--- description: Augmented reality in fashion may be an opportunity for retailers to improve the customer shopping experience. Learn more about the benefits of AR in fashion. image: https://gdm-localsites-assets-gfprod.imgix.net/images/software_advice/og_logo-55146305bbe7b450bea05c18e9be9c9a.png title: Augmented reality in fashion: Immersive shopping experience --- # Augmented reality in fashion: Immersive shopping experience Canonical: https://www.softwareadvice.co.uk/blog/2380/how-is-augmented-reality-changing-the-fashion-industry Published on 19/10/2022 | Written by Sukanya Awasthi. ![Augmented reality in fashion: Immersive shopping experience](https://images.ctfassets.net/63bmaubptoky/yNQ9y8Q6dwyjCNM4suOYl3Si_L-ipa_bw5cBm0ng2J4/7ce137e893f9f1c2bb4e34b69240eed7/AR-in-Fashion-UK-SA-Header.png) > This article was originally published on 05/01/2022. ----- ## Article Content This article was originally published on 05/01/2022.Immersive technologies like augmented reality (AR) and virtual reality (VR) have the potential to transform the shopping experience for buyers and also change the way companies engage with customers. In this article, we will learn more about the benefits and challenges of using these by retailers. In this articleHow is AR being used in fashion?What are the benefits of augmented reality in fashion industry?Challenges of using augmented reality in fashionThe future of augmented reality in retailThe pandemic has possibly changed the way people shop. Amid COVID-19, many brands may have transitioned to alternate ways of shopping to meet the needs of their customers. A Shopify survey across 11 markets revealed that 84% per cent consumers shopped online during the pandemic. The same report also states that consumers are demanding immediacy, convenience, and speed from retailers and retail giants are also keen on providing a more personalised and immersive retail experience to the consumers.One such way of adding a personal touch to the shopping experience could be through the introduction of augmented reality (AR) into the fashion industry. A GetApp survey indicated that 1 in 2 consumers in the UK are willing to use AR technology for shopping. 90% of respondents in the UK agree that AR is most useful when buying clothes online, followed by 70% stating handbags and glasses. In this article, we will look at how businesses are looking to AR to provide a better and smarter customer experience.What is augmented reality?Gartner describes augmented reality as a real-time use of information in the form of audio, image, video, text etc in combination with real-world objects to create a “real world” element that enhances a user’s experience of the world around them. The results obtained from superimposing inputs through digital visual elements onto the physical world thus create a 3-D interactive user experience.How is AR being used in fashion?According to a CNBC report, brands like American Eagle and Nike are deriving a large part of their sales from the internet. The same report also states that businesses that haven’t been able to invest and attract clients online are the ones facing struggles. In such a scenario, many retailers have started looking for alternatives to in-store shopping like AR fashion experience.An article by Harvard Business Review talks about how virtual stores are also being used by retailers to rethink the digital shopping experience using AR technologies. Kohl’s and Snapchat collaborated in May 2020 to build Kohl’s AR Virtual Closet. Consumers may enter an AR dressing room, mix and match things, and make a purchase by using their smartphone without ever leaving the Snapchat app. This can also help them to make smart augmented reality shopping decisions. They can experience a virtual reality fashion closet as well for an immersive retail experience.The same article also talks about how Levi’s is enhancing its augmented reality retail strategy with digital tools. One of them is Squad, an online co-watching video programme that allows friends to shop together. The software was released in April 2020 as a method to recreate some of the social activities that people have been missing out on as a result of the pandemic.According to a Gartner article, a Scandinavian company Carlings has collaborated with Instagram to develop a white t-shirt that seems plain to the naked eye but contains dramatic graphics when seen through the phone app. The article also talks about how social media might offer up new possibilities for fashion businesses to collaborate with the platform. Customers may create and personalise items using digital technologies.What are the benefits of augmented reality in fashion industry?Augmented reality might have been around for a while but the apparel, fashion, and luxury (AF\&L) industry has possibly seen the potential of product visualisation during the recent times of COVID-19. Some of the benefits offered by AR technology to the customers who choose to shop online are listed below:Increase in customer engagementAR can possibly help businesses improve customer engagement by offering them a fun and engaging way to explore their interests in an innovative way. VR fashion technologies can potentially provide convenience not just to customers, but also to manufacturers and business owners by letting them operate from the comfort of their homes.Using social media platforms like Snapchat to connect with consumers may also result in rising curiosity and interest towards the brand items as well as ignite their interest towards augmented reality clothing options and AR shopping experiences. Not only can users try their favourite products from the catalogue, but they may also see how it looks on them. Reduced return rateAccording to an article by The Commentator, merchants received $428 billion in item returns in 2020. Consumers sometimes over-purchase items to try out alternative options or return the items they feel do not fit them right. This can potentially have a detrimental influence on the company’s profit margins and also add additional logistic costs. AR may help with this situation by giving customers a taste of what they are buying. A Shopify report states that 40 per cent of buyers would be ready to spend extra for a product if they could try it on in a virtual fitting room, and 71 per cent would shop at that merchant more frequently.Higher conversion rateAccording to a survey conducted by LittleData, style and fashion stores have a conversion rate of 1.8 per cent on average. According to a Shopify report, using AR can improve the conversion rate for products. For e.g,  since the fall of 2019, Rebecca Minkoff began employing 3D models on their product sites. Visitors who engaged with a 3D model were 44 per cent more likely to add a product to their basket and 27 per cent more likely to make a purchase than those who did not. Visitors who saw a product in augmented reality were 65 per cent more inclined to buy it.Challenges of using augmented reality in fashionWhile the usage of AR in the retail sector has the potential to provide significant benefits to businesses, there are still areas in retail augmented reality which come with their own set of challenges. Some of these are mentioned below:Security and privacy issuesConcerns about privacy and security can be some of the problems that the business with AR in place may face. Users may also need to share larger amounts of personal data with the apps facilitating AR for the brands. According to an article by UMi1, face expressions, audio data, retina patterns, and other personal data are all collected by Snapchat and Instagram filters and utilised for identification. Hence, just like with any technology, augmented reality in retail may also be used with malicious intentions. Technological challengesVR has possibly seen a boom only in the last few years. Some of the businesses looking to adopt AR may not have the technology required to build VR models. In an interview given to Shopify, the founder of a UK company The Tur-Shirt Company states:  “I’d not considered a virtual fitting room because I saw it as something the big brands do—not small businesses. I’m a small company with a limited marketing budget, and thought AR technology was too big of an investment for me to make.”The future of augmented reality in retailFashion firms and online retailers can improve client experience and engagement by utilising augmented reality capabilities. Augmented reality in fashion retail may also give customers a new way to interact with different fashion and luxury items. According to a Statistica report, the augmented reality market is expected to be worth close to US $300 billion by 2024. When it comes to expanding a customer’s existing purchasing experience, AR fashion technology may be an opportunity for businesses. Businesses may use AR to create a more engaging shopping experience for customers, including the ability to test out the product they wish to buy visually.Looking for augmented reality software? Check our catalogue\! ## About the author ### Sukanya Awasthi Sukanya is a Content Analyst for the UK and India market. Committed to offering insights on technology, emerging trends and software suggestions to SMEs. 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