For Brands and Retailers: How to Engage and Win Online Shoppers in 2022 Free Guide
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  • AR Solutions
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  • AR Solutions
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Category: Augmented Reality

February 8, 2023

AR/VTO – The Secret to Reduced Returns?

Returns are a common aspect of retail and eCommerce businesses, affecting both brick-and-mortar stores and online retailers. They’re also a common aspect of eCommerce and can have a significant impact on businesses both positively and negatively. On one hand, a well-managed return process can increase customer satisfaction and loyalty, leading to repeat business and positive reviews. On the other hand, a high rate of returns can result in financial losses and decreased customer satisfaction. The good news is, we’ve got the perfect solution for you! With Augmented Reality and Virtual Try-On technologies, returns are made more scarce and are less prone to affect businesses. In fact, brands offering VTO see an average of 64% fewer returns. 

 

Statistically speaking, at least 30% of all products ordered online are returned as opposed to a much lower 8.89% return rate for brick-and-mortar stores. So, how do returns affect retail and eCommerce businesses? And how does AR/VTO offset the negative consequences of high return rates?

How Returns Negatively Impact Businesses

According to the National Retail Federation (NRF), in 2022, $1.29 trillion of total US retail sales were conducted online, with approximately $212 billion of this amount being returned.

 

In eCommerce, returns are a result of a variety of factors. Research reveals that the top reasons for returns are incorrect sizing & fit (70%), defective products (65%), or a mismatch between customer expectations (49%) and dislike for the product (32%). Returns can also result from factors that are outside the control of businesses and can negatively impact businesses in several ways, such as:

 

  • Increasing operational costs
  • Decreasing profitability
  • Negatively impacting customer satisfaction
  • Creating inventory management challenges
  • Decreasing product availability

In numbers, this means – according to estimates – that the cost of returning a $50 product is approximately $33, which includes processing, transportation, liquidation losses, and product discounting expenses. Can you imagine how massive this is? In simpler terms, returns account for ⅔ of the revenue of the product. And that’s not even the tip of the iceberg. There is also a negative impact on the environment. In fact, it was estimated in 2020 that all returns produced 16 million metric tons of CO2 emissions and 5.8 billion pounds of landfill waste (10% of which was disposed of in landfills).

 

To mitigate the negative effects of returns, businesses must implement effective return policies and processes that are convenient for customers, maintain their satisfaction, and minimize financial losses.

How is VTO Changing the Future of Returns?

One way of combating high return rates is the integration of Augmented Reality and Virtual Try-On (VTO) technologies in eCommerce platforms. As we enter the era of VR and AR, it only seems fair we start harnessing these technologies into the retail sector. With the rise of eCommerce, AR & VTO technologies help reduce returns by allowing customers to virtually try-on clothing, makeup, and sunglasses and visualize home furniture/decor items in their own space before making a purchase. The implementation of such technologies can result in significantly reduced return rates; which is attributable to numerous reasons, including:

 

  • Increased Buyer Confidence: By allowing customers to try on items virtually with exact size & fit, VTO technology can increase confidence in purchases, reducing the number of returns and increasing conversions
  • Reduced shipping costs: By reducing the number of returns, AR/VTO technology reduces the shipping costs due to returned products.
  • Reduced negative impact on the environment: By reducing the transportation and packaging waste generated by the return process.
  • Improved customer experience: By providing customers with a more accurate representation of a product before making a purchase, AR/VTO technology can enhance the overall shopping experience, reducing the likelihood of customer dissatisfaction and returns.

 

Better product visualization: VTO technology provides customers with a digital-twin visual representation of a product, including accurate fit, color, and style, which can help reduce the number of returns due to product dissatisfaction.

To Sum it Up

Augmented Reality & Virtual Try-On technologies significantly reduce the number of returns made by customers. VTO allows customers to try on items virtually helping them make more informed purchasing decisions and reducing the likelihood of receiving a product that does not fit or meet their expectations. It can thus enhance the overall shopping experience and increase customer satisfaction.

 

As customers become more confident in their purchases, retail and eCommerce businesses will waste fewer resources shipping products, save on packaging costs, and hopefully, build a more sustainable environment for people to shop in. The new era of online shopping begins here…

 

Are you looking to upgrade your audience’s online shopping experience to a more engaging, interactive, and effective one? Schedule a demo now to learn more about how we can help you.

