September 9, 2024

Augmented Reality in Retail: Insights for Furniture, Appliance, and Clothing Vendors

Anastasiya Talochka · 9 minute read

Augmented reality in retail is rapidly becoming a staple in various economic sectors. In fact, the AR market in retail is projected to skyrocket to $61.3 billion by 2031, with a staggering annual growth rate of 41.4%.

Why is augmented reality such a big deal for retailers?

From the earliest days of human history, people have been trading goods, moving from ancient marketplaces to bustling global economies. The art of shopping has evolved with us, ingrained in our very nature. Just like we’ve learned to adapt to new ways of fitting into society, retail stores need to keep evolving and coming up with fresh ideas to stay competitive.

Customer loyalty is as short-lived as a trending hashtag, so businesses can’t afford to get comfortable. Just a few bad quarters can lead to serious trouble. That’s why staying in tune with shoppers' changing expectations is crucial. Retailers need to close the gap between the sales floor and the decision-makers, making sure employees have the tools and flexibility to respond quickly to customer needs.

Let’s explore how AR is revolutionizing the retail industry and why it’s essential for retailers to get on board.

Overview of Augmented Reality in Retail Industry

Augmented reality in retail is bringing a new dimension to the industry, enriching the shopping experience by blending virtual elements with the real world.

AR changes how users see the world by adding digital elements—like videos, images, or 3D models—right into their physical surroundings. This technology offers customers dynamic and engaging experiences, allowing them to see products in real time, try out virtual samples, and interact creatively with branded content.

Multiple technologies power AR experiences in retail. Here’s a look at some of the most important ones:

Mobile devices. Smartphones and tablets with AR-capable apps are the most common tools for accessing AR experiences. These devices use integrated cameras and sensors to overlay digital content onto the real world, allowing users to interact with virtual elements seamlessly.
AR software development kits (SDKs). Developers use AR SDKs to build customized AR apps tailored to a retailer's specific needs. These kits provide tools for 3D object tracking, marker recognition, and image recognition, making it easier to integrate virtual elements into the real world.
Computer vision. Computer vision algorithms are crucial for AR, as they enable devices to understand and interpret their surroundings. This technology enhances the overall AR experience by recognizing objects, surfaces, and gestures, allowing natural interactions between users and digital content.
Spatial mapping. This technology creates detailed, real-time 3D maps of physical environments. AR apps use this technology to accurately place virtual objects within these spaces, making the user experience feel realistic and immersive.
Wearable technology. Wearable AR devices, such as smart glasses and headsets, offer hands-free interaction and a higher level of immersion compared to traditional mobile devices. With built-in displays and sensors, users can interact with digital content directly within their field of view.
Cloud computing. Cloud-based AR systems handle some of the heavy lifting by using remote servers to process and render complex AR content. This ensures smooth, high-quality AR experiences on a wide range of devices, no matter their individual processing power.

Augmented Reality in Retail

AR Retail Timeline

Augmented reality technology has transformed how customers interact with products and brands, revolutionizing the retail experience over the years. Here are the key milestones in the augmented reality retail journey:

AR in Retail Timeline

Early experiments and proofs of concept. Back in the latter half of the 20th century, AR was more about experimentation and proving the concept. Pioneering projects and demos began exploring how AR could enhance retail experiences. These early efforts laid the groundwork for future innovations in AR technology and its application in retail settings.

Rise of AR applications. The early 2000s marked a turning point as smartphones with cameras and sensors became mainstream. Retailers started experimenting with AR apps, offering features like virtual try-ons, interactive marketing campaigns, and product visualizations. This period saw AR moving from a futuristic idea to a practical tool for enhancing the shopping experience.

Adoption and industry integration. As mobile technology, computer vision, and spatial mapping improved throughout the 2010s, AR began to gain traction among major retailers and brands. This era saw AR being integrated into both online and in-store experiences, offering immersive and interactive shopping journeys that spanned multiple channels.

Expansion of AR use cases. AR has since evolved beyond traditional retail applications to include a variety of innovative use cases. From interactive displays and virtual showrooms to augmented reality advertising, retailers have embraced AR to stand out from the competition, engage customers, and drive sales.

Why We Shop the Way We Do

To truly grasp how consumers engage with retail environments, make purchasing decisions, and connect with brands, we need to look at some fundamental theories of consumer behavior. These theories provide valuable insights into how and why people shop the way they do.

The Planned Behavior Theory

Developed by Icek Ajzen, this theory breaks down behavior into three main factors: what people think about the activity, how much control they feel they have over it, and what they think others expect of them.

