genesis console in 1998. Although, VR and AR were first adapted from gaming use it is proving to have positive effects within other markets such as fashion and home ware.
The latest market study provided by Juniper Research shows that Augmented and Virtual reality is going to be worth $2.4 billion in 2019, compared to $247 million in 2014. Businesses within the fashion and clothing market are developing technology that would enable customers to ‘try on’ items of clothing using augmented reality.
PICTOFIT is an app launched in 2018 that allows users to virtually ‘try on’ their favourite clothes and designers and share these creations with friends and family. With 41% of online shoppers already expecting some form of augmented reality available in retail, many retailers will be sure to implement this into their detail presence soon.
Augmented reality apps would allow a business within the retail market to move their business from in store into a customer’s home. VR and AR applications not only offer a unique buying perspective but make for a more interactive and customisable experience.
A Personalised Experience Every Time
Personalisation of the customer experience in augmented reality is simple. As the user is basing the experience off of their own home, workplace or appearance each customer’s experience is completely unique. Tailoring a user’s journey to suit their personal needs and wants not only improves the customer’s satisfaction but increased customer retention. According to a study by Retail Perceptions in 2016, 71% of people would shop at a retailer more often if they were offer augmented reality, with a whopping 40% willing to pay more for a product if they could experience it through augmented reality.
IKEA Show Room or Your Living Room?
IKEA launched an augmented reality IPhone app in 2017 which allows users to select furniture from their range and place it in their own homes through the use of their IPhone camera. This meant that users wouldn’t have to visit an IKEA store to browse for home furnishings, but could visualise potential purchases within their own homes. A user can move and tilt a to scale virtual item of furniture to make purchase decisions at home or in the workplace, without pressure.
American Airlines have also developed a prototype AR app that guides travellers through their chosen airport to their flight gate. The app not only gives the user the quickest route through the airport, but also provides alerts for gate closing times and delays.
This simple idea is easily executed and results in fewer passengers missing flights. Although, used in an area which is heavily signposted may create even more confusion; with users becoming more dependent on their phones they may miss crucial checkpoints through the airport.
Is Augmented Reality Right For My Business?
Products which cannot be tested before use, such as carpets and furniture, would benefit greatly from augmented reality applications as they would offer an experience otherwise unavailable. Finding a problem that can be fixed through the use of AR can be tricky. Currently the most successful AR apps are those that make a shopping experience easier, or offer a different method of browsing and purchasing products.
A downfall of the use of AR apps for home ware is the ease of usage by their target audience. The average age of a customer buying carpet is between 35 – 50, not all of those that fall into this category may be knowledgable in smart phone technology. This could be easily proved with preliminary tests with target markets before an AR application is launched.
References:
http://ikusmer.blog.euskadi.eus/wp-content/uploads/2016/12/The-impact-of-augmented-reality.pdf
https://www.vrs.org.uk/virtual-reality/history.html
University of Warwick – Warwick Business School, Coventry CV4 7AL, United Kingdom
Received 28 February 2016, Revised 29 September 2016, Accepted 30 September 2016, Available online 14 October 2016.