Augmented Reality: Giving the World of eCommerce an Unreal Boost.

Augmented Reality: Giving the World of eCommerce an Unreal Boost.

According to Market and Markets, the Augmented Reality market is projected to reach USD 72.7 billion by 2024, with Facebook, Intel, Qualcomm, Alphabet, Comcast, and Samsung already heavily invested in the market. AR technology is powering innovation in research, education, engineering, and medicine, but is becoming a major trend in eCommerce.

Gartner estimated that 100 million users will shop with AR in-store and online by the end of 2020, and CitrusBits concluded that there will be 3.5 billion augmented reality users by 2022. This growing popularity among consumers has led to a big boost in profits for forward-thinking sellers.

After L’Oréal acquired augmented reality beauty company Modiface, they were able to triple conversion rates when using the technology to showcase products. L’Oréal then permitted outside platforms to use their proprietary AR technology, following a surprise strategy Gartner summarized in its report.

In addition to amping up digital assets with augmented reality, L’Oreal has begun to allow third-party platforms like Facebook, Instagram, WeChat and Tmall to also use the technology, not only to promote L’Oréal products but those of rivals brands. Given the fact that the company invested heavily to gain ownership of the technology, giving rival brands a boost might seem like a surprise. But doing this earns L’Oréal a small return and could elevate it to a higher authority for many beauty brands. Furthermore, Amazon has become the latest retailer to embrace L’oreal’s new look.

The reward for eCommerce retailers incorporating this technology is two-fold. Not only does AR give sellers the ability to engage with consumers in a highly effective way, it also provides another source of insight, allowing merchants to analyze metrics and tailor their offerings to each customer.

A USA AR Retail report analyzed the impact of augmented reality in retail, concluding that:

• 72% of customers purchased items they didn’t plan to buy because of augmented reality.
• 71% of customers shopped more when they used AR.
• 61% preferred stores with AR experiences.
• 55% say AR makes shopping more fun.
• 40% are ready to pay more if they test products with AR.

For many retailers, investing in AR has proven to be a strategy worth pursuing. In September 2019, Ikea rolled out an extensive update to its Place App, allowing users to access collections and decorate their rooms with multiple pieces of Ikea furniture at once. The previous release only offered the option of placing one item at a time, so the expansion seems to indicate Ikea is seeing a return on its investment in immersive technologies.

Additional retailers who are expanding their AR investments in 2020 include Sephora, Amikasa, Tap Painter, Quiver, and many others.

Adding an AR app to your eCommerce strategy is an excellent way to boost engagement and deliver valuable experiences to your customers. We’ve helped businesses to create and develop AR apps that both captivate and educate their users. We’ve helped doctors treat patients using AR tools, and businesses to showcase their products in new and exciting ways, and our team is ready to help with your next AR or eCommerce project.

Using EndPoint Modeling, we can create the dynamic interactions and user experiences that fulfill your vision, with the budget and successful delivery criteria of your project contractually guaranteed. Would you like to know more about how the EndPoint Modeling approach to custom software engineering can simplify your next project? We invite you to schedule a discovery call with us, so that we can listen, understand your objectives, and provide insight into how we can help.

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