Suppose you asked someone what Augmented Reality is before 2016. In that case, you’d get responses like, oh, it’s the Google glass project or fictional expectation like an Ironman suit with JARVIS like voice assistant. Augment Reality until recently was looked at as a science-fiction concept, and now we have started realizing it as science-based Reality. Earlier Augment Reality costs were so substantial that designers would only dream of working on such design projects that made use of it. This has drastically changed today, and we have mobile apps with augment reality capabilities.

The New Direction for AR – Post Pokémon Go 2016

It can be said that Pokémon Go – the augmented reality-based mobile game developed and published by Niantic, Nintendo and The Pokémon Company is a benchmark of changing how the world viewed AR. This game opened up many possibilities and showcased AR’s capabilities at the present date to interact with real-world objects, components, and the environment.

As per Guinness World Records, Pokemon Go revenue was the highest ever of any mobile game in the first month at an impressive $207 million.

This uncanny success in the mobile gaming industry-inspired and motivated marketers and developers for exploring the possibilities and potential of AR for other uses in fields such as –

• Gaming
• Education
• Health and Medicine
• Shopping

The New Focus for AR – Post COVID-2019

The world is experiencing a major shift from offline to online shopping. People were gradually moving from offline marketplaces to online shopping solutions, but the ongoing global pandemic accelerated the shift by many folds. The global pandemic established behavioural changes that are expected to remain with people even after the world goes back to something that remotely resembles normal or the Pre-COVID phase of our lives.

As the world was facing global lockdown with movement restrictions to any shopping malls, theatres, restaurants and more such amenities, they were also getting more used to rely on alternatives such as video-streaming services like Netflix, Prime Video, Hulu and more and shopping mall alternatives such as Amazon, Flipkart, Myntra and more. Dependency on online shopping increased significantly. This change in consumer approach drives retailers to explore new and innovative ways to connect with their consumers, stand out from the crowd, and widen their reach using innovative and exploratory methods.

AR has an abundance of such opportunities. Many retailers have already experimented and explored AR’s scope for promoting their brands, while others are still trying to get their heads around it.

The Current Market Scenario – Retail and AR

Since AR is still an emerging technology, there is a mix of emotions and reactions to the idea of integrating AR in the retail industry. Here are some useful facts and stats that help paint a clearer picture of where AR stands in the retail space in 2021.

1. It is estimated that global AR headset shipments will exceed 30 million units, which is 12 times the expected numbers of headsets expected to be a shift in 2020. (Source)
2. As per a survey, consumers listed AR and VR as the leading technologies they want to assist them in their daily lives. More than 51 per cent of them admitted that they want to use these technologies to assess products. (Source)
3. Shopify tweeted products with 3D/AR content showed a 94% higher conversion rate than products without 3D/AR. (Source)
4. 63% of customers are sure that augmented Reality will improve their shopping experience. While 35% of customers admit they would go online shopping more if they could virtually try stuff before buying it. Moreover, 22% would be less likely to visit a brick-and-mortar store if AR was integrated with online stores.(Source)
5. More than 60% of consumers want to shop for furniture with AR, and 72 per cent of consumers buy more than planned when they have an AR experience. (Source)

How Retailers Can Integrate AR leveraging Online Platforms

Many product offerings have different user buying experiences and different approaches needed to attract their respective target audience. AR integration aims to create an immersive and interactive experience where the consumer is an active part of the process and not a passive observer. Here are some ways retailers can integrate AR leveraging online platforms.

1. Virtual Fitting Rooms

If we talk strictly from the generation point of view, we all know that Gen-Z is obsessed with selfies. If you are a youth-targeted brand, you know they have absolutely no objection to turning their device’s camera on to themselves. This would allow them to try on your clothing and accessories, which would give them a better idea of how it would look on them instead of having to visualize it based on seeing a random model wear it.  Suppose you want to go a step further. In that case, you could also integrate machine learning and deep learning networks with augmented Reality, which would help your users select the ideal size of any particular clothes they are thinking of buying based on fitting, comfort and other preferences.