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224
Team@Designhubz
January 25, 2023

Top 4 Web3 Predictions for 2023

We live in a truly exciting era. The Metaverse, a new virtual dimension powered by Web3 technology, holds the promise of virtual reality, new business models, and more importantly, new ways of living, working, playing, and shopping. In fact, according to a report from KPMG, demand for luxury goods in the metaverse could reach $50 Billion by 2030. But first, what is Web3?

Simply put, Web3 is the internet’s third major evolution. It’s a whole new vision for the internet and a revolutionary way to explore new realms of business. It encompasses both new technology and a new culture for luxury, fashion, and beauty, characterized by decentralization, co-creation, and co-ownership, thanks to blockchain-enabled advancements such as NFTs and cryptocurrencies. So with this blockchain-based version of the internet establishing itself, we can’t help but wonder: what are the Web3 predictions for 2023? Read on to learn more.

1-Virtual Mascots for the “Phygital” World

Blurring the line between the physical and digital world was always a buzzing area in 2022, and it’s taking on new heights and challenges in 2023. Indeed, tapping into brand partnerships and ambassadors is no longer a thing of the real world only. Thanks to Web3 technology, traditional influencer marketing will reach new extremes, ushering the way for new virtual mascots. These Web3-native mascots will enable brands to tell better stories and will thus create new brand partnership opportunities and ultimately, a stronger community in the “phygital” world.

2-Seamless Product Authenticity and Resale Programs in Web3

Another trending area that comes with Web3 technology is product authenticity. In fact, there’s a growing number of brands that are focusing on implementing technology that proves authenticity and reduces counterfeiting opportunities. Why, might you ask? Simply put, brands have discovered that adopting a long-term strategy that offers buyers and consumers genuine value increases demand and customer loyalty. So much so that some brands have gone as far as integrating Physically Backed Token (PBT) chips into their products, thus harnessing exclusive blockchain ownership verification technology. Consumers are also looking for ways to verify and track their assets, which brings us to the concept of blockchain technology that demonstrates one’s status in Web3. This technology also offers new opportunities for resale models and secondary value. Since originality and rarity are – much like the physical world – attractive selling points for luxury consumers, it only seemed right that it would be the same in Web3.

3-Digital Fashion Marketplaces

In the real world, this is a trend that has been growing with each coming year, as consumers are always on the lookout for more affordable and accessible alternatives to luxury products. As we all know, immersive virtual shopping experiences have been taking the luxury industry by storm, with big brands such as Gucci, Adidas, Dior and so many more, riding the Metaverse wave. This year, the ante has been upped with Web3, as digital fashion marketplaces race to make luxury in the metaverse even more accessible. According to Roblox’s “2022 Metaverse Fashion Trend Report”, nearly three in four respondents said they will spend money on digital fashion. Now picture this in 2023 with a newly accessible digital fashion marketplace…

4-Digital-Only Fashion Houses

One thing we know for sure about Web3 technology is that decentralization is at the forefront of its advantages. It basically puts ownership in the hands of individuals, enabling creatives to own and monetize their work. With that in mind, this has pushed independent designers and digital-only fashion houses to create collectibles and sell them as NFTs. An example of a digital-only fashion house is The Fabricant, a brand that creates products for the digital realm by harnessing its imagination to the biggest extent. Combining this with the fact that Web3 is an innovative and exciting place for creativity, we are now only limited by our own imagination and we can, as consumers, live digital lives and express ourselves in virtual realities.

To Sum it Up

The concept of Web3 introduces a decentralized economy and paves the way toward digital-only assets, spaces, and experiences. By exploring a space that is free from any corporate hand, Web3 and blockchain technology guarantee the integrity of the space, especially in ‘virtual fashion’. The individual is hence given more power to keep their digital identity safe giving brands an additional reason to slowly but surely move towards a combined experience for their consumers. An experience that is not constrained to any third party but a foray into a virtual reality that boasts self-expression, sustainability, and a story-telling aspect.
How far do you think luxury brands will venture into Web3?

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216
Team@Designhubz
January 11, 2023

Top 5 Technology Trends to Expect in 2023

Welcome to the Digital Age, where AI and the Metaverse stand right at the forefront of businesses, significantly impacting the way we consume and buy products. Today’s world is becoming more and more digitally connected, and the changes that have been affecting the retail industry are – now more than ever – driven by technologies such as Artificial Intelligence, Augmented Reality, Blockchain and personalization.

As January is traditionally the month in which we pause to reflect on the new year and the emerging trends that will shape the industry, we take a minute to ponder a crucial question: Which technological advancements should we be on the lookout for in 2023? From the increasing importance of Web3 to the Metaverse and so forth, we look ahead to identify the tech trends that will shape the future of retail.

