How Augmented Reality can transform your Retail business

May 21, 2018 | Aravindhan Anbalagan - Augmented Reality

Augmented Reality (AR) merges digital world and the real world by reducing the ‘imagination gap’ that buyers have while shopping online. This fascinating technology provides an opportunity for consumers to experience the product virtually and help make decisions quickly.

Augmented Reality breaks the geographical barrier and the need for a physical store for increasing sales. Shipping costs in product returns can be drastically reduced because buyers can virtually experience a fully finished product in AR before buying.

Some retail numbers are mind-boggling

According to Invespcro, an amount of $2.4 trillion is estimated to be spent online in the coming year which sums up to 8.8% retail expenses for 2018. The growth has been substantial in the past couple of years. The estimated online retail sales worldwide (in trillion) have grown up from 5.9% in 2014 to 8.8% in 2018.

At least one out of four online shoppers do online shopping in a week. In the United States, online retail spending will likely be 8.9%. The average eCommerce revenue by the online shopper is $1804 in the US, the highest amongst other countries including UK, Spain, France, Brazil, Japan, and Sweden. Customers in the age group of 30-39, are the highest in online shopping frequency. They shop at least once a week. As per Statista, AR in retail will hit $31.5 million by 2025.

Demand for AR in retail is strong

Research by DigitalBridge in September 2017 states that 41% of consumers expect augmented reality in reality and one out of three shoppers would likely make purchases after experiencing products in augmented reality.

With significant demand for AR technology in retail, the retailers, on the other hand, have not lived up to the consumers’ expectations. In fact, 75% consumers expect AR technology to display products on the retailers’ website.

AR technology will go mainstream

A majority (51%) of shoppers think that retailers have not taken full advantage of the available AR technology in improving the shopping experience. The availability of ARKit by Apple and ARCore by Google can help make faster progress in incorporating this technology.

In retail, brands like American Apparel and Ikea are known to have used AR technology for a couple of years, but there is an untapped market potential out there. These companies invest in AR to enhance their in-store experience while bringing the same in-store experience in customer’s homes.

Grab the opportunity before it’s gone

Digital buyers penetration is as high as 47% of the total internet population. With increasing competition in the online marketplace, providing innovative shopping experiences is the need of the hour.

And there’s no better tool than Augmented Reality. Now is the right time to revolutionize the shopping experience of your online shoppers with AR. With AR, online customers can quickly get to know the product better and make buying decisions quickly. Leverage on Augmented Reality and provide unique product visualization to customers.

At Morton, we offer a wide range of AR solutions in various industries including Retail, Manufacturing, Enterprises and Home Decors. We go beyond delivering unique customer experience and drive workplace collaboration. We provide an omni-channel experience and in-store AR experience to achieve higher conversions and lower product returns.

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