The retail landscape is evolving quickly, and sales are growing just as fast. Today’s beauty and fashion consumers are also evolving and looking to brands to provide shopping experiences that are both experiential and personalized. With the acceleration of digital transformation during the Covid-19 pandemic, consumers are approaching retail in a new way, with eCommerce sales increasing from $156.39 billion in Q4 2019 to $206.66 billion in Q4 2020, a 32.1% increase. Many shoppers who once opted for in-store shopping and consultations are now turning to digital channels for product advice and recommendations tailored to their unique needs. In order to captivate these consumers and build meaningful connections, brands will need to adapt their shopping journeys to meet the needs of this new, digitally-savvy consumer while providing the customized experiences these consumers are seeking.
AI and AR technologies have quickly emerged as essential tools to engage consumers in the new era of beauty and fashion retail. In particular, virtual try-on technology powered by AI and AR has allowed hundreds of brands to offer customers personalized shopping experiences that can be accessed easily from the convenience of a smartphone or laptop.
Looking ahead to 2022 and beyond, AI and AR technology will continue to play a major role in retail experiences as the world embraces web 3.0 and the metaverse. Below are a few ways that these technologies will continue to drive the future of beauty and fashion retail.
The Rise of Virtual Stores: AR Will Power Immersive, Contactless Retail Experiences
As the world emerges from the Covid-19 pandemic, consumers are placing an increased focus on health and hygiene, which has given rise to the adoption of virtual try-on technology in the beauty and fashion industries. With AI and AR-powered virtual try-on technology, consumers can try on and preview dozens of products from makeup to jewelry, and accessories, all through a fully-digital platform. With this experience, a consumer can sample many different products and find their perfect fit, without the need to touch physical product samples.
Beauty and fashion consumers have come to expect AI + AR-powered virtual try-on experiences from brands as a key tool to find the best products for their individual needs and style preferences. The need for these experiences will continue to expand as beauty and fashion brands prepare to enter the immersive digital worlds of the metaverse. In the metaverse, AR technology and virtual try-on will be essential to provide engaging and personalized shopping experiences. As beauty and fashion brands begin to build virtual store experiences in the metaverse, AR technology will allow consumers to virtually try-on products within virtual stores, enhancing the shopping journey and bringing a personalized, high-touch element to the experience.
AR Technology Will Be Key to Enhance Digital Avatars In the Metaverse
As consumers become more integrated into the digital worlds of the metaverse, they will begin to invest more in the digital personas and avatars that they use to explore these worlds. AR technology is set to play a major role in how consumers shop and express themselves in the metaverse. With AR virtual try-on technology, consumers will be able to purchase digital products and NFTs from their favorite brands which can then be worn by their digital avatar in the metaverse. This opens up an exciting new revenue stream for beauty and fashion brands, who can leverage wearable NFTs and digital products as a way to offer exclusive items to brand advocates, build community, and increase brand loyalty in this new space.
Perfect Corp. offers a first-to-market, end-to-end virtual try-on NFT solution that can help brands easily transform digital assets into NFTs and enable NFTs with virtual try-on capabilities. Through the power of AR, beauty and fashion brands can enhance their NFTs with a new layer of interactivity and fun. This technology also opens doors for brands to begin providing customers with wearable NFTs to complement their digital personas.
AI and AR Technology Will Take Personalized Retail to New Heights:
According to McKinsey, 80% of consumers are more likely to make a purchase when brands offer personalized experiences. Today, consumers are demanding personalized recommendations from brands and this will continue to be essential for building loyalty with customers as the retail industry continues to evolve. AI and AR technology provides some of the most effective and easily integrated tools for personalization across the omnichannel shopping journey. With virtual try-on tools and AI diagnostic technologies, brands can provide each customer with personalized shopping experiences and product recommendations. These personalized recommendations help customers feel more confident about their purchases, which in turn helps increase sales conversion and brand loyalty.
As the beauty and fashion industries look ahead to 2022 and beyond, retail behaviors will continue to evolve. AI + AR technology will remain at the center of retail’s evolution.
