The eCommerce landscape is transforming at an unprecedented pace. Online retail sales are at a staggering $6.3 trillion globally, with 22.6% of all retail purchases expected to be made online by 2027. So your business needs to keep up to stay competitive and continue to meet consumers’ ever-increasing demands.
However, as digital shopping grows, so does the desire for more immersive and interactive experiences creating the next iteration of that ‘in-store’ feeling. Immersive shopping blends digital innovation with the tactile, engaging qualities of brick-and-mortar retail.
What Is Immersive Shopping?
Immersive shopping is a retail approach designed to create interactive and unforgettable experiences that merge the digital with the physical world. By leveraging advanced technologies like augmented reality (AR), virtual reality (VR), and live shopping, this strategy transforms your customer journey into a more engaging and dynamic process.
The Technologies Behind Immersive Shopping
Immersive shopping relies on a variety of advanced technologies that bring products to life and enhance the customer experience:
Augmented Reality
Augmented Reality seamlessly overlays digital content onto the real world, giving customers a unique way to visualize products before buying them, for example, through AR headsets, such as Apple’s Vision Pro, or their smartphone cameras.
Customers can use AR to visualize how a new sofa would look in their living room or virtually try on makeup to find the perfect shade. Augmented reality eCommerce lets consumers realistically evaluate products in their own space, boosting conversions and decreasing the likelihood of returns.
The interest in AR is particularly strong among younger generations. 41% of Gen Z and 39% of millennials showing a preference for augmented reality online shopping. Plus, in 2023, 37% of online shoppers in the US expressed a desire for more virtual and augmented reality features in their shopping experience.
Although AR is a growing market with a projected compound annual growth rate (CAGR) of 41.5% by 2029, it’s still largely untapped by retailers. Hence, there is still an opportunity for your business to profit from being one of the first movers.
Virtual Reality
VR uses headsets to simulate a full virtual environment in 3D. Virtual reality in eCommerce transports customers to entirely virtual worlds where they can move around and interact with products in ways that mimic real-life shopping.
For example, customers can use VR to visit virtual showrooms to explore a new car model. Interior designers can use the technology to present virtual walk-throughs of their designs, allowing clients to experience spaces before they’re built. In contrast to AR, which aims to insert digital elements into the real world, virtual reality shopping focuses on crafting completely virtual experiences.
Live Shopping
Live shopping is a retail strategy where brands sell products in real-time through live video streaming online. Through platforms like Instagram and TikTok, your brand can showcase products in real-time, answer questions, and foster engagement. Viewers purchase products directly during the livestream, creating a sense of urgency and excitement. This interactive format boosts engagement and leads to immediate sales.
In the last decade, live shopping in eCommerce grew rapidly in popularity in China. Here, it’s become a dominant force in retail – and it’s also showing strong growth in the US and Europe. In fact, nearly half (46%) of consumers have expressed interest in participating in livestream shopping events.
European customers in particular enjoy using it for clothing purchases, followed closely by skincare. Recently, Zara expanded its live shopping broadcasts to the UK, Europe, and the United States after seeing significant success in China. Zara’s live shows attracted around 800,000 unique viewers per show, and their approach helped them sell out 50% more products in various sizes during the first quarter of the year compared to the same period in 2023. Other brands and retailers, including Nordstrom, Levi Strauss, and KitKat, have also executed successful live commerce campaigns.
Gamification
Gamification involves integrating fun, game-like elements, mechanics, and rewards into retail environments. Retailers can set challenges and tasks that buyers must reach or solve to gain a reward. It’s a popular format to keep customers in loyalty programs engaged.
It gives consumers a sense of reward and achievement, driving them to spend more time exploring your brand’s offerings – increasing engagement and conversions.
Why Immersive Shopping Is Transforming eCommerce
Consumers are increasingly demanding more interactive and personalized shopping experiences. In fact, 82% of consumers say that personalization impacts their brand choices at least half the time when shopping. Immersive shopping technologies like live shopping, AR and VR in eCommerce are perfectly poised to meet these new expectations.
