Augmented Reality Retail Shopping: A Future of Immersive Shopping

Augmented reality is reshaping the retail industry by offering ideal shopping experiences that cater to modern consumers’ demands for convenience. Through AR, shoppers can virtually try on clothes, experiment with makeup, and visualize how furniture will look in their homes, all without stepping into a store. This technology bridges the gap between physical and digital shopping, allowing customers to make more informed purchasing decisions while enjoying an immersive and interactive experience. Retailers are increasingly adopting augmented reality retail shopping to enhance customer engagement, streamline shopping, and reduce product returns. According to the Snap Consumer AR Global Report, 100 million customers already use AR in-store and online shopping. Additionally, 94% of them plan to use AR just as much, if not more, in the coming year. This growing trend highlights the increasing importance of a professional augmented reality development company in enhancing consumers’ shopping experience.

What is Augmented Reality Retail Shopping?

AR enables brands to captivate customers by turning static objects into interactive, animated visuals, as seen in Walmart’s superhero-themed AR displays. This not only entertains shoppers but also drives traffic to physical stores. AR is also an effective educational tool, with brands like Toyota and Hyundai using it to showcase product features and guide in-store navigation, helping customers make informed decisions.
Augmented Reality in retail plays a crucial role in product evaluation by allowing shoppers to visualize how items will fit into their personal spaces before making a purchase. For example, the Ikea’s Place app helps customers see how furniture looks in their homes. Similarly, AR enhances post-purchase experiences, with brands like Lego and McDonald’s offering interactive and educational elements through AR apps, enriching how consumers interact with their products after buying them.

AR in Retail is Growing Fast

According to Custom Market Insights, the global augmented reality (AR) market for retail is expected to grow from USD 4.2 billion in 2024 to USD 62.3 billion by 2033. This growth is driven by the increasing popularity of online shopping, which lacks the physical interaction of in-store experiences. AR helps bridge this gap by offering interactive virtual try-ons and product previews. Advancements in face and spatial recognition, combined with WebAR, are making these experiences more seamless and accessible. As a result, more brands are transitioning from static websites to interactive platforms.
Major tech companies like Amazon, Facebook, and Apple are investing in AR solutions, while retailers like Ikea and Nike have already introduced AR tools for their customers. This shift enhances the online shopping experience, particularly in categories like clothing, makeup, and furniture, where product fit is crucial. As shopping in augmented reality becomes more accessible through smartphones and other devices, its role in online retail is expected to grow, creating a more immersive and seamless shopping experience.

Augmented Reality Retail Shopping: The Benefits

1. Boost in Sales

Augmented reality (AR) makes the shopping experience faster and more engaging. Instead of waiting in long lines for fitting rooms, customers can virtually try on clothes or see how furniture fits in their spaces. This reduces the time spent shopping and increases store conversions, whether online or offline. By allowing customers to visualize products in real-time, AR helps them make more confident purchase decisions, leading to higher satisfaction and fewer returns.
AR also improves sales through personalization. It can suggest product recommendations based on individual preferences and enable customers to customize items by selecting colors, sizes, and features. For instance, customers can use AR to preview furniture in their homes or create personalized products with custom designs. This level of interaction fosters a deeper connection between customers and products, as seen in Porsche’s AR feature, which allows buyers to personalize their car models virtually. This personalized experience ultimately drives more sales and loyalty.

2. Improved Customer Experience

Shopping in augmented reality combines the fun of traditional retail with modern convenience. It eliminates long lines and overcrowded stores, providing more enjoyable and hassle-free shopping.
AR also helps customers by giving them quick access to detailed product information. Shoppers can superimpose digital information, like product details, prices, and customer feedback, onto tangible items instantly. This allows for more informed purchase decisions, giving customers confidence in their selections.

Additionally, AR allows customers to explore product variations, like colors and sizes, even if they aren’t physically available in-store. With smart devices or in-store kiosks, shoppers can view 3D models of different versions of a product, ensuring they find exactly what they want without limitations.