1-The Rise of the Metaverse

Well, let’s call it a “continued” rise instead. As retailers look for more ways to engage and connect with consumers, they turn to the Metaverse, a virtual world where people can immerse themselves in exciting digital experiences and interact with each other and with a series of digital objects. The increasing use of VR technology in the retail sector has generated a rapid growth that is expected to reach $45.09 billion by 2027, according to a report by MarketsandMarkets. As the Metaverse continues to evolve, it will be offering its global audience the possibility to explore virtual stores and showrooms, allowing retailers to tap into new markets, enhance customer experience and drive business growth through valuable data. Both VR and AR are making their way through the world of innovative retail, introducing new concepts such as the virtual dressing room trend, which is expected to become more and more common in 2023.

2-The Development of Web3

For those of you who are not familiar with this concept, Web3 is the decentralized web, powered by blockchain technology that enables the creation of secure and transparent networks. These networks can be used for various purposes and allow users to connect directly to the internet, giving them more control over their online experiences. And so, Web3 can also take the form of decentralized “play-to-earn” video games that reward players with crypto tokens, and platforms that allow people to buy and sell NFTs. By giving users greater control over their data and interactions, Web3 is ushering in a new digital era, reshaping the internet as we know it without a central authority.

3-New Heights for AI

The global artificial intelligence in the retail market is expected to grow at a compound annual growth rate of 23.9% from 2022 to 2030 to reach USD 40.74 billion by 2030. Indeed, AI is transforming how retailers interact with their customers by ushering in a new era of digital innovations, from chatbots to personalized recommendations, automated customer service, and predictive analytics. But it’s not just about improving customers’ experience, it’s also about helping retailers optimize their operations such as inventory management and supply chain logistics.

Additionally, in this increasingly competitive market, Al is being utilized to analyze customer data and offer insights that can aid in smarter business decisions. Retailers may hence better understand the interests and behaviors of their customers, which will result in more focused marketing efforts and sales.

4-A Warm Welcome to Hybrid and Omnichannel Customer Journeys

First and foremost, what’s a hybrid customer journey? It’s a combination of online and offline channels, allowing consumers to shop both in-store and online…or even through a combination of both formulas.

But then what’s an Omnichannel customer journey? It’s a seamless experience that makes switching between online and offline purchasing smooth across all channels. By bringing the best of both worlds together, retailers can thus offer consumers the same immersive shopping experiences they can enjoy in real life with cutting-edge technology, customization, and applications for Virtual and Augmented Reality. As the customer journey becomes more and more complex, and as consumers continue to demand flexibility and convenience in their shopping experiences, it only seems fair that retailers turn to hybrid and omnichannel approaches.

5-Connecting the Digital and Physical Worlds through Augmented Reality

One of the top trends for 2023 is “bridging the gap between the digital and physical worlds,” which means combining the online and offline shopping experiences. To make it easier, it’s about finding ways to use technology and AI to enhance the physical shopping experience. And yes, this obviously means going through Augmented Reality, Virtual Try-Ons, personalized product recommendations, and so on. In fact, in just a few years, Virtual Try-On technologies have exploded in popularity as consumers have been craving a unique and immersive customer experience above all else. It’s through this connection that retailers will be able to create a seamless journey for their customers.

What’s the final take on tech trends?

One thing we know for sure is that retailers are turning to technology in a series of innovative ways, on both online and offline platforms. Technical advancements are expected to cause significant changes in the retail sector over the next few years, affecting the way we purchase and do business in the digital era. Nike, Burberry, Ralph Lauren, and Adidas are among the numerous well-known brands that have already ridden the tech wave; it’s only a matter of time until the Metaverse and AI become integrated into our everyday lives.

Blog summary:

Retailers have been leveraging the power of technology to provide customers with exciting new ways to browse and buy products. As we become more digitally connected, we enter a new era of digital transformations and usher in new ways to keep consumers on their toes. So, here’s an overview of some of the top tech trends on our radar for 2023. Read on to learn more.

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215
Team@Designhubz
January 4, 2023

Top 7 Reasons You Should Power Money into VTO & AR in 2023

Have you ever wondered which brand was the first to use Virtual Try-On Technologies? Well, it was Converse who, back in 2012, used the Sampler App developed for iPhones to show users, through their phone cameras, how shoes looked on them in real life. In fact, that was the beginning of an immersive journey that would push markets to believe in the power of augmented reality.

