Is AR the direction for retailers?

Augmented Reality (AR) is using technology to overlay digital imaging onto a user’s view of the real world.

I came across my first major experience with AR when I visited the Digital Art museum by teamLab in Tokyo earlier this year. The exhibition was a maze of fascinating displays of digital art. It definitely exposed me to the excitement and marketability encompassing AR. teamLab are in Melbourne right now, so check them out here.

A few photos I took at the Digital Art Museum

So how can AR bring value to retailers, especially clothing stores?

One method that is emerging is the ‘Smart Mirror’. This is a form of AR technology that allows consumers to try on clothing, make-up, jewellery and even eye wear, virtually. The aim of these mirrors would be to encourage online shoppers back into the stores by creating excitement and functionality with the technology.

It is well known that the online shopping is increasing, with research estimating that by 2025, at least of 35% of shopping will be online. Due to this, retailers are beginning to sublet or exit their existing unprofitable stores and move to smaller-footprint stores. With less room to showcase clothing on the floor, smart mirrors would be an economical method to display options to customers whilst still saving space.

L’Oreal has also launched an app called ‘Style My Hair’ that adopts similar principles to Smart Mirrors. The app allows users to change their hair colour digitally using live video, allowing them the ‘try before you buy’ experience.

Allowing users to trial the product and make a decision before they enter the store can be beneficial. In 2018, Australia retailers experienced $12.52bn AUD total losses due to customers prematurely leaving due to long lines. Customers knowing what they want beforehand could create less congestion in stores.

Do you think AR technology such as Smart Mirrors would be beneficial to retailers in Australia?

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13 Comments

  1. I think AI is nice to have but not entirely necessary for retailers unless it was an international brand that offered foreign consumers to virtually try on their products. Local stores in Australia would be overbearing if they installed AI because of their high accessibility and locality of stores.

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    1. Yep I think you make some great points. The Australian retailer market has become quite heavily influenced by the overseas market with brands like Zara, H&M and Uniqlo having a big presence. I think with reduced store size however, smart mirrors could be used effectively.

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  2. This sounds really cool, I’d never heard of it before, but I still don’t know how beneficial smart mirrors would be in store. I think personally if I’m making my way all the way over to a store I would want to try on the actual clothing under the assumption that it will be a while before AR will be a truly accurate reflection of how something might fit on different body types. That said, I think it can be really beneficial for an online consumer who might be able to download an app and ‘try it on’ with their phone from the comfort of their own home

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    1. Really interesting point that you’ve brought up. I’ve heard from others as well that they would still prefer to put on the clothing to see how it fits, to make sure that it’s comfortable and the fabric is nice. So in that sense, it may be a while before retailers really come around to smart mirrors. In saying that, perhaps when they become really efficient in terms of time-saving, they may become more popular. In terms of ‘try before you buy’ apps, I think there is currently a strong market and it should continue to grow. Thanks for your insight!

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  3. AI in relation to retail is an interesting thought. I think there will always be room for retailers as the experience of purchasing an item cannot be replicated by online shopping. I’m interested to see how the rise of AI and online shopping will change the dynamics of retail in the coming years. This blog has given some interesting insight. Love the work!

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  4. Yeah I think purchasing an item in store has the advantage of being able to try it on first. We’ve seen how quickly online shopping has changed the retail scene in Australia so I wouldn’t be surprised with how quickly AR could change the market once again!

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  5. What an interesting read! I find the improvements on AR or VR very impressive given the fact that they bring a whole nw level to experience. Like the smart mirror technology they invented, it makes shopping lives so much easier and so convenient.

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  6. AR is definitely something that businesses will need to consider implementing in order to remain competitive in the market. It’s increase in popularity in certain stores is a testament to that.

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