Growth Trends 2023: ‘Try it on’ commerce is here to stay

Yara El Saadani, Ecommerce Precision Director 

When you hear the words ‘artificial intelligence’ (AI) or ‘augmented reality’ (AR), the first thing that might come to mind is the 1982 classic Blade Runner— a world of superhuman robots and flying cars.

However, when it comes to commerce, it is less about human-like robotics guiding you in store and more about technology and data-driven shopping alternatives.

AI and AR can help today’s retailers deliver an optimised customer experience online and offline by using collected business and customer data to make better business decisions.  Due to the pandemic, focus on ecommerce has grown tremendously and we have seen a switch to a hybrid shopping model, so retailers need to be different in their proposition to stand out from the crowd. AI and AR can do just that.

MarketingDive states that 18% of global retailers currently use AR innovations in their business model, which includes giants such as Macy’s, IKEA, and Adidas. As well as this, a further 32% are either planning to implement AR or are in the process of doing so in 2023.

• It is key to stay open-minded to the possibilities this trend can offer. For example, the beauty and cosmetics company, Ulta, recently integrated an AR-powered virtual try-on feature that lets users try products in real time before purchasing. This enabled the brand to increase sales, decrease the return rate, and skyrocket user engagement by 700% .
• Even one of the hardest audiences to target are buying into it. Based on a Satista study in February 2022, Gen Z shoppers were the most interested in AR shopping experiences. More than nine in ten Gen Z respondents were willing to see what a piece of furniture or decoration would look like in their home using AR.
• An AR statistics study revealed that immersive virtual try-on features help brands to decrease their return rate by almost 30%.

Thanks to AR technology, customers no longer need to visit offline stores to find out if an item of clothing fits, for example. Now, users can seamlessly try on clothes and appliances, and even match desired furniture objects to their bedrooms or kitchens. Two in three customers say they would buy more products if they used AR.

Nike, for example, was able to cement its position as a global brand and a pioneer in marketing with its AR app. To help customers find their perfect size, Nike introduced an AR tool that uses your smartphone camera to scan your feet and tell you the exact size you should go with, together with a clear call-to-action to purchase the product then and there.

And in the US, retail giant Walmart launched a new online tool to help shoppers virtually try on apparel before purchasing. The feature is accessible across both its website and app, allowing customers to upload photos of themselves and use the pictures to visualise how clothing items would look on them. Once a customer saves an image, they can use it to view themselves as the model each time they use the virtual try-on tool. The data attributed from the try-ons will also enhance their personalisation to users within suggested products, cross-sell and up-sell opportunities.

It is clear that ‘try it on’ commerce is helping brands grow.

The growth opportunity:

When adopting ‘try it on’ commerce, instigating a two-way conversation between consumers and brands is the key to growth.

Personalisation is vital – according to research by McKinsey, only 15% of surveyed retailers say they have fully implemented personalisation across channels, creating an opportunity for brands to have a two-way conversation with consumers. According to research by David Kirkpatrick, 71% of TV watchers prefer personalised ads, so why not replicate that online by using already available data such as seasonality, purchase behaviour, life stage and demographics to push the personalised messaging? McKinsey omnichannel personalisation research showed that there’s a 10-15% uplift potential in revenue and retention from omnichannel personalisation strategies, so we know consumers love it.

Using learnings and insight from AI and AR campaigns can also push for more strategic campaigns and even impact wider advertising and stock plans. For example, if users are inclined to try on the electric blue sandal model in the month of May, this can imply what level of stock is needed to prepare for influx of sales, supporting the trend that users are buying for summer months earlier in the year.

The ecommerce industry has long faced difficulties such as restricted reachability, poor end-user feedback, inaccurate search results, a lack of customer trust, little to no customisation, and an inability to replicate the in-store experience. But AR and AI can help to solve these issues in the long run. Brands could, for example, incorporate chatbots on AR or AI tools for direct user-to-business feedback and assistance; integrate real-time reviews from past consumers to enhance customer trust; or recommend other comparable products as is possible in in-person experiences, to name a few.

3 things to do today:

Recognise that the future of shopping is virtual.

We know from research by McKinsey that 68% of customers would spend more time online if the brand included AR and 40% would buy more expensive products (UK). So, get in a room with your creative, sales marketing teams and Wavemaker, to get the conversation started on how best to leverage this trend ahead of the competition.

Find out what competitors are and are not doing in this space.

Understand the opportunity that is bespoke to your brand and category. It is key to keep an open mind when looking into this space as AR and commerce can come hand in hand, even if it might not seem like it from the outset.

Investigate the best-in-class AR partners and get them business-approved.

There are a wealth of tools and technology partners that are launching a commerce AR proposition. With so many in the market, it is key to select two or three that can go through approvals on your side. Ensure they provide end-to-end services, from reporting to best practice guidance.

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