With online shopping being one of the most popular online activities worldwide, it only seems fair to up the ante and make digitization a big part of businesses’ lives, considering the way it impacts consumers’ decision-making processes and shopping patterns. According to Statista, the AR market is expected to reach a whopping $198 billion in 2025, which is why retailers and businesses need to provide engaging and immersive customer service experiences, such as Virtual Try-On technology, to gain a competitive advantage. Need more reason to do so? Read on.

But Really…Why?

1- Immersive online shopping experience:

Gone are the days when customers used to be satisfied with their usual “advanced technologies”. Now, it’s all about interacting with products, trying them online, testing them, and sharing them within communities. Long story short, augmented reality and virtual try-on technology can provide a more immersive and interactive online shopping experience, boosting customer loyalty and sales. 

AR and VTO technologies offer as well an increased convenience for customers. Did you know that 79% of consumers are interested in exploring the world with AR?

Indeed, by providing consumers with the ability to explore a virtual space from the comfort of their own homes, brands can give themselves a competitive advantage as well as the capacity to satisfy their customers’ growing needs and expectations. After all, customers can now virtually try on products without physically visiting a store or trying them on in person, thanks to virtual try-on technology. Customers can save time and effort by doing so, making purchasing so much more convenient.

2-    Increased sales and eCommmerce conversion rates:

Here are some interesting facts: 83% of brands that are already using AR have implemented virtual product trials. And, 84% of brands that use AR say it helps drive sales, acquire new customers, and drive performance metrics. With this in mind, AR allows brands to deliver a message with impact, making the shopping experience that much easier. And so, by enabling customers to virtually try on products and visualize them in their own space, brands see a considerable increase in eCommerce conversion rates as customers feel more confident about their purchases. In fact, according to Shopify, the website reports a 200% boost in conversions when AR is used for product visualization.

3-    Improved customer satisfaction and loyalty:

Defining customer satisfaction can depend on a lot of factors. But there is one certified way that gets the ball rolling: AR. AR and VTO technologies give customers a better way to buy, all the while transforming the way they shop and delivering a more innovative buying experience. In fact, research shows that 74% of consumers agree that AR helps them shop in exciting ways. Brands may increase customer satisfaction and lower return rates by allowing customers to try on products before making a purchase.

When it comes to customer loyalty, 4 in 5 brands that used AR lenses/filters improved their brand awareness, making for an enhanced shopping experience. Indeed, a more interesting and personalized shopping experience can be created using virtual try-on technology, which may boost client loyalty. These experiences go beyond expectations, immersing users in an exciting journey. Brands that create applications using AR and VTO can turn transactional experiences into long-term loyalty.

4-    Better product visualization:

Play, feel, and experiment with the item. With the help of augmented reality and virtual try-on technology, customers can preview how products look in their own space or even on them before making a purchase. When it comes to products that customers want to “touch and feel,” like shoes, clothing, accessories, jewelry, and make-up, this technology works quite well. Additionally, they are completely free to make decisions, test items at their own pace, and make choices without feeling compelled to buy before making an informed purchasing decision.

AR is also taking Furniture/Home Decor to another level, allowing and empowering consumers to properly visualize and place virtual furniture in their own space. Furthermore, customers are able to see potential layouts, getting an idea of how furnishings and home appliances would function in their chosen environment.

5-    Reduced physical inventory and cost:

Who needs inventory when augmented reality is there to reduce the need for a physical sample? As VTO enables customers to try on products and visualize them without the need for a real-time product, brands are finally able to reduce the amount of physical inventory and, ultimately, their environmental footprint. Indeed, with virtual try-on technology, customers can try on products in an immersive space, examining the fit, style, and feel of the product at hand.

When it comes to Augmented Reality, furniture stores no longer need to have a physical item in different colors or textures, for customers to come and see. They can offer their customers the ability to see and browse different products through AR.

If we take into account the average costs associated with physical products, we will probably think of logistics, warehousing, restocking, labeling, and returns. Virtual try-on technology can help brands save on costs related to physical inventory management and in-store demonstrations. This groundbreaking AR technology also helps reduce returns, which means lower costs and more fluid supply chains.

6-    Enhanced product personalization:

40% of marketing executives report that personalization has a direct impact on maximizing sales. Certainly, with the help of 3D product configurators, VTO offers customization to clients so that they can create personalized products in which they can express their personalities and sense of style. By doing so, companies can boost revenues and help drive sales.

