Auto Retail Bulletin: Augmented Reality, Virtual Reality and the Future of Retail

This article was written by Ciaran Bollard, CEO  of Kooomo, and edited by Jonathan Finlay

Augmented reality (AR) and virtual reality (VR) are shaping the future of retail, enabling shoppers to experience products and services online the same way they would in person, as well as improving communications, personalisation and efficiency. Retailers looking to create exciting shopping experiences must therefore adopt new technologies to bolster their eCommerce offerings, and consider the unrivalled power that AR and VR have to offer.

The impact on the wider retail market is best exemplified by research from Three Kit, which found that 100 million consumers used AR to shop in 2020 and that 71% would shop more often if businesses offered immersive technologies. 1 In fact, just as the pandemic has accelerated the development of eCommerce by around five years, the same can be said for AR and VR, by enabling customers to make confident buying decisions, which leads to increased satisfaction and strong customer loyalty.

So, let’s dive deeper into some of the most prominent technologies that are redefining the retail landscape, as well as the future outlook for these growing trends and what’s next on retailers’ agendas.

First and foremost, there is the virtual showroom, which is a great medium for showing highly detailed 3D models of products in AR and VR environments. Many sub-sectors are already taking advantage of this technology, including fashion and homeware with virtual changing rooms, try-on apps for cosmetics, and 3D placement for furniture and interior design. Essentially, the virtual showroom enables customers to try products or services from the comfort of their own homes, thereby increasing post-purchase satisfaction and reducing returns for “try-before-you-buy” purchases.

The Use of AR and VR at Home

We have also witnessed the rise of the at-home photoshoot since the start of the pandemic, which can be enhanced further with these technologies. For example, innovative technology has been introduced that enables retailers to test models’ poses before finalising the shot, as well as possible backgrounds and lighting. These same innovations can be applied to the likes of cosmetic, furniture and homeware brands, as well as automotive retail.

And finally, the next phase of AR and VR set to transform retail will likely be gamification, which is the application of game-design elements in non-game contexts. Features such as badges, levels, performance charts, scoreboards and in-game currency will be pushed to the fore, providing something exciting that will keep users engaged throughout their shopping journey. Ultimately, it’s not just about what you buy anymore, it’s also about how you are buying it, and this go-to-tactic will be the way forward for many retailers.”

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