How AR technologies can help retail

In recent years, AR technologies have taken a big step forward and started to change the retail business model. Already, over 62% of consumers prefer to shop with sellers using augmented reality, as it allows them to learn more about the product, and 40% of them are even willing to pay extra for this opportunity.

In this article, we will talk about the potential of AR technologies in retail, how exactly they are used in this segment, and also analyze several successful cases using well-known brands as an example.

Augmented reality is an interactive version of physical reality that is further enriched with digital elements such as images, sounds, or other signals. Essentially, AR combines the real world with the virtual, allowing merchants to interact more effectively with consumers.

Augmented reality uses smart hardware devices such as smartphones, tablets or AR glasses. With the help of computer vision and machine learning algorithms, they recognize objects of the physical environment and allow the user to interact with them in the virtual plane.

First of all, we need to talk about what the business gets from the introduction of augmented reality technology. Here we can highlight a few important points:

• Increasing awareness. Despite the fact that AR technology has already gained enough popularity, it is still rarely used in commerce. Accordingly, this gives retailers the opportunity to engage their audience and increase brand perception, giving it an innovative touch.
• Increasing engagement. Augmented reality is an interactive technology in its own right and offers users a deeper interaction with products and the storefront. As a result, this has a positive effect on the conversion rate.

• Reducing returns. AR provides the consumer with comprehensive information about the product through various multimedia tools: infographics, video, images and audio. Thus, when making online purchases, the user will have no reason to refuse the product after receiving it.
• Supply chain management. Augmented reality allows companies to get real-time data on stock balances and manage inventory more efficiently, which is especially important when working with perishable products. In addition, AR provides warehouse employees with the ability to track order packing and delivery information, which speeds up logistics and improves its accuracy.

There are several types of augmented reality. Therefore, we propose to consider what types of AR can be used in the retail segment:

• Marker based AR. Such augmented reality is created using image recognition technology. In this case, AR recognizes objects using preset markers, determines their location in space, and then superimposes the desired virtual image.
• Markerless AR. This kind of AR is more complex, because the device must recognize all objects located in the camera’s field of view. But at the same time, it gives much more flexibility and scalability. It uses time, accelerometer data and GPS to set the orientation.
• Location based AR. Based on GPS, it determines the user’s location and allows you to overlay visual images on various architectural objects.

Such augmented reality was used in the game Pokémon Go, and will soon be implemented by Google to create WebAR.

• Projection based AR. Projects synthetic light onto a flat physical surface to show details of 3D models. Moreover, such AR even allows you to interact with the projected image, as it is able to “understand” the actions of users. In fact, this gives retailers the opportunity to perform the presentation of goods using holograms.
• Path-based AR. Recognizes objects of the real world by their outlines (contours), and allows you to overlay AR images on them. As a result, the user gets the impression that he controls the physical environment with the help of a smartphone.

We propose to move from theory to practice and consider how augmented reality technology works in real markets and helps brands earn more.

One of the most striking examples is IKEA. She uses AR to let users “try on” new furniture in their own interior before buying. The process goes like this: the client finds the product he is interested in, selects the appropriate function and directs the smartphone camera to where he plans to put the furniture.

Thus, the company saved its customers from “unpleasant” surprises, increased their loyalty and, of course, increased sales.

By the way, a similar solution was implemented by the Canadian company EQ3, having developed a desktop application with the functions of “trying on” furniture. As a result, the number of the company’s clients, according to official data, increased by 429%.

Zeekit, recently acquired by Walmart, is using AR as a virtual fitting room. Everything is quite simple here – the buyer uploads his full-length photo to the application, after which he can see how this or that bow will look on it, including in combination with other things. Interestingly, users use this solution not only online, but also in offline stores.

Another example is L’Oréal Paris. Cosmetics brand uses AR to visualize makeup.

Examples of global brands clearly demonstrate how augmented reality technology increases the profitability and efficiency of companies in the retail segment. And while AR has not started to be used everywhere, the feasibility of investing in its implementation is the most cost-effective.

AVADA MEDIA has experience in developing AR solutions and is ready to provide already formed teams of specialists for the implementation of such projects. We’ll help you determine the best use case for your business, develop an innovative application, and help bring it to market.