Augmented Reality (AR) and Virtual Reality (VR) are poised to revolutionize the business landscape, heralding a transformative era in consumer engagement. Beyond mere trends, the integration of AR and VR is proving to be a pivotal shift in redefining industry dynamics in 2024.
As these immersive technologies evolve, businesses have unprecedented opportunities to improve user experiences, foster innovation, and create compelling narratives. The fusion of digital and physical realms is becoming increasingly seamless, offering a dynamic platform for interactive and personalized engagements.
From retail, luxury fashion, and beauty to skincare, the influence of AR and VR is permeating diverse sectors, setting the stage for a future where immersive experiences become integral to how businesses connect, communicate, and thrive in the ever-evolving market landscape.
The Current Landscape: Market Projections and Consumer Preferences
AR & VR market users are expected to reach 6,768.0m users by 2027. The user penetration rate is projected to be 92.2% in 2023 and will increase to 103.6% by 2027.
The average revenue per user (ARPU) is expected to be US$5.5. It is now clear that consumers are increasingly drawn to immersive technologies. Businesses, in turn, recognize the need to leverage AR and VR to drive growth.
From Cart Abandonment to Customer Loyalty
In e-commerce, where approximately 70% of shoppers abandon their carts, AR and VR step in to alleviate this challenge. These technologies significantly reduce friction in the online buyer journey by allowing consumers to try products before purchasing. The result? A more seamless and engaging experience that increases the likelihood of converting prospects into satisfied clients.
As consumer behavior shifts toward digital interaction, major e-commerce players like Sephora, IKEA, and MOSCOT leverage AR and VR to meet evolving expectations. These technologies offer virtual try-ons and interactive experiences, giving customers a digital interaction with products before stepping into physical stores.
Improved Digital Marketing Efforts
Digital marketing is also experiencing a paradigm shift, with platforms like Facebook experimenting with AR eCommerce ads. Google also plans to integrate AR product images into paid and organic search results. This indicates a broader trend where AR and VR technologies are becoming integral to enhancing online marketing strategies. 2024 will likely witness AR being leveraged in digital marketing to a greater extent.
Reducing Returns and Building Confidence: The ‘Try-Before-You-Buy’ Advantage
One of the most significant advantages of AR and VR in e-commerce is their ability to reduce returns. The ‘try-before-you-buy’ feature allows shoppers to virtually visualize and try on products, instilling confidence in their purchasing decisions. Particularly impactful in the fashion industry, this feature minimizes the likelihood of returns, contributing to business cost savings.
eCommerce AR-VR Trends for 2024: Looking into the Future
Looking ahead to 2024, several trends are set to define the e-commerce landscape, propelled by AR and VR technologies:
Virtual Showrooms: Transforming the Shopping Experience
Virtual showrooms will change how people shop, converting empty rooms into digital spaces where customers can explore various products. Automotive brands like Kia already leverage VR to allow customers to experience different car models virtually.
Virtual ‘Try-On’: Personalizing the Online Shopping Experience
Incorporating more virtual try-on technologies in 2024 across various product categories is expected. AR-embedded filters and mirrors will enable customers to ‘try on’ clothes, shoes, furniture, makeup, eyeglasses, and accessories without physically wearing them.
In-Store Navigation: Augmented Assistance for Shoppers
AR-driven in-store navigation apps will provide users with optimized shopping routes, exact product locations, and guidance to specific sections like discounts. Lowe, a leading home improvement brand, already uses this technology to enhance the shopping experience.
AR Filters: Visualizing Products First
Businesses increasingly use AR filters to help customers visualize products, from sunglasses to makeup. Companies like Warby Parker Sunglasses and Sephora utilize AR technology to provide innovative and interactive customer experiences.
VR for In-Store Experience
As customer behavior shifts towards online shopping, VR will be crucial in bridging traditional and digital stores. Customers can navigate a VR store, interact with friends, and seek assistance from virtual staff members.
Interactive User Manuals: Simplifying Complex Products
Interactive user manuals will become the norm, especially for products with a steep learning curve. Customers can scan a product and access a virtual walkthrough, understanding its features, setup process, and more.
Stylish Future For AR VR eCommerce With SelfStylo
The impact of Augmented Reality and Virtual Reality on e-commerce transcends industries, and in the beauty and fashion sectors, it’s a journey into a stylish and immersive future. From virtual beauty try-ons to navigating digital fashion malls, AR and VR are not merely technologies but catalysts for improving how we experience and engage with beauty and fashion products online.
As the glamor of virtual transformations unfolds, beauty and fashion brands embrace these technologies to create a digital landscape where every click is a step into a chic and personalized shopping adventure. With SelfStylo, you can get started on your AR journey. Bring your brand forward, and let us help you. Request a FREE demo today to experience the AR magic first-hand!