In the retail world, TPB helps us understand how a shopper's attitude towards a product, their perceived control over the purchase, and social influences impact their decision to buy a particular brand.

Social Identity Theory

Founded by Henri Tajfel and John Turner, this theory explores how people’s sense of belonging to social groups influences their behavior and preferences.

In retail, this means understanding how consumers' affiliations with certain groups or brands can sway their buying choices. It’s all about the role of identity in shopping decisions. If a brand aligns with a consumer’s social identity, they’re more likely to be loyal to it.

Technology Acceptance Model

Fred Davis created TAM to figure out what makes people accept new technology. This model is super handy for retailers looking to understand why customers are drawn to new tech like augmented reality.

TAM looks at how useful and easy-to-use customers find AR, helping retailers tailor their tech offerings to better meet shopper needs. If AR is seen as valuable and easy to use, customers are more likely to engage with it.

Elaboration Likelihood Model

Created by John Cacioppo and Richard E. Petty, ELM explains how we process information. It can be done in two ways: centrally, where we carefully evaluate the details, or peripherally, where we make quick judgments based on superficial cues.

In retail, this helps us understand how consumers process AR experiences—whether they’re deeply analyzing the features or just reacting to flashy visuals.

By tapping into these theories, retailers can better understand their customers and create shopping experiences that resonate with them. Whether it's through tech adoption or social influences, these insights are crucial for crafting compelling retail strategies that capture and hold customer attention.

How Augmented Reality Shapes Customers' Feelings and Thoughts About Shopping

Augmented reality in retail is transforming more than just the shopping process—it’s altering how customers feel and think about physical products and brands.

Here’s how AR shopping taps into both the emotional and cognitive aspects of the customer experience.

augmented reality in retail benefits

Emotional connection. AR sparks emotions like excitement and curiosity, deepening customer connections.

Thinking and decision-making. AR helps customers visualize their choices, enabling them to make smarter decisions and avoid buyer's remorse.

Remembering better. AR acts like a digital sticky note, making your brand memorable and perfect for those "I know where I saw this" moments.

Chaging perception and behavior. By presenting your products in an engaging, dynamic way, it changes how customers view features, pricing, and value. This is how you drive a new level of understanding and preference.

How Augmented Reality Shapes Your Brand Image

Upgrading brand’s image. AR places your brand at the cutting edge—leading the pack, not following it.

Deepening brand interaction. AR creates a seamless, immersive experience that enhances customer engagement and builds deeper connections, focusing on creating lasting impressions and meaningful interactions.

Setting yourself apart from competitors. In a sea of sameness, AR offers a unique value proposition that captivates customers and sets you apart from the competition.

Building trust and credibility. Virtual try-ons let customers see how things fit, so they won’t feel like they’re playing dress-up with a blindfold. Trust earned, sale made.

How Augmented Reality Driving Sales and Conversions

Showcase products in real-time. Customers can see how your products look in their space without any guesswork, making shopping smoother and a lot more fun.

Enable virtual try-ons and try-outs. No more “will it fit?” worries—just click, see, and decide.

Interactive product demonstrations. AR turns static product images into dynamic, hands-on experiences.

Tailoring to individual preferences. From virtual fitting rooms that let customers try on clothes without physically changing to product recommendations tailored to their tastes, AR helps create a shopping journey that feels custom-made for each individual.

Smooth transitions across all retail channels. Whether online or in-store, AR ensures a consistent and cohesive brand experience.

Digital styling assistance. By leveraging digital assistants, you guide customers to the perfect products based on their tastes and preferences.

How Augmented Reality Is Boosting Customer Engagement

Discover products in a whole new way. Augmented reality retail apps make exploring new items engaging and interactive, transforming the shopping process into an exciting adventure.

Gamification and rewards. Incorporate AR displays into the customer experience through games or scavenger hunts. These elements encourage repeat visits and enhance loyalty.

Create emotional connections with your brand. Through immersive storytelling and experiences, AR makes your brand memorable and impactful.

Boost social sharing and virality. Customers are eager to showcase their interactions, amplifying your brand’s visibility through organic social media engagement.

Storytelling & brand narrative. Use AR to bring your brand’s story to life. By integrating AR into your marketing campaigns, you can create immersive storytelling experiences that strengthen emotional connections with your customers.

Deliver personalized engagement. By analyzing customer data and context, AR applications can offer personalized content, promotions, and recommendations. This means each customer gets a shopping experience that feels uniquely suited to them, enhancing their overall satisfaction.

