Statistics About AR in Retail Industry and e-commerce Solutions
AR has a huge potential in sales. Below-mentioned statistics about AR in retail and e-commerce will blow your mind and make you use it for your business to use AR in your online shopping app(s):
- As per the survey revealed by Centric Digital, around 60% of Furniture buyers, 55% of clothing, 39% of grocery, 35% of shoes, 25% of makeup, 25% of jewellery, and 22% of toys’ buyers would like to shop via AR. (note: though the data is a bit old, referencing the same, we can predict that the data must have increased a lot.)
- To date, around 5% of retailers are using AR to elevate their customers’ shopping experience, but more retailers are in queue to embrace this trend in their e-commerce software solutions.
- Also, AR-enabled products are likely to get 200% more attention and engagement compared to other non-AR equivalents. (Forbes) This results in a 40% increase in sales conversions.
- Around 62% of consumers prefer to buy from retailers that are embracing AR as it helps them to know more about the product – more like generating a trust factor.
- In fact, around 40% of consumers are ready to pay more if they are getting an AR shopping experience from the retailer.
- Japan, the leading country in AR adoption in retail stores since 2009. And around 66% of consumers demand for AR experience in more offline retail stores, offering AR experiences for easy navigation and seeing potential product pairings.
- As per Statista’s study on consumers from different countries buying products online using AR technology by 2025 – there are around 45% of consumers from Saudi Arabia, 42% from the UAE, and 28% from the USA are expecting to use AR technology for their online shopping experience. See the below graph for a detailed view:
What is Augmented Reality (AR)?
Augmented Reality is a technology that takes the help of smart hardware devices, like smartphones, tablets, or Smart Spectacles/AR Glasses, to get overlaid digital information about the real-world product you see through the lenses of any of the mentioned smart devices equipped with AR functionalities.
But have you wondered what technologies provide AR the power it holds?
AR technology extensively uses computer vision and machine learning algorithms for image recognition and tracking real-time user environment. This places real-world objects virtually the way users can engage with a virtual feel, like holding them as an element of the physical environment.
Potentially, AR shifts the way we interact with the world around us with the seamless integration of digital information with our physical environment.
AR Types That Can Be Implemented In Your E-commerce Solution
Many experts also refer to these types as the AR application, like an AR functionality, which you may want to add to your e-commerce solution. So, let’s not test patience of your curiosity and take a jump in to know about them:
1. Marker-based AR
Marker-based AR type uses a camera and a black-and-white object pattern or image as a visual marker to overlay 3D digital content in the real-world environment. Here, the marker is recognized by the AR system employing computer vision algorithms.
Here, the AR application with access to the camera has to scan continuously to put focus input and let the marker recognize the image pattern for the geometry creation. But in the case of fluctuating camera focus lines, the visual object might not be seen.
2. Markerless AR
As the name suggests, it’s a type of AR that uses computer vision and machine learning algorithms to identify and track real-world objects, shapes, colors, textures, and motion, at the focus of the camera without any specific visual markers.
Markerless AR analysis employs Simultaneous Localisation and Mapping (SLAM) to analyze the environment and place right-fit maps to include 3D virtual objects. The best thing about this is that the placed 3D visual objects on the map will not move even if it isn’t in the user’s view field unless you do it by yourself, along with it eliminates the need for scanning new images.
It can even detect objects and their characteristics without having prior knowledge about the same, as it combines computer graphics and real-world images to understand the environment.
But the main challenge of such AR applications is gathering and managing data and also asking for the algorithm to execute the heuristic learning process.
Location-based AR
Simply put, Location-based AR uses the user’s physical location through GPS, camera, and other sensors to overlay digital content nearby onto the real world. It once asks for capturing the surroundings, such as landmarks, roads, etc., so that AR applications can precisely align digital content with the real-life environment.
Examples of location-based AR applications are Pokémon Go, Ingress, and Wizards Unite. And Google is also in-line to use location-based AR to build a WebAR named VPS (Visual Positioning System) – a successor of GPS (Geographical Positioning System) to improve Google Maps user experience.
Projection-based AR
Projection-based AR refers to the system that projects the synthetic light onto the flat physical surface to showcase 3D image details. It even understands human interactions with the projected augmentation using the SLAM model. You can even create holograms using this AR type to make your offline store customers have a fun and story-guiding experience.
