Table of Contents
Introduction
The rise of mixed-reality experiences through augmented and virtual reality (AR and VR) has been evident across industries in recent years. A notable example of this is AR and VR in healthcare, which a previous article reported to be worth approximately USD 3.3 billion in 2023.
By offering immersive experiences that combine digital data and physical environments, AR and VR can help healthcare professionals enhance their field of vision and precision during surgical procedures. These technologies can also optimize implementation costs for more effective medical training, more accessible care, and improved patient outcomes. As a result, the incorporation of AR and VR hardware and software into healthcare settings is poised to grow by 19.1% and reach USD 19.1 billion by 2033, with North America particularly dominating regions with its 51.9% market share.
However, beyond healthcare, AR experiences are also being leveraged in consumer goods and retail industries, particularly eyewear, footwear, and fashion. Below, we investigate the growth of AR adoption in retail and shopping and highlight specific use cases that boost customer experience and satisfaction in said industries.
Augmented reality in retail
Like AR and VR in healthcare, global AR in retail markets has grown into a billion-dollar industry, reporting a market value of USD 4.2 billion in 2024. Innovative AR technologies have been particularly beneficial in meeting customers’ increasing demand for immersive and personalized shopping experiences.
By improving operational efficiency from marketing to distribution, adopting AR in retail has also resulted in increased sales and reduced uncertainty and return rates, ultimately contributing to the market’s projected growth of USD 62.3 billion by 2033. Moreover, the linked market research by Custom Market Insights notes that tools like smart mirrors, mounted displays, and handheld devices aid customers in visualizing products and making purchase decisions, making AR a key growth driver in eyewear, footwear, and fashion, as evidenced by the use cases discussed below.
AR use cases in eyewear, footwear, and fashion
Virtual try-on
As more and more fashion segments like eyewear, footwear, and apparel tap into digital marketplaces, AR helps bridge the gap between physical and online shopping journeys through virtual try-ons. For example, sportswear giant Nike launched a sneaker try-on experience to enable customers to view how select Nike styles fit their size by only using their smartphone. By scanning a customer’s foot and developing a 3D hologram of a shoe model based on their exact measurements, the real-time feature eliminates the need to visit a physical store location while also increasing consumer confidence during the order and checkout process.
Tailored product recommendations
A recent survey on shopping trends revealed that aside from 23% of consumers actively seeking virtual try-on tools, 26% value tailored recommendations that lead to more informed purchasing decisions. In this light, outdoor eyewear brand Costa Del Mar developed a frame advisor that recommends glasses for face shape. The AR-powered tool scans customers’ faces to find the best frames that match their features and measurements. In addition to providing a personalized selection of frame styles, Costa Del Mar also helps customers compare different frame styles and lens details to reduce abandoned shopping carts and ensure their favorite frames suit their lifestyles.
Immersive in-store experiences
Lastly, AR smart mirrors are increasingly being utilized in beauty and fashion retail for more immersive in-store experiences. The luxury fashion brand Coach has partnered with AR platform ZERO10 to provide customers with digital versions of its signature Tabby bag for try-ons through in-store AR mirrors and storefronts. Unlike traditional stores and fitting rooms, the fully functional AR-powered mirror enables shoppers to choose from eight digital variations of the Tabby and download their digital look with special effects like butterfly wings for greater engagement and more successful brand-customer interactions.
In summary, AR experiences drive growth in sales and customer satisfaction in eyewear, footwear, and fashion industries, mainly through use cases like virtual try-ons, tailored recommendations, and immersive retail experiences.
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