How Augmented Reality in Retail is Changing the Landscape
We’ve heard a lot about AI (Artificial Intelligence) in recent years, but another cutting-edge piece of technology that’s revolutionising the retail sector is AR, or Augmented Reality. Read on to discover how augmented reality is transforming retail in Australia and New Zealand, how AR works, and why AR might be the future for your business.
Let's talk about how AR technology enhances customer interactions with online purchases, and offers a more practical and engaging shopping experience.
AR brings the in-store retail experience home
Imagine, for a moment, being able to try on new clothes while at home, or using a spray gun for the very first time without having to visit the hardware store for a hands-on product demonstration. With AR, these scenarios are no longer science fiction. AR technology allows you to see how these products will look or perform in real world settings before making a purchase.
A prime example is painting the walls of your home. With Augmented Reality, you can experiment with different paint colours to see how they’ll look in your living room or bedroom. This way, you can keep trying colours until you find the right one. This ensures you make the right choice without needing to buy sample pots.
By bridging the gap between e-commerce and physical retail, AR creates a seamless omnichannel experience. It enables online shoppers to see, interact with, and feel confident about their purchases, significantly reducing returns and boosting satisfaction.
Incorporating AR into your business strategy not only builds customer trust but also creates a unique competitive edge. To boost the confidence of your customers when considering products, and reducing the likelihood of returns, AR technology is a big help.
How does AR technology work?
AR works by adding virtual images or objects on top of what you see in the real world. This happens through devices like smartphones, tablets, or special glasses that can "see" your surroundings.
To make the virtual objects look like they belong in the real world, AR carefully tracks and maps the space around you. This creates a smooth and interactive experience, where the digital and real worlds come together seamlessly.
Retailers are investing in AR technology
Major retailers in Australia and New Zealand are already investing in Augmented Reality technology. The aim is to provide customers with innovative and interactive product trials. These immersive experiences are helping brands build trust with shoppers and bridge the chasm between online and in-store purchases.
For example, Kmart Australia uses AR to let customers see how furniture from their store would look in their homes. This approach makes shopping more engaging and helps shoppers feel confident in their choices.
As AR technology continues to advance, we’re likely to see broader adoption in the near future. Businesses that invest in AR now will position themselves as industry leaders, ready to meet the demands of tech-savvy consumers.
Advantages of AR technology
Improve customer engagement and loyalty
AR enhances the shopping experience but it also creates deeper customer engagement. It achieves this by offering unique and immersive experiences. Now retailers can capture the customers’ attention and gain an advantage on their competitors.
Gamified shopping is an example of this, where AR-based games and challenges encourage customers to interact with brands in fun and memorable ways.
Improve personalised recommendations with AR tools, as they can analyse customer preferences and provide tailored suggestions. This creates a highly-personalised shopping experience.
Streamline operations and reduce costs
Beyond customer-facing applications, AR is transforming the backend of retail operations.
- Inventory Management: AR helps employees locate products in warehouses, speeds up inventory checks, and simplifies restocking processes.
- Employee Training: AR-based training programs provide realistic, hands-on learning experiences. They improve skill development and retention while reducing the need for physical resources.
Does AR present any challenges?
Implementing new technology will always come with some challenges. For instance, AR can have high development costs, technical complexities, and the possible need for customer education to get the most out of it. However, AR is becoming more accessible and affordable, so these challenges will diminish exponentially.
Is AR the future for your business?
Is AR something your business is exploring in 2024? At Fit Merchandising, we are particularly interested in using AR to train team members at the store level. The possibilities are exciting, and the potential for growth in retail and beyond is enormous.
Along with assistance in adopting AR technology, the core of our business is our professional retail merchandising services. We’ll display your products to maximise brand awareness and increase sales. Contact us today for further information.