In-Store vs. Out-of-Store AR in Retail Use Cases

You’ve got two main routes to explore: in-store and out-of-store. Each approach offers unique benefits and can be tailored to fit your business needs.

In-Store vs. Out-of-Store AR in Retail

In-store AR is about creating an immersive shopping experience for customers who are physically present in your store. Here’s how it works:

Handheld devices: Smartphones and tablets. Shoppers can use these devices to interact with AR content by scanning product tags or using AR apps. This can bring up additional information, like product details or interactive 3D views.
Wearables: AR glasses or headsets. Customers can try on virtual outfits or view product info right in their field of vision—without having to touch anything.
Special AR Hardware: This includes things like smart mirrors, interactive fitting rooms, and AR-enhanced shop windows. These tools let customers virtually try on clothes, see products in 3D, or interact with digital displays in a way that feels both futuristic and practical.

While in-store AR creates a rich, engaging environment that can significantly boost customer interaction and satisfaction, it does require a bit of an investment. Not every retailer might have the budget for this high-tech setup.

Out-of-store AR extends the AR experience beyond your physical location, allowing customers to engage with your products from wherever they are. Here’s how you can leverage this approach:

Mobile apps: Customers can use your e-commerce app on their smartphones to access AR features. This might include trying on virtual products, like clothes or accessories.
Web apps: Integrating AR into your website means customers can use their desktop or mobile browser to see products in their own space. For example, they could visualize how a piece of furniture looks in their living room before making a purchase.

The out-of-store approach is often more cost-effective and easier to implement compared to in-store solutions. It also offers the flexibility to reach a broader audience without needing a physical retail space.

For many retailers, the best strategy is a combination of both in-store and out-of-store AR. This omnichannel approach ensures that whether customers are shopping online or visiting your store, they have a seamless and engaging experience.

Deciding What’s Best for Your Business

Choosing between in-store, out-of-store, or a mix of both approaches depends on your resources and goals. If you can’t afford high-tech in-store setups, focusing on out-of-store AR might be the way to go. But if you have the means, in-store AR can provide an unforgettable shopping experience that drives customer loyalty and engagement.

How to Bring AR to Life in Retail Industry

Augmented reality is reshaping the retail landscape, but to fully leverage its potential, it's essential to combine insights from three key areas: retailers, consumers, and technology.

Retailer Insights

Retailers are the masterminds behind setting strategic goals and operational needs for AR in retail. Many brands are now leveraging AR technology to boost customer confidence, increase customer satisfaction, and create immersive experiences.

For instance, AR in-store displays and AR fitting rooms offer a personalized shopping experience, allowing customers to visualize products in real-world settings, whether they are in physical stores or engaging with a retail app.

By understanding how these solutions fit within their resources, logistics, and scalability, retailers can ensure that AR-powered innovations seamlessly and impactfully create in-person experiences that truly resonate.

AR in retail use cases

Consumer Insights

At the heart of every successful augmented reality shopping experience are the consumers. To make an AR app truly impactful, it’s crucial to understand customer experiences, especially what motivates and frustrates them during the shopping process. This includes understanding how they engage with both in-person experiences and digital platforms, such as social media, where AR features are increasingly integrated.

Technology Insights

AR technology requires a strong foundation of technical expertise. From advanced technology like spatial mapping to AR displays in stores, tech plays a pivotal role in bringing AR experiences to life. Many brands are already exploring how AR in retail can transform the way they engage with customers, using AR apps and smart devices to deliver an immersive experience.

When retailers combine their knowledge of customer experiences, consumer expectations, and cutting-edge advanced technology, they can craft AR in retail solutions that elevate the shopping experience. Whether through AR fitting rooms in physical stores or virtual showrooms on a website, AR in retail provides both in-person and virtual experiences that keep shoppers engaged and confident in their purchases. By making these investments, many brands are already seeing a positive shift in customer engagement, loyalty, and satisfaction.

Dont Miss Out on the Next-Gen AR Revolution

Zolak Showroom revolutionizes furniture visualization with immersive next-gen AR features. It enables customers to explore dynamic 3D environments on your website, interact with furniture, and visualize products in their own spaces using their phone’s camera.

Integration? Effortless. Zolak Showroom seamlessly connects with platforms like Magento, Shopify, and BigCommerce, enhancing both online and in-store experiences. Retailers can craft virtual showrooms that truly represent their brand and offer extensive product customization.

This innovative AR retail experience bridges the gap between online and physical shopping, making it easier for customers to make informed purchasing decisions.