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As the world changes dramatically, the fashion industry, the fourth largest sector of the global economy, must adapt. Today, it faces many challenges. There are thousands of brands and retailers in a highly competitive environment that need to improve business processes, increase sales, attract new customers online and offline, and go green.
To find solutions to these problems, the industry has started turning to new technologies like AR and IoT. Over the past decade, many shoppers have gone online. The COVID-19 pandemic has increased the popularity of online shopping. In 2021, 49% of global consumers will make more purchases online than before the pandemic.
E-commerce is a relatively new direction for the fashion industry. E-commerce has its challenges, but it can also become a platform for tools that address the most pressing issues facing the fashion industry as a whole.
Digital tools used in e-commerce can provide new ways to engage with consumers and convince them to buy online. At the same time, there are e-commerce solutions that reduce production costs and make the fashion industry more resilient to future economic downturns and environmental crises.
Augmented reality is one of the most in-demand new technologies because it can help industry players solve many of the aforementioned problems. This technology definitely defines the future of fashion. This can make online shopping a more effective sales channel. Five salient points prove this.
#1: AR increases profitability
One of the biggest e-commerce opportunities emerging from augmented reality is fit digital technology. It allows consumers to try on products (eg Snap, ZERO10, Clo-Z), shoes (eg Wanna Kiks, Kivisense, Vyking), accessories (eg Perfect, Hapticmedia, QReal) and branded beauty (eg ModiFace, Virtool, Face). technologies) is almost the same as it is in the physical world.
This is important because it is very important for people to understand whether a product is suitable or not before purchasing a product. In 2019, before the pandemic, 55% of consumers said that the ability to try on clothes was a key factor in choosing their physical stores.
Consumer preferences are unlikely to change, but COVID-19 has forced people to shop online. More and more consumers are used to shopping online, but still want to try on clothes. Therefore, they buy clothes on e-commerce platforms, then try them on at home and often return at least part of the items.
The global economic downturn is forcing people to shop smarter and for many, it's easier to refuse an item they're unsure about than the return process.
With AR Pass, consumers can use their smartphone cameras to see what a digital version of an item they love will look like. The experience can be very realistic because there are already technologies that can mimic body tracking and segmentation and different types of clothing.
It helps you make a more informed and informed decision. When consumers feel confident in their choice, it encourages them to buy more. So sales are up, returns are down, and returns are resource-intensive for retailers because returns increase logistics costs and reduce the profitability of any rejected product.
#2: Augmented reality makes shopping greener
Sustainability is one of the biggest challenges facing the fashion industry today. Fashion is one of the most important polluters on earth today. In the United States alone, 11.3 million tons of textiles are thrown away each year.
The clothing industry is heavily influenced by the environmental crisis, as brands often produce more than they can sell, especially when it comes to consumer fashion. At the same time, humans clearly buy too much clothes.
Many buyers find it easier to dispose of surplus items than to return them.
By enabling more accurate shopping, augmented reality testing technology helps reduce frustrating purchasing decisions, thereby reducing tissue waste. In addition, it reduces CO2 emissions from logistics, because the income is lower.
In the future, an augmented reality suit could reduce the production of physical clothing. AR makes it possible not only to test garments that have already been produced, but also to test concepts that do not yet exist. By seeing and testing the clothing concept in physical form, specific fashions can be experienced at the request of consumers. Who knows what this practice might do to the fashion industry?
This means that there is no excess production of uncollected goods that can end up as waste.
Supporting sustainable development is an investment in a better future for the world. It is also a way to increase brand loyalty. According to McKinsey, 63% of European consumers consider promoting brand sustainability as an important purchasing factor.
#3: AR is key to the Metaverse
The metaverse is one of the most discussed in terms of the future of society. In 2021, Internet searches for the word "metaverse" increased by 7200%. There is currently no mass Metaverse implementation, but it will be important in the future. AR empowers brands and retailers to explore the possibilities of the Metaverse, paving the way for the future of fashion.
There are two main sales opportunities that Metaverse offers brands: selling digital clothing for user avatars and setting up stores in the virtual space where people can buy physical clothing. The first choice may seem crazy to some, but the prospects are truly impressive.
In 2021, Internet users will spend 60 to 70 billion dollars on virtual goods from video games, so there are already some people who are used to buying digital clothes, accessories and cosmetics. The second option turns the typical e-commerce shopping process into an immersive experience. This brings fun to an otherwise purely mechanical process.
Metaverse also offers an opportunity to improve marketing. It's a place for brands and retailers to engage with their audience and showcase their products. Metaverse will enable retailers to offer more personalized offers to customers and develop better loyalty programs.
Of course, you can wait until the Metaverse is very popular and has a large audience. But then the brand or retailer has to drive out those who were established there. It is known that being a pioneer is much easier than catching up.
#4: Augmented reality helps connect with Gen Z
Gen Z consumers are embracing it, and brands and marketers are scrambling to find the best way to connect with them. These young people who grew up with technology and e-commerce should speak the same innovative language to them. They also strive to make financially and environmentally conscious choices, and view shopping as an experience, not just a transaction.
As Gen Z consumers tend to carefully review fashion products before purchasing, it is imperative that e-commerce provides the most credible data. Augmented reality editing is a winning tool for them because it helps them form more informed opinions. It also offers new ways to connect with Generation Z on the Internet, especially through social media and the metaverse.
Speaking of social media, young people see clothing as a means of self-expression and creativity. A post on a social platform often calls for an extravagant look that can be put on once and then put away or forgotten. It is not ecological at all.
Generation Z is environmentally conscious and strives to reduce pollution. You can appreciate the benefits of digital clothing. In addition, out of concern for protecting the planet, they will appreciate the proper production of physical clothing.
#5: Augmented reality makes it easier to find new talent
Starting a career as a fashion designer is not easy financially. Aspiring fashion designers often have to invest their own money to create their first pieces and collections. You need to buy textiles, clothing accessories and other materials. They also need templates and resource-rich screens to make an impressive presentation.
AR is a more sustainable and financially savvy way for new creatives to showcase their collections to buyers, consumers, journalists and influencers. Additionally, augmented reality can make competitions for young fashion designers more inclusive and accessible by removing geographical and financial barriers. Such competitions can also be moved to the Metaverse.
As a result, the fashion industry will become more democratic and brighter fashion designers will have the opportunity to be part of the industry.
Selling clothes online is relatively cheap compared to working in a physical store, but aspiring designers need to earn their audience. They also need digital tools for this. Consumers are generally suspicious of new designers. It takes a lot of effort to change consumer opinion.
Predicting the future may seem like a futile task, as predictions cannot be 100% accurate. Also, black swans are always waiting in the wings to arrive and change the game. But when it comes to augmented reality's ability to improve e-commerce, it's not even a prediction, because it's already happening.
Forward-thinking brands and retailers tend to experiment with this technology. They see how it can solve their problems and open up new opportunities.
Featured image credits: Photomix; Pixel; Thank you!
"5 Reasons Augmented Reality Is the Future of Online Shopping" was first published on ReadWrite.