7-    Increased reach:

Virtual try-on technology allows brands to reach a wider audience, as customers can try on products from anywhere in the world with a valid internet connection. It also turns a lot of the disadvantages of online shopping into benefits. Can’t visit the store? Then customers can quickly view more possibilities online. Can’t touch the products? But they can compare and see the exact size and fit and style for themselves. By bringing an immersive experience to online shopping, companies that use VTO are able to reach a wider audience, bringing the in-store shopping experience to the online realm, from anywhere in the world…

In a nutshell

As a lot of brands have now been dabbling with the magic of Virtual Try-On technologies, it seems futile to stick to average methods to drive sales and gain brand awareness. It is fine time to hop on the wagon and give customers a real-life shopping experience from the comfort of their own homes.

The future of AR technologies is one of endless possibilities and ground-breaking experiences that will revolutionize the way users shop and consume products. Will we someday be able to buy outfits we spot while watching Netflix or playing video games, with a simple click of a button? Who’s to say…

Are you looking to upgrade your audience’s online shopping experience to a more engaging, interactive, and effective one? Schedule a demo now to learn more about how we can help you.

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215
Team@Designhubz
December 24, 2022

Where the Metaverse and Virtual Try-On Experiences Collide

Introduction

Back in the day, shopping was strictly limited to being a tangible experience. Along came eCommerce, and suddenly the whole world shifted to shopping on platforms with limitless possibilities. Fast forward to today, Virtual Try-On technologies and Augmented Realities have forever changed the way we consume. Shopping online has now regained some of its tangible qualities, blurring the lines between reality and the virtual world. 

Picture this: you’re using your phone and are looking to buy a new pair of sunglasses. Well, the Metaverse, in all its glory, takes you to an immersive 3D virtual space where you can experience shopping in ways you are not able to in the physical world.

But why in the Metaverse? Spending so much time online makes users crave the unusual, hence the proliferation of VR and AR experiences in the universe of shopping.

Today, brands increasingly rely on technology and digital innovation to catch customers’ attention and present them with added value. And now, with the Metaverse, they’re giving them the chance to venture into a whole different world with just a click of a button. But our question remains: how do the Metaverse and Virtual Try-On technologies collide? And how do NFTs fit into the equation?

The Metaverse and VTO

At this point, we’re all familiar with the concept of Virtual Try-on and the complex constituents of the Metaverse. But did you know that the two technologies can come together and form one groundbreaking experience for users?

Let’s first start off by saying that the Metaverse is evolving in the tech sector with a predicted $800 billion market opportunity by 2024. Second, shopping in the metaverse means shopping beyond space and time. But with VTO, it also means that shoppers are allowed to wander through virtual stores, browse for products within virtual reality, and the best part of it all, try-on products such as eyewear and makeup and visualize objects in their spaces with AR. And so, we are now able to immerse users in this virtual world by still being able to integrate the “tangible” side, merging two worlds together for an enhanced shopping experience.  

Indeed, some brands offer virtual spaces that are intensified with gamification and NFTs marketplace. Take Timberland, for instance, the footwear brand created a digital experience entitled “NL Sky”, where users can walk in their favorite Timberland shoes and go on a virtual adventure toward the Metaverse! The same was created by Dior with the “Dior Walk’n’ Dior” virtual space and Puma’s “Puma RSX3”.

As new trends take over the fashion world and new shopping experiences arise, the global AR, VR, and Metaverse market will roughly reach $300 billion by 2024.

What’s the Deal with NFTs and VTO?

We’ll get to that. But first, what are NFTs?

Non-fungible tokens are unique, digital representations of assets living on a blockchain. They’re a new type of virtual asset that can also be described as intangible, be it an image, a video, or an in-game object. NFT owners and collectors can trade digital assets while the blockchain records all valuable details.

By incorporating digital assets into their strategies, brands have been using virtual spaces and NFTs into one combined experience, i.e, users are thus able to purchase NFTs in a form of digital fashion apparel within a virtual marketplace. On top of it all, through Augmented Reality, NFTs can now be visualized in the user’s space before purchase, adding that much quality to the experience.

In this highly competitive world, brands are trying to gain a competitive advantage by using metaverse technologies to retain customers and boost customer loyalty. This is mostly done through virtual spaces and NFTs, allowing users to seamlessly travel to a virtual world created by the brand itself. One example of NFTs being incorporated with VTO is Brazilian Beauty brand Boticario, which celebrated the Lipstick Day by sharing a collection of NFTs and allowing users to experience a world of product visualizations, beauty showrooms, and virtual campaigns.

The Bottom Line

It’s time to bid farewell to your run-of-the-mill shopping and welcome a new era of fashion where AI, comfort, and ease are high on top of the list. Top brands such as Ralph Lauren and Nike have also adopted digital solutions, creating digital worlds and immersive 3D spaces where users can take advantage of a wide range of products and virtual showrooms, becoming the star of the campaign!

