Virtual eCommerce transformation - Redefining personalization across various retail sectors.
The last few years have been a breakthrough for the eCommerce sector. From live shopping to virtual stores and augmented reality, technology has enabled retailers to deliver an authentic and interactive shopping experience from anywhere. Consumers can try products virtually and see them from every angle; the traditional brick-and-mortar stores have virtual versions online, where retailers can track their customers' preferences.
How does virtual eCommerce transformation help with personalized shopping?
77% of AR users said they use it to see product differences, such as possible variations of colors and styles. AR allows them to do this up-close, at different angles, and in their own space.
Jeff Bezos explained, "If we have 4.5 million customers, we shouldn't have one store. Retail personalization must ensure that every shopper can have an extraordinary journey according to taste.
Tech advancements in retail have taken the personalized shopping experience to a whole new level. AR and VR is a gamechanger for personalization in the sectors like apparel, furniture, and beauty.
According to Shopify, interactions with products having AR content showed a 94 percent higher conversion rate than products without access to AR previews.
Let us see what the statistics look like for the retail brands that use these technological advancements to their benefit.
Clothing & Virtual e-commerce:
BigCommerce co-founders Eddie Machaalani and Mitchell Harper two years ago wrote, "By 2022, brick-and-mortar retail spaces will be little more than showrooms."
Today, the prediction remains true. Shoppers are no longer limited to interacting with brands through physical stores alone, especially in the fashion industry. For instance, shoppers who used AI features to try on clothes virtually at Macy's and ASOS were five times more likely to purchase. As a result, return rates dropped from 38% to approximately 2%. According to Statista, fashion e-commerce accounts for roughly 23% of total online retail sales in the United States and will continue to experience steady annual growth in the coming decade. By 2022, US retail e-commerce revenue from the sale of fashion apparel, footwear, and accessory products will reach $205 billion; by 2025, the online fashion retail sector could be responsible for almost $300 billion of sales.
Furniture & Virtual e-commerce:
Revenues from online furniture sales in the US added up to $132.7 billion in 2021 and are estimated to cross $208.2 billion by 2025.
With Augmented Reality technology, customers can place a true-to-scale 3D model of their favorite products in their space to accurately understand how they will look without leaving the comfort of their own homes. It's an entirely new way to "try" furniture before buying. Retailers like the IKEA Place iOS app, Amazon, and Target have introduced these features for their customers. Studies show that 66% of consumers want to use augmented reality as a tool for shopping, and 60% of US online customers like exploring 3D furniture models before buying them. The passage of AR by online furniture retailers has increased ever since its pandemic.
Jewelry & Virtual e-commerce:
Augmented reality technology has brought about a whole new wave of opportunity for jewelry companies. It gives customers a chance to try-on new designs in real-time, right from their device - as if they are looking at something in person. According to the latest data, there will be approximately 1.7 billion users of mobile AR worldwide by 2024. Indian and global brands like Tanishq, De Beers, Kalyan Jewelers, Hazoorilal Legacy Jewelers, Tacori, Pandora, and Boucheron have incorporated virtual try-on on their websites.
Beauty & Virtual e-commerce:
According to a new market research report published by Global Market Estimates, the Global Augmented & Virtual Reality in Cosmetic & Beauty Market will grow at a CAGR value of 25.5% from 2022 to 2027. Luxury beauty brands like Chanel, Bobbi Brown, Mac Cosmetics and Sephora have already moved towards augmented reality to let their users try various products in seconds.
It is imperative that In a world that is always online, the future of retail is progressing at an exponential rate thanks to personalization in virtual e-commerce.