Augmented reality in retail (An Overview)

Jeffrey Boopathy
4 min readMar 14, 2023

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Retail businesses have had to reinvent themselves in recent years to innovate and enhance the customer experience. Users have also raised their expectations significantly due to the pandemic, forcing brands to adjust to the new multi-channel environment, both online and offline. To boost customer happiness, they have thus had to develop and adapt their new techniques in traditional retail and online sales.

In this regard, augmented reality has developed into the chance and the best method for competing in the market. It is a technology that combines actual and virtual elements like objects, messages, or images to enable consumers to interact with the environment and a brand using only a mobile smartphone.

Many types of gear can be used to experience augmented reality, including mobile devices (smartphones and tablets), wearables, computers and laptops, TVs, digital mirrors, linked glasses, head-mounted displays, lenses, and even AR fitting rooms. The distinction between augmented and virtual reality is that the former “augments” the real environment with new virtual items, while the latter “replaces” it.

What are the benefits of AR in retail?

Increasing sales

Customers may virtually test out things before they buy them, thanks to AR technology. For example, they can see how new furniture will look in their home or place of business and how precisely apparel will fit them. Whether a customer purchases something physically or online, AP shortens the customer journey and boosts retail conversions.

Reducing returns

Customers may choose the things that are best for them and avoid disappointment with the aid of AR. As a result, return rates for physical stores and online retailers frequently decline.

Customer engagement rising

Customers’ interest in products is sparked by the virtual experience that augmented reality in retail gives while giving them all the additional product information they could require. Well-informed customers frequently return and shop for additional items whenever they can.

Making content for social media

Customers have something to speak about and post on social media, thanks to the AR experience. The ensuing comments and discussions on social media contribute to raising brand and product awareness.

Gathering information about client preferences

The details of the goods that customers opt to test out through AR-enhanced shopping reveal a great deal about their interests, preferences, and purchasing habits. Retailers could use these insights to create tailored marketing and advertising strategies.

Providing a contactless environment

The use of AR in retail helps to decrease contamination hazards and hygiene problems in a post-pandemic society.

Lowering payroll costs

AR app users can find in-depth information about the objects they are interested in. Moreover, augmented reality in retail aids customers in navigating the store, minimizing the need for human sales associates.

Fostering client loyalty Higher customer loyalty results from superior customer experiences, which also aids audiences in forging closer connections with brands.

What are the use cases of AR in retail?

Virtual tours and the visualization of space

Customers can virtually tour a business or property using augmented reality (AR) technology before physically visiting. Thanks to augmented reality, they can receive a sense of the location and become familiar with the important aspects in advance.

Colour coordinating

Apps for augmented reality shopping are frequently used to coordinate colours and develop the best colour scheme for a space or clothing. For instance, consumers can choose the new wall colour for their house using the Dulux Visualizer app.

Visualization of clothing

Apps that address the issue of being unable to picture how the garments hanging on store hangers would appear in real life are examples of augmented reality. Customers may determine whether a garment will fit by viewing how it will appear on models with various body types and sizes using the ASOS Virtual Catwalk app.

Storefront displays

Several firms are setting up in-store displays that provide customers with various interactive experiences to enable augmented reality in retail locations.

For instance, in Kate Spade stores, augmented reality displays allow customers to customize their bags with embellishments and other accessories.

AR changing areas

Thanks to augmented reality in shopping, customers no longer need to try items on to see how they fit. They can use a virtual changing room to select the outfit that fits them the best. For instance, Timberland has set up displays where guests can examine their reflections and try several outfits.

Customers do not even need to enter the store to see how they will appear in specific clothing. Chinese clothing company Lily’s has installed an augmented reality display on a shop window at the subway platform of Shanghai’s West Nanjing Road Station. While they wait for trains, passengers can try on outfits.

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Jeffrey Boopathy
Jeffrey Boopathy

Written by Jeffrey Boopathy

🎙Building my first Saas product | 5+ years in podcasting | Let's connect on LinkedIn -> https://www.linkedin.com/in/jeffreyboopathy/

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