AR, VTO and the Metaverse are not just fads, they’re certified ways to generate and increase sales, and familiarize the customer with the product through a customized retailed landscape and virtual galleries. 

Are you looking to upgrade your audience’s online shopping experience to a more engaging, interactive, and effective one? Schedule a demo now to learn more about how we can help you.

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215
Team@Designhubz
December 14, 2022

Digital Fashion – Shaping the Future of Fashion

Introduction

Interesting Fact: In 2021, Gucci teamed up with one of the most renowned gaming platforms Roblox, to showcase Gucci hats, sunglasses and handbags in avatar. This initiative allowed fashion enthusiasts to buy collectibles and rare Gucci accessories.

Another interesting fact; Dior collaborated with Meitu, a well-acknowledged Photoshop application for pictures and selfies, to create an AI makeup feature that matches makeup based on user characteristics.

And that’s just the tip of the iceberg, as a myriad of fashion brands have been venturing into the Metaverse leveraging digital fashion trends and offering consumers limitless possibilities of self-expression. But as complex as digital fashion is, a whole lot of questions come to mind: What is really digital fashion? And what’s the Metaverse?

Digital Fashion 101

It seems like such an easy term to define, yet beneath it lie countless possibilities and multifaceted descriptions. Let’s make it simple for you: digital fashion is virtual 3D clothing, designed with both humans and digital avatars. In other words, instead of using real-life fabrics, digital garments are created through 3D computer programs. Why is it gaining popularity over the last couple of years, might you ask? Simply put, it’s inexpensive, sustainable and has no creative constraints. In the digital world, you could be whoever you want to be…interesting, right? In fact, what’s even more interesting, is that according to Morgan Stanley, the digital fashion market alone could be worth $50 billion by 2030.

Digital fashion uses technologies such as Augmented and Virtual Reality to encourage users to express themselves with complete freedom, limitless imagination and infinite production. As the world becomes more and more digitized, brands are experimenting with the digital world, hence creating immersive experiences for users, and offering them the chance to be whoever they wish to be in this virtual reality they’ve created.

For apparel retailers, digital fashion is expected to be a significant revenue driver, as brands invest millions of dollars in opening virtual metaverse stores that allow customers to shop through on-site eCommerce collections with NFTs.

Now why is it so important? Digital Fashion caters to Gen Z’s need to express their own identity through fashion, providing them with a digital identity and ownership with the unique ability to go all out in terms of creativity.

But Then What’s the Metaverse?

The Metaverse is quite a complex and ambiguous term that we’ve all struggled to define and understand, as it is still evolving and developing functions till this very day. But one thing we can definitely say about it, is that it’s a shared and immersive 3D virtual space where humans experience life in ways they cannot in the physical world. It’s a place that unlocks doors to limitless possibilities and where freedom is a bit too stimulating. In fact, 23% of people would actually spend a lot of money on collectible clothes and accessories in the Metaverse.

Digital Fashion was thus built to be integrated in the Metaverse. Take influencers for example; with the recurring problem of “how many outfits can one really own”, the Metaverse offers them a place where they can invent even more looks, instead of wearing clothes just once and discarding them afterwards. Here, we tap into the eco-friendly side of the Metaverse, and the growing need to create an industry that is more sustainable and mindful when it comes to fast fashion and consuming clothes.

And so, virtual fashion can either be reflected onto an avatar or worn using Augmented Reality. For instance, social media platforms have also been adopting digital fashion, such as Snapchat’s Avatar lens that shows you what you’ll look like in the Metaverse.

The Metaverse is, by all means, part of the evolution of how users experience the internet; it raises the question of “what if” and offers countless possibilities in return. It hence goes without saying that retailers and brands who arm themselves with VR tools, are more likely to succeed as they offer users immersive experiences such as Virtual Try-On. The ability for one to virtually try on products makes the process that much more fulfilling and – bonus to the environment – saves time and effort through reduced logistics and resource costs.

The Future of Fashion

There’s a growing concern that virtual stores in the metaverse will replace traditional shopping and retail channels. The fact is, these two worlds complement each other as we become more and more digitized. It goes without saying that clothes are meant to be worn…in real life. Having the freedom to wear and be whatever you want in the virtual world is just another bonus, especially with the wide shift to sustainable fashion.