Ring any bell? ? Exactly, just the way, robust stark works with JARVIS – AI and AR technology!
This is what projection-based AR would look like!
Overlay AR
Overlay AR refers to an application overlaying the digital content on the mobile screen as it is a part of the real world.
Contour-Based AR
This type of AR focuses on the real-world object‘s contours/borders/edges to detect and track them to overlay their digital content onto those objects. Also, it shows the image/illustration of the digital content in such a way that creates a vibe like it’s actually interacting with the physical environment.
Architecture of AR For E-Commerce Solutions
AR architecture varies through the functionality you want it to perform. Though several architectural components are a must to consider, including User Interface (UI), AR Engine and Gadgets, Client AR Application, Core e-commerce systems (CMS, SRM, ERP, PIM, etc.), and most importantly, the Backend (Database of metadata, 3D models, and other coordinational, navigational data, etc.
At MindInventory, we will first understand your retail business operations and the legacy software solutions you use to help you create an AR-powered e-commerce platform with a total SaaS integration solution to help you enforce centralized management across the business.
Top Benefits of Implementing AR In E-commerce
As you now know the AR architecture for your e-commerce/online shopping application, you do have this curiosity to know ways AR can be helpful for your e-commerce business. Here are a few benefits AR can offer if implemented in your online shopping application:
Support in Brand Awareness Campaigns
Augmented Reality (AR) in e-commerce, this phrase per se has a tremendous impact on users, which develops their curiosity to explore more. It helps you as a retail business to set up higher brand perceptions and append greater marketing prepositions.
The early adopters of AR in their e-commerce solutions have agreed on its giving a boost to their brand, giving it a modern, innovative, and interesting touch.
Consumers that have experienced the AR functionality in their online shopping process are more likely to go back and experience it frequently. It also creates a positive point for the company taking care of consumers, which builds up brand loyalty and customers’ inclination to buy from your e-commerce platform.
Reach New Customer Base
The BUZZ – well, it ain’t a bee buzz!! Jokes Apart! Buzz is the key to gaining attention in this picky world, and following the trend will help you a lot! AR itself is a trend, a WOW factor for all age groups of generations that catches the eyes you need for the online presence of your retail business.
Once implemented AR features and functionalities in your e-commerce platform, you can create a buzz about it across the target audience by creating innovative, engaging, interesting AR marketing campaigns. And this way, you’ll get the attention of more new consumers regularly.
Reduces Product Return Rates
With conventional e-commerce, you can provide all possible information through multimedia use, such as written information, images, infographics, and videos, but AR has its unique charisma over everything. AR adds up a layer of real-world engagement-like feeling with a TRY-ON feature, even while sitting in a place oceans apart.
It offers realistic 3D object views and overlays 3D content about the display product that creates a great impact on the user’s experience. This only offers users every detail about the product with an immersive experience and persuading impact but also drives sales with reduced product return rates as they check the product visually from every angle.
So, the order-return cases become narrowed down only in cases like similar products at a reduced rate, damaged products, sudden change of mind, etc.
Enriched Customer Experience and Engagement
AR per se is interactive, making your target customers drop by your online shop to get hooked up until they check products entirely for what they came in.
As a retail business with an online shop, what else do you want apart from customers spending more time on it? It is an opportunity to get conversions as it builds a new business-customer relationship and creates chances for them to visit your online shop again!
Unlocks Next-Level Personalization
As today, modern users want to see everything according to their preferences, and the deadly combination of AR with AI takes this personalized shopping experience to the next level. As per the Statista survey, there will be 1.73 billion active mobile AR user devices around the world globally by 2024.
Undertaking this study, retailers must employ this feature to take their e-commerce business engagement with customers to the next level.
Effective Supply Chain Management
By implementing AR in an e-commerce app, there are several potential benefits for you to unlock in the supply chain management sector. It allows getting real-time data on inventory levels and locations to make informed decisions about replenishing stock to get streamlined inventory management.
In addition, it provides real-time updates to the warehouse staff regarding the order packaging and shipping, which results in improved accuracy for more efficient and accurate order fulfilment.
In short, it reduces more dependencies on the retail and supply chain teams and time-taking inventory analysis processes. It covers up for the time, space, and human-effort requirements for better retail business operations depending on the supply chain.