3. Increased Customer Engagement

As retailers aim to enhance in-store experiences, augmented reality (AR) offers a creative solution to boost customer engagement. AR’s interactive nature sparks curiosity and captures attention, with Snap Consumer AR Research showing it delivers nearly twice the visual attention of non-AR experiences. This leads to better memory retention and stronger responses from consumers.
Additionally, data gathered from AR retail shopping experiences provides valuable insights. This data not only complements existing information but also opens new opportunities for retailers to understand and engage their audience.

4. Reduced Returns

Online shopping returns are significantly higher than in-store purchases. With more customers shopping via mobile devices, interest in augmented reality (AR) is growing. A Google study found that 66% of customers want to use AR to visualize products before buying, helping them make better-informed decisions.
Augmented Reality retail shopping reduces returns by 25% by allowing customers to see products in a real-life context, like placing furniture in their homes or trying on clothes virtually. This increased confidence leads to fewer returns and encourages higher-value, multi-item purchases.

5. Reduced Expenses

AR apps provide detailed product information and assist with store navigation, minimizing the need for human shop assistants. This technology also replaces traditional in-store displays, eliminating the need for expensive physical installations while offering an interactive shopping experience.
Additionally, AR reduces product photography costs by allowing customers to explore a variety of products virtually, without requiring physical stock. This saves space and optimizes resources. Customers can view items digitally as seen in furniture stores, streamlining operations and improving customer satisfaction.

Applications of Shopping in Augmented Reality

1. Space Visualization and Virtual Tours

AR technology allows customers to explore a store or property virtually before visiting in person. This provides them with a sense of the space and important details beforehand, making their visit more efficient and informed.
For example, AR retail apps like Magicplan help customers visualize home renovations by offering a virtual walk-through of the redesigned space. Similarly, British retailer Marks & Spencer (M&S) launched a wayfinding app in 2022 called List&Go. Through the app, shoppers could enter their shopping list and receive a route around the store using their smartphone.

2. Virtual Try-Ons

Virtual try-ons are widely used, allowing customers to see how clothing, accessories, or cosmetics would look on them without physically trying them on. This feature, popular on social media platforms, enhances the shopping experience by offering a more personalized and interactive approach.
L’Oréal has integrated AR into its retail strategy, offering virtual try-ons, skin shade assessments, and skin diagnostics. This technology boosts customer confidence by providing realistic previews. It also saves time and offers convenience for both retailers and shoppers by simplifying the try-on process without needing staff assistance.

3. Color Matching

Augmented reality shopping apps are popular for color matching, helping users create the perfect palette for rooms or outfits. For instance, the Dulux Visualizer app allows customers to select new wall colors for their homes, while the Prestige ColorPic app lets users choose the ideal shade and instantly order it from Amazon, simplifying the decision-making and purchasing process.

4. In-Store Displays

To enhance the in-store experience, some brands are introducing AR displays that offer interactive shopping features. For example, Kate Spade’s AR displays allow customers to design personalized bags with various accessories. Similarly, Charlotte Tilbury uses AR mirrors that let shoppers see how different lipstick shades and makeup will look on their faces, providing a fun and engaging way to try products.

5. Large Products Shopping

AR retail apps are particularly useful for shopping for large items like furniture. Instead of guessing how a piece will fit in its space, customers can use AR apps to visualize exactly how it will look. While Ikea is well-known for this, other furniture brands offer similar innovative solutions.
For example, the Homestyler app allows users to design their rooms using real-life dimensions, and Decor Matters combines AR and AI to visualize room designs. In the automotive industry, BMW uses AR to help users explore car models and configure parts.

AR is Here Today and Here to Stay

AR technology is here to stay, with consumers increasingly expecting more engaging and convenient shopping experiences. As AR continues to grow in both in-store and e-commerce spaces, brands are using it to offer personalized experiences where customers can visualize products before purchasing, benefiting both retailers and shoppers.
In the future, AR will focus on blending fun with functionality, offering immersive experiences that include gamification and interaction with favorite characters or celebrities. While AR in retail is becoming common, developing high-quality, secure, and interactive AR apps still requires skilled developers to ensure a seamless and enjoyable user experience.