Try it on(line)

‘Try it on(line)’. The use of AI and AR in the retail industry is poised to grow, with nearly 20% of retailers using AR and a further 32% are either planning to implement the technology in 2023. It is transforming the customer experience both online and offline. An example of a great use of AR are immersive virtual try-on features. These lead to increased sales, decreased return rates, and higher user engagement. Younger generations, particularly Gen Z, are receptive to these technologies, and retailers who incorporate AR and AI into their operations can gain a competitive edge.

This trend originates from the report:

Wavemaker UK - Growth Trends 2036

AI and AR are no longer just sci-fi concepts, they are changing the retail industry. By leveraging technology and data, retailers can offer customers an optimized experience both online and offline. With the pandemic shifting the focus towards ecommerce, retailers need to differentiate themselves, and AI and AR can help.

Currently, 18% of global retailers are using AR, and another 32% plan to implement it in 2023. Ulta, a beauty and cosmetics company, saw a 700% increase in user engagement and decreased their return rate by integrating an AR-powered virtual try-on feature. Gen Z shoppers, one of the hardest audiences to target, are also buying into the trend, with over 90% being willing to try AR shopping experiences.

Immersive virtual try-on features can decrease return rates by almost 30%, and two in three customers say they would buy more products if they used AR. With 68% of UK customers willing to spend more time online if the brand included AR and 40% willing to buy more expensive products, it is time for retailers to recognize the future of shopping is virtual and start leveraging this trend ahead of the competition..