Around 50% of businesses have adopted artificial intelligence technology in their operations. The trend of tech integration has not left any industry untouched, and the luxury goods market is not an exception. The virtual try-on feature in particular has been instrumental in supporting the rebound of luxury retail. With its help, the market showed growth by 50% in 2020, which placed it among the fastest-growing categories.
Is it a short-term effect or is the trend here to stay? Let’s consider if virtual try-on technology has any substantial benefits for the luxury watch industry.
Due to the COVID-19 pandemic, luxury watch stores have faced limitations in product promotion. High-class in-store shopping experiences were no longer possible, which led to a significant decline for the whole market. According to the 2020 Luxury Goods Worldwide Market Study by Bain & Company, the luxury goods market value fell by 23%.
The pandemic urged a profound change in how luxury watch brands approach promotion. Digital marketing formed the core of the new strategy. As a result, the luxury goods market has seen online shopping bring outstanding results. As per the Global Voices: Pre-Peak Pulse 2021 survey, over 40% of shoppers consider it a strong alternative to physical purchasing.
Even though offline retail is making a comeback, once the customer feels the convenience of online shopping, it is hard to switch them back to offline. This means that luxury watch brands now need to continuously invest in online communication with their customers and enhance their online shopping experience.
Moreover, let’s not forget that luxury customers are a rather demanding bunch. The switch to online did not change the fact that they expect to have an exclusive, personalized shopping journey. That is exactly what a virtual try on can provide.
Virtual try on allows buyers to experiment with products using their phone cameras. Buyers enjoy the novelty of the technology and find themselves fascinated with the new shopping experience. This encourages retailers to continue relying on the technology to drive sales. AR integration is expected to provide 20.6% financial growth for the luxury market volume by 2028.
Some well-known brands have greatly benefited from using AR solutions:
With AR confidently transforming eCommerce, the try-on feature will continue to evolve and unlock new possibilities for consumers and brands. With it, shoppers don’t have to search for the desired product and the store that carries it. All you have to do is download an app or put on AR glasses. And you don’t even have to be at the store — try-on lets you take the shopping experience anywhere, whether at home or out in the street.
The ultimate goal of any business activity is increasing profits. But how exactly does the virtual try on help achieve that?
The “touch and feel” factor plays a major role in selling apparel such as jewelry, watches, shoes, and clothes. Picturing the product considering hand movements and product peculiarities reinforces user certainty. This takes away the unwanted stress that comes with a diverse array of options.
Moreover, consumers can try on and browse through products at their own pace, without being pressured into making a purchase.
Personalization can potentially bring high profits to luxury watch companies. Paired with 3D technology, virtual try on becomes a powerful tool that allows buyers to receive customized products and provides space for self-expression.
Whether it’s a virtual try on of an Apple Watch for the techies or a virtual try on of Rolex for the clients who’d rather express themselves with eloquence, versatile personalized solutions provide benefits for everyone involved. According to BCG, personalization brings a 110% higher chance of customers including extra items in their shopping carts. They are also 40% more likely to spend over their planned budget.
Virtual try-on for watches is only part of the equation. The technology can supplement other shopping needs like clothing and accessories. An ability to assemble a look with various products and see how they combine unfolds prospects for cross sales.
In the modern era of social media, sharing is caring. People love getting feedback on the items they buy. With virtual try on, customers can share the images of the products they consider buying on social media and get an opinion from their friends — or simply show off their new purchase. Such free advertising only benefits businesses — higher online activity improves brand recognition.
Product returns lead to tangible financial losses — approximately $428 billion was lost in 2020 by US retailers due to returns. Virtual try on helps clients think purchases through and manage expectations. This encourages informed shopping. Testing watches and seeing which fits best prevents returns and ensures financial security for all sides.
Augmented and virtual reality solutions are valuable for boosting sales and maintaining customer loyalty in eCommerce. Virtual try on technology re-explores the potential of business-to-consumer communication. Finding a perfect approach for AR & VR implementation may not be an easy task. Postindustria’s team of tech devotees is here to help bring your boldest digital ventures into reality.
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