The future of retail is an exciting world to look forward to as the online industry seems like a natural evolution. As people devote a big chunk of their lives to the online space, the Metaverse is the perfect opportunity for them to dabble and experiment with a new channel that will eventually better prepare them to offer the best experience to future consumers. Perhaps the future of the fashion industry is not a black and white matter…perhaps it’s a playground where different worlds collide to create a little something called “Mixed Reality”.

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213
Team@Designhubz
December 7, 2022

3D Models – The Future of eCommerce is Right Here

Introduction

Did you know that despite the looming global recession, Black Friday’s online sales surpassed a record-breaking $9 billion? To top it all off, Black Friday shoppers also broke a record for mobile orders, as 48% of online sales were made on smartphones. It’s through these instances that we’re reminded of how easy and convenient online shopping can be. The way we consume products has radically changed throughout the years as we are now buying online more than ever before… and that’s just Black Friday.

Cyber Monday, the biggest online shopping day, drove more than $11.2 billion in spending this year, an 8.5% increase over last year, per the latest Adobe Analytics figures. This can be explained by the fact that over the years, consumers discovered a hassle-free method to shop without facing the high street crowds. Need we say more?

Actually, we do. With this huge surge in eCommerce, brands and retailers have resorted to creating immersive experiences to keep up with the growing trends of online shopping. Enter 3D Models equipped with interactive functions that have revolutionized the shopping experience like never before. So, what’s a 3D Model? How does it work and how do brands and retailers benefit from it?

3D Models Explained

Let’s say you’re shopping for a couch online but can’t commit to buying it without evaluating every single side of it. Totally understandable, but thankfully, that’s a thing of the past now. The introduction of 3D models in online stores has brought consumers a worry-free solution to shop online, allowing them to view products from all sides, with just a click of a button. Pegged as one of the most important innovations of online shopping, studies have shown that brands and retailers that have adopted this technology enjoy higher engagement rates, increased conversion rates, and reduced return rates.

In numbers, this means 82% of consumers activated the 3D view and a whopping 95% of them prefer an interactive 3D representation. Not that shocking when you realize that it all comes down to trust and a true visual representation of a product.

 

But that’s not even the tip of the iceberg. Once you’ve created your 3D Models, there’s a myriad of possibilities that come within this umbrella, Augmented Reality (AR) being high on top of that list. Indeed, with 3D models, one can easily create an immersive experience by integrating them into a web-based AR solution or in-app. AR gives a more accurate representation of what the product is, showing customers or potential buyers what their product will look like on them or within their own space, before committing to buying them. Currently, more than 1 billion users are engaging with AR compared to only 100 million in 2020, and, according to a study by Shopify, products having AR visualization have a 94% higher conversion rate than those without AR. And lastly, 40% would pay more for a product that they could customize in AR.

Augmented Reality is, undeniably, a critical part of eCommerce as it helps consumers make better purchasing decisions through an immersive experience that allows them to visualize the product as they would in real life.

So, How Does it Work?

It’s quite simple. There are two main ways that allow brand owners or retailers to showcase 3D models on eCommerce sites – and you don’t even have to sweat about it. Allow us to break it down for you:

Method 1:

Upload existing 3D product files to Designhubz platform for them to be processed into high-quality 3D models that can be integrated into AR on any website or in-app using Designhubz SDKs.

Method 2:

Upload 2D images from every angle along with the dimensions of the product, at which point Designhubz artists will turn them into 3D models ready to be integrated into AR.

What are the Benefits of 3D Models?

While 3D eCommerce can provide an experience that replicates the physical one, there are also various benefits to it. 3D renders of products convey information to customers that are otherwise way more difficult to describe in 2D images. Furthermore, when integrated into AR, they allow customers to experience products before purchase, promoting higher conversions and lower return rates. Finally, they give businesses a competitive advantage to succeed in a fast-paced world that is quickly racing towards innovations.

Why is 3D Important for the Future of eCommerce?

The growth of eCommerce has prompted the emergence of groundbreaking multimedia marketing and sales. And realistically speaking, 3D and AR are the epitome of marketing in all its glory and are thus essential to the survival of other eCommerce platforms. Competition will always promote innovation and improvement, which makes 3D and AR a vital part of our future and the success of companies.

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206
Team@Designhubz
November 23, 2022

Where Spatial AR Meets Furniture and Home Décor

Introduction

Throughout the pandemic, Augmented Reality (AR) has given customers a new ray of hope in one too many ways. From fashion to eyewear and makeup, the industries that have been reveling in the advantages and benefits of this immersive technology are endless. But there’s one industry that has, against all odds, forged a unified bridge between the real-world environment and the virtual one.

