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Because the world has changed so much, the fashion industry, the fourth largest sector of the global economy, is being forced to adapt. Today he had to face many problems. In a highly competitive environment, there are thousands of brands and retailers who need to improve their business operations, increase sales, attract new customers online and offline, and be environmentally friendly.
To find solutions to these challenges, the industry has started to turn to new technologies like AR and IoT. In the last decade, many online shoppers have churned. Due to the COVID-19 pandemic, online shopping is becoming increasingly popular. By 2021, 49% of global consumers will be shopping online today compared to before the pandemic.
E-commerce is a relatively new trend in the fashion industry. Online retail has its own set of challenges, but it can also be a tool platform for solving the most pressing problems in the fashion industry.
Digital tools used in e-commerce can offer new ways to connect with consumers and shop online. At the same time, as an answer to the economic crisis and the environmental crisis, there are e-commerce solutions that can reduce production costs and bring more sustainability to the fashion industry in the future.
AR is one of the most requested technologies with the potential to help industry players solve some of the challenges mentioned above. This technology is very important for the future of fashion. Online shopping can be a more effective sales channel. There are five strong points that prove this.
#1: Augmented Reality increases profitability
One of the key e-commerce opportunities emerging from augmented reality is digital testing technology. This allows consumers to buy virtual clothing (like Snap, ZERO10, and Clo-Z), shoes (like Wanna Kiks, Kivisense, Vyking), accessories (like Perfect, Hapticmedia, QReal), and beauty products (like ModiFace). Virtool, Visage Technologies) is almost like the physical world.
This is important as people need to understand if a product is right for them before they buy it. In 2019, before the pandemic, 55% of consumers said the ability to try on clothes was behind their decision to shop in a physical store.
Consumer preferences may change, but COVID-19 has forced people to shop online. So nowadays more and more consumers are used to online shopping but still want to try on clothes. As a result, they buy clothes on e-commerce platforms and then often return at least some items after wearing them at home.
The global economic slowdown is forcing people to shop with caution, and for many it's easier to refuse a product they don't believe in than going through the returns process.
Augmented reality testing allows consumers to use smartphone cameras to experience the digital look of their favorite items. The experience can be very realistic as the technology already exists that can do body tracking and segmentation and simulate different types of fabrics.
This helps to make more assertive and informed decisions. When consumers are confident in their choice, it motivates them to buy more. Therefore, sales increase while returns decrease, and profitability is resource-intensive for retailers as revenue increases logistics costs and decreases the profitability of each declining product.
#2: Augmented Reality makes shopping more sustainable
Sustainability is one of the biggest challenges for the fashion industry today. Fashion is one of the biggest pollutants in the world today. In the United States alone, 11.3 million tons of hazardous materials end up in landfills every year.
Garment manufacturing is a major contributor to the environmental crisis, as brands often produce more than they can sell, especially when it comes to mass-market fashion. At the same time, mankind buys a lot of clothes.
Many shoppers find it easier to throw items in the trash than to return them.
By encouraging smarter shopping, the experimental AR technology helps reduce the number of disappointing purchase decisions, thereby reducing textile waste. In addition, it also reduces CO2 emissions from logistics as it stimulates profit margins.
In the future, AR testing could also reduce the production of physical clothing. With augmented reality, not only garments that have already been produced can be tested, but also concepts that do not yet exist. Seeing and experiencing the concept of fashion in physical form can bring specific garments to life based on consumer demand. Who knows what this experience could bring to the fashion industry?
This means no more producing products that are not needed and there can be waste.
Prioritizing sustainability is a contribution to a better future for the world. It's also a way to increase brand loyalty. According to McKinsey, 63% of European consumers consider promoting brand sustainability to be an important purchasing factor.
#3: AR is the key to the Metaverse
Metaverse is one of the most debated topics regarding the future of society. In 2021, the number of web searches related to the word "metaverse" will increase by 7200%. A mass acceptance of the metaverse does not take place, but will also be great in the future. Augmented Reality allows brands and retailers to explore the possibilities of the Metaverse and pave the way for the future of fashion.
Metaverse offers brands two main sales opportunities: selling digital clothing to the user's avatar and placing the store in a virtual space where people can buy physical clothing. The first option may seem deceptive to some, but the prospects are impressive.
By 2021, internet users will spend between $60 billion and $70 billion on video game virtual goods, so many people are used to buying digital clothing, accessories, and cosmetics. The second option is to transform the traditional ecommerce shopping process into an immersive experience. This makes what is usually a purely mechanical process more fun.
Metaverse also offers the opportunity to improve marketing. It's a place for brands and retailers to interact with their audience and showcase their products. Metaverse will enable retailers to offer customers more personalized offers and build better loyalty programs.
Of course, the Metaverse can wait until it becomes popular and has a large audience. But then the brand or the retailer has to go after those who chose to be there. You know, it's easier to be an early adopter than it is to catch up.
#4: AR helps communicate with Gen Z.
Gen Z consumers are taking charge, and brands and marketers are wondering how best to communicate with them. These young people grew up with technology, and e-commerce needs to speak the same innovative language with them. They also strive to make financially and environmentally conscious choices and view shopping as an experience rather than a transaction.
With Gen Z consumers tending to evaluate fashion products long before they make a purchase, providing the most reliable data for e-commerce is critical. AR is a compelling tool for testers because it helps them form more informed opinions. It's also giving Gen Z new ways to interact online through social media and the metaverse.
Speaking of social media: Young people see clothing as a means of self-expression and creativity. Posting on a social platform requires displaying phrases that are used frequently and then either returned or forgotten. It's not eco-friendly at all.
Generation Z cares about the environment and tries to reduce pollution. You can appreciate the benefits of digital clothing. With a desire to protect the planet, they would also like to create the physical clothing desired.
#5: Augmented Reality makes the search for new talent easier
Getting started as a fashion designer is not easy financially. New fashion designers have to invest their own money to create their first items and sets. You need to buy textiles, clothing accessories and other items. You also need resource-intensive templates and presentations to create effective presentations.
Augmented Reality is a more sustainable and affordable way for new designers to showcase their collections to buyers, consumers, journalists and influencers. Additionally, augmented reality can make contests more inclusive and accessible for young fashion designers, removing geographic and financial barriers. These competitions can also be ported to the Metaverse.
As a result, the fashion industry will become more democratic and smarter fashion designers will get the opportunity to be part of the industry.
Selling clothes online is relatively cheap compared to in-store, but aspiring designers need to appeal to their audience. They also need digital tools for this. Consumers are still suspicious of little-known designers. Changing consumer minds takes a lot of effort.
Predicting the future may seem like a pointless task as predictions cannot be 100% accurate. Also, there are always some black swans waiting to show up and change the game. But when it comes to AR's ability to boost e-commerce, that's not even an expectation because it's already happening.
Forward-thinking brands and retailers are likely to try this technology. You see how you can solve problems and offer new opportunities.
Credit for select images: Photomix Company; Pixel. Thanks very much!
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