The fourth-largest sector of the global economic economy, fashion, is facing significant changes. The fashion industry faces many challenges at the moment. It’s a competitive marketplace with many brands and retailers.
In search for solutions to these problems the industry has turned its attention to IoT, AR, and other emerging technologies. Many customers have moved online in the last decade. The COVID-19 Pandemic has increased the popularity of online shopping. The COVID-19 pandemic has boosted online shopping by 49%.
E-commerce is a relatively fresh direction in the fashion business. Online retail has its issues but it can also serve as a platform for tools and solutions to some of fashion’s most pressing problems.
Digital tools for e-commerce offer new ways to communicate to consumers and persuade customers to shop online. E-commerce solutions also offer the opportunity to lower production costs and provide more sustainability for the fashion sector in the future, in response to both the economic recession as well the environmental crisis.
AR is one emerging technology that is highly in demand because it has the ability to help the industry solve many of the above issues. This technology is sure to change the face of fashion. It can make online shopping an efficient channel of sales. This is supported by five strong points.
#1: AR increases profitability
The digital try-on tech is one of the most valuable opportunities for ecommerce. It allows users to simulate clothing (e.g. Snaps, ZERO10s, Clo-Z), footwear (e.g. Wanna Kiks), Vyking), accessories and beauty products (e.g. ModiFace. Virtool. Visage Technologies) in a virtual world that is very similar to what they see in real life.
This is important as it will help people decide if the product is right for them. In 2019, just before the pandemic struck, 55% stated that their preference to shop in bricks-and-mortar stores was due to their ability to try on apparel.
Although it is unlikely that consumers will have their preferences changed, COVID-19 forced people online to shop. These days, more consumers prefer shopping online but still want to wear the clothes. As a result, consumers often buy apparel online and then return the clothing after trying it on at home.
People are more likely to shop thoughtfully because of the global economic crisis.
AR tryon allows users to use their smartphone cameras in order to see how the digital image of the item they want will look on their device. You can make the experience very realistic with technologies that can detect your body and create different types of cloth.
It helps you make informed decisions. If consumers have confidence in their purchase decisions, they are more likely to buy. Sales see an increase, while returns drop. This is because retailers have to spend more resources on returns, which increases logistics costs and lowers profitability for each declined product.
#2: AR makes shopping less expensive
Fashion is facing one of the most difficult challenges in today’s world. Fashion is the leading pollutant on Earth right now. Every year, the US dumps 11.3 millions tons of textile.
The environmental crisis is greatly exacerbated by clothing production. Brands produce far more clothing than it can sell, especially in mass-market fashion. However, it is clear that humanity is purchasing too many clothing items.
Many shoppers find it easier than returning items to their original places to dispose of excess items.
AR tryon technology encourages more thoughtful buying. This helps decrease textile waste and discourages poor shopping decisions. Additionally, it encourages a decrease on returns and cuts CO2 emissions from logistics.
AR tryon may be able to reduce the manufacturing of physical clothing. AR can be used to both try on garments that have already been manufactured and to help with the creation of new pieces. The ability to view and try on physical prototypes of clothing may help bring certain fashions to life, depending on what the customer wants. You never know what this might do for the fashion industry.
This ensures there won’t ever be excess production of non-demanded merchandise, which could result in waste.
Being committed to sustainability will help us all contribute to a better tomorrow. It will also increase brand loyalty. McKinsey says that 63% Europeans regard sustainability promotion by brands as an important purchase factor.
#3: AR holds the key to unlocking the Metaverse
The Metaverse has been a major topic in discussions about the future and society. In 2021, 7200% more internet searches were made for “metaverse.” Although mass adoption for the Metaverse is not possible right now due to its complexity, it will continue to be important in the long-term. AR gives retailers and brands the chance to explore all the possibilities in the Metaverse.
Two huge sales opportunities can be found in the Metaverse for brands: selling avatar-generated digital clothes and setting up virtual stores where users can buy real clothing. While this sounds like delusional, it is actually quite possible.
Online shoppers spent $60-70billion on virtual goods via video games in 2021. That means there are many people who are familiar with buying digital clothing, accessories, or cosmetics. The second option makes e-commerce shopping more immersive. It’ll make what was once a boring process more enjoyable.
The Metaverse can also be used to increase marketing. It’s a place that brands and retailers can connect with their audience and display their products. Metaverse will help sellers make better offers to their customers as well as develop loyalty programs.
One could wait until Metaverse is well-known and popular. However, retailers and brands will have to chase those who chose to make their presence there earlier. It is not difficult to be an early adopter rather than catch up.
#4: AR allows Gen Z to connect
Gen Z consumers are now in control, and retailers and brands struggle to figure out the best way to communicate with them. These young people have grown up in technology and ecommerce must speak to them in the exact same innovative language. They make smart financial and ecological decisions, and they see shopping as more than a transaction.
Gen Z consumers will often thoroughly evaluate clothes before purchasing. It’s important that ecommerce provide them with convincing data. AR tryon is a powerful tool to persuade Gen Z because it helps form a better informed opinion. It offers new opportunities to engage with Gen Z online, through social media and Metaverse.
In terms of social media, young people see apparel as a tool for creativity and self-expression. A statement look for a post to a social media platform requires that it be worn only once. It isn’t very environmentally-friendly.
Gen Z cares deeply about the environment. They make an effort to reduce environmental pollution. They understand the advantages of digital clothing. They’ll also appreciate the option to have physical clothes made on request.
#5 AR facilitates new talent discovery
Financially, it can be hard to start your career as a fashion designer. For their first products and collections, fashion designers must often invest their own money. They also need to purchase textiles, accessory garments, and other materials. Models are necessary for a presentation that is both impressive and professional.
Emerging creatives can showcase their collections using AR, which is more sustainable and financially sound than traditional methods. Augmented reality can also make fashion competitions more accessible to young designers, without limiting geography and money. These contests may even become part of the Metaverse.
As a consequence, the fashion industry will become democratic and more talented designers will have the chance to be part of it.
It is easier to sell clothes online than in a brick & mortar store. But, aspiring designers need to connect with their customers. This requires digital tools. Designers that are unknown to the consumer are usually a red flag. The process of changing consumers’ minds requires a lot.
Forecasting the future could seem pointless, because predictions can’t always be accurate. There are always the black swans, who wait for their chance to make an impact and change the game. AR will be able to improve ecommerce. But that’s not a prediction. It’s happening already.
Retailers and brands that are forward-thinking are more inclined to experiment with this technology. They see how this technology can solve their problems as well as open up new opportunities.