Indeed, the furniture and home décor sector has followed suit and has integrated AR into its very core, making it increasingly popular among customers – all of whom have been looking for ways to minimize human contact and, more importantly, avoid making costly mistakes when buying furniture online. But what’s really AR and how is it used as a form of experiential shopping?

AR: The What and the How

When speaking about spatial AR, the technology is used to create realistic simulations of furniture and home décor items, to immerse customers in a real-life experience and help them make an informed decision before making a purchase. So how does it work? It allows customers to see how a piece of furniture would actually look in their home, all the while giving them the chance to experiment with various design ideas. 

By allowing consumers to scan their space and virtually place their desired items within it, these immersive technologies have forever changed the way individuals consume products, thus giving potential buyers a truly unique experience and enticing them to come back for more.

Post-Pandemic Rise

Until 2020, attempts to use AR were limited at best, as retailers and brands were weighing the costs against potential gains. Post-covid, everything changed. The pandemic prompted a rapid shift to the digital world, as lockdowns, travel restrictions, and social distancing drew the line on the way we interact with each other. And so, responding to this complex matter, AR rose to fame, particularly during the pandemic, but stood the test of time almost two years later. Questions such as “How will I know if this furniture fits into my space?” and “Why bother shopping outside the comfort of my own home?” were most prevalent and, much to our content, still are.

Another brand to effectively convert part of its e-commerce to VTO is L’Oréal Paris, using its built-in Beauty Genius virtual makeover tool to allow consumers to try on hair colors and makeup before purchasing them.

So, What Does it Bring to the Table?

Let’s just say that the increasing interest in AR has influenced our business interactions in this post-Covid world. But let’s also mention the fact that this immersive technology empowers online shoppers to place and visualize products in their own surroundings…through the magic of technology. The key takeaways here are that AR removes online buying hesitations and boosts purchase decisions by helping shoppers accurately scale their preferences. In numbers, this means that 71% of consumers would shop more often if they used AR, 40% would pay more for a product that they could customize in AR and 1 billion people are using AR to shop now compared to only 100 million in 2020. And it’s just the beginning….

What does the future of furniture and home décor look like?

As we slowly go back to life as we know it, the myth of AR “losing its hold” on the way we shop and consume products, has revealed itself to be wrong. The message is clear, the world has changed to the point of no return, and AR is, without a doubt, going to become an integrated component of the buying experience. Indeed, this technology has become much more accessible, with better capabilities and even greater results. And the verdict is in: brands that want to create a sustainable and long-lasting relationship with their consumers need to move to AR…sooner, better than later.
If you’re looking to shift your business to AR but don’t really know how to get started, get in touch with us now and schedule a demo. The future of your business is just a few clicks awa

Are you looking to upgrade your audience’s online shopping experience to a more engaging, interactive, and effective one? Schedule a demo now to learn more about how we can help you.

Learn More

203
Team@Designhubz
November 16, 2022

Virtual Try-On: A Tech Makeover for the Eyewear and Cosmetics Industries

Introduction

It goes without saying that some products are very challenging to purchase online, especially without proper knowledge of the brand, correct size/fit, or color. After all, how would you know if an eyeshadow shade would look good without trying it on?

But if there’s one thing we know for sure, it’s that the pandemic radically changed the way we consume products. Companies and retailers have been looking for innovative ways to sell their goods – understandably so – and the market has been responding to this growing need with spectacular solutions. With that in mind, Virtual Try-On has taken the reins in elevating many sectors, particularly the eyewear and makeup industries. How have they progressed and how does VTO play a major role in their growth?

Post-Pandemic Situation

After the pandemic hit, not only did our purchasing habits change but so did the way we perceive the world. Things that were once so normal seemed so “unsanitary”, and activities that we used to do so effortlessly, seemed like such a hassle. For instance, remember going to a shopping center and trying out products or buying makeup? Well, even after Covid-19, it all still seems unsanitary, and, in the case of makeup trials, testing out a little sample on the back of your hand is just not as accurate and satisfying as really trying it on your face. The same goes for eyewear, and when you resort to online shopping, making an informed purchasing decision isn’t as evident and effective without actually trying them on.

That’s where VTO comes in…with the latest AI technology, companies and brands are now able to provide an ultra-realistic virtual experience that can vastly influence shopping patterns and decisions, just like a live experience would. Call it what you may, but this technology offers a sense of relief to brands that were once facing a few bumps in the road when selling their products online.

VTO’s increasing popularity has proven that it isn’t just a mere post-pandemic trend, it’s a full-fledged immersive experience that increases buyer confidence and builds long-term loyalty to brands and businesses.

So, What’s