Case Study: Lenskart – 3D Try on by Ditto

Lenskart is one of the leading Indian optical prescription eyewear retail chain. Their manufacturing facility in Delhi manufactures around 30,000 glasses a month.  This same company is also one of Augmented Reality’s early riders back when it wasn’t even cool. People barely knew about 3D rendering and AR capabilities. I think it’s safe to give them credit for being one of the pioneers of introducing innovative virtual solutions for creating a more engaging user experience for their users. In 2012, they came up with the ‘3D Try On’ feature, which allowed users to access Lenskart’s website and app and try out the different glasses on realistic 3D models of themselves. They partnered with Ditto for introducing this feature to their audience. Ditto is the leading virtual try-on software for eyewear and frame recommendations that helps create a seamless path for users to make their purchase decision.

To date, this feature has given them an unmatched edge over any eyewear retail chain in India. People have the comfort of trying on different glasses before making the purchase, which provides them with a sense of pre-ownership and joy even if they don’t intend to buy. It invokes curiosity in them, and they get more engaged with the experience of using your services. This helps them come around and buy your products eventually or at least spread word-of-mouth amongst their social circles about this fascinating service you’re providing.

2. Visualizing Products in Physical Spaces

The biggest challenge people face when reinventing their office/home or any other space is seeing how a particular furniture piece or showpiece would look in their space. This is one of the inability or limitations that we don’t even think about as we have gotten so good at visualizing our spaces mentally. However, not everyone is great at visualizing, and at times practical factors like size and colours limit the scope of imagination. By allowing customers to have a preview of how a product would look in their spaces, you give them a sense of pre-ownership and better understand how much value it adds to their space. This would increase customer satisfaction and loyalty significantly.

IKEA – IKEA PLACE powered by Apple ARKit

IKEA is the undoubted multinational conglomerate known for its design and sells ready-to-assemble furniture, home accessories, kitchen appliances and more useful home décor and utility goods. The company was founded back in 1943, and it still holds its position in the market in 2021. They introduced the IKEA PLACE App back in 2017. This app is built on Apple’s new ARKit technology.

This AR-based app makes it easier for customers to make a purchase decision in their place by trying out different products, styles and colours in a real-life setting by swiping their finger on their smartphone. IKEA is one of the first home furnishing brands to bring immersive technology to its users, changing how people buy furniture.

Key Functionalities of IKEA PLACE

• Automatically scale products based on room dimensions (98% accuracy).
• See the texture of the fabric and how light and shadows render on your furnishings.
• Capture the setting as an image and share it with your peers.
• Purchase the product directly from the IKEA website.

How to Use IKEA PLACE

• This app works only on Apple devices with iOS 11 or above.
• Download the IKEA APP from the app store.
• Scan the floor of your desired place.
• Move, interact, orient the product into space as per your likings and preferences.

3. Virtual Stores

This would add a whole new level of intrigue to the online shopping experience. Creating online virtual stores or virtual showrooms can be an unmatched experience for your consumers. Imagine the resembling experience of visiting an actual showroom from the comfort of your home. This would include possibilities for a customer to interact with 3d products of a model, add them to a virtual shopping cart and walk around the virtual store.

Ralph Lauren – Beverly Hills

Ralph Lauren is one of the top American Fashion company that makes products ranging from mid-range to luxury segments. They have an impressive collection of apparel, accessories, home, and fragrances. Being a global fashion scene, they realize the need to leverage the latest trends to provide their customers with an immersive interactive experience. They named it RL-Virtual Store Experience. This new way of shopping allows customers to walk into the elegant world of their most iconic retail spaces spread across the globe in locations like – HongKong, Beverly Hills, New York, Paris and more, all from the comfort of their homes.

What’s next?

Whenever a new technology emerges in the market, there is a lot of speculation and curiosity around what comes next. People predict how this technology will change millions’ lives and what changes in this technology can be expected or are needed. The same was the case with smartphones where early tech experts assumed that smartphones are smaller and compatible phones since that stayed in trend during early 2010-2012 with smartphones like Sony Xperia Mini and more. However, with the direction we are moving now, companies focus on providing the biggest and tallest screen size on a smartphone to increase its value. Similarly, the world of AR is filled with speculations and possibilities. While we already see big companies make impressive AR use using virtual stores, virtual fitting rooms and more, we should always speculate what more is to come.

Here are some of the speculations we have for useful features AR could bring to its user in future –

1. Utilization of AR in navigation.
2. Remote assistance via AR
3. Augmented Reality in Automobile
4. Augmented Reality for Virtual Events

Do you have any other application of AR that we missed out on? Comment below and let us know!