Here are some of the transformative qualities of immersive shopping technologies:
- Enhanced product visualization and engagement: Immersive shopping allows customers to interact with products in a more tangible and meaningful way. For example, AR allows customers to visualize products in their own environment or on themselves, reducing product uncertainty. 66% of consumers who use augmented reality for online shopping are likely to make a purchase after interacting with a branded AR experience, especially with features like virtual try-ons.
- Personalized and memorable experiences: By understanding customer preferences and behaviors, brands can provide more tailored recommendations, offer virtual try-on sessions, and showcase interactive product demonstrations. This kind of personalization not only enhances engagement but also builds stronger emotional connections with customers, which in turn drives brand loyalty.
- Global reach and accessibility: With the ability to transcend geographical barriers, immersive shopping allows customers to explore virtual showrooms, participate in live shopping events, and interact with brands from anywhere in the world. This capability opens up new global markets for your brand.
Use Case: Immersive Shopping with IKEA Place and Fielmann’s Glasses Configurator
The most profitable brands are using immersive tech to drive profitability. Swedish flatpack furniture giant IKEA can claim one of AR commerce’s biggest success stories to date – its app IKEA Place.
It allows customers to virtually place IKEA furniture in their own spaces. By scanning their room and picking products from the IKEA catalog, users can bring those products to life in their own homes.
The app helped IKEA remove the guesswork involved in furniture shopping, allowing customers to confidently choose items that complement their existing spaces, reducing product returns by 20%. Meanwhile, online sales spiked by 35%.
Similarly, Fielmann, a leading European eyewear retailer, has implemented a virtual try-on feature that enables customers to try on and fit glasses online. Through the AR-powered tool users can see how different frames will look on their faces in real-time, taking into account their facial features and prescription lenses. This personalized shopping experience helps Fielmann customers feel more confident in their choices, reducing the need for physical try-ons and boosting conversion rates.
By integrating immersive technology, both IKEA and Fielmann continue to revolutionize the shopping journey, making it more interactive, personalized, and convenient.
How to Implement Immersive Shopping for Your eCommerce Business
Here are three key steps for businesses to successfully introduce immersive shopping.
1. Start small: With the endless possibilities of immersive shopping, it can seem tempting to go ‘all-in’. However, starting small can help you understand how your customers respond to immersive experiences, how well they work for your business, and what improvements you need to make. AR-powered virtual try-ons or interactive product videos are a good place to start.
2. Use live shopping eCommerce platforms for real-time engagement: These platforms are great for hosting real-time product demonstrations, Q&A sessions, and offer exclusive promotions.
3. Explore VR and gamification: For a truly immersive experience, consider offering VR showrooms or introducing gamification elements to your online store. This creates a sense of fun and excitement for your customers and is proven to reduce the hurdles to buying items online.
The key here is to start experimenting and identifying what works best for your brand and audience. Every business and industry is unique, and techniques that work for some products may not work for others. Taking a gradual approach to implementing these technologies gives you the best chance of getting the most out of immersive shopping.
Interested in how AI can further optimize your immersive shopping strategies?
Check out our blog on Mastering AI in Retail to see how advanced technologies can drive your success.
Future Outlook: Beyond the Metaverse
While the Metaverse has offered a glimpse of what’s possible in the digital realm, its future remains uncertain, with mixed press and fluctuating developments in recent times. However, this initial concept has provided insight into how immersive shopping might continue to evolve, even if it doesn’t manifest as the Metaverse itself.
Imagine walking into a fully interactive digital storefront where you can browse products, virtually try on clothes, and invite friends and family to share the experience. This vision shows how future immersive technologies can create innovative and engaging shopping experiences, seamlessly connecting shoppers worldwide. The potential to customize these experiences offers retailers a unique opportunity to blend creativity and personalization on a global scale.
Start Working on Your Immersive Shopping Strategy
Immersive shopping is shaping the future of eCommerce by seamlessly merging digital innovation with the personalized engagement of physical retail. When integrated with omnichannel retail trends, immersive technologies like AR, VR, and live shopping create a unified and dynamic customer experience that spans both online and offline touchpoints. By adopting this strategy, your business can enhance customer engagement, boost personalization, and drive profitability, positioning themselves for success in the evolving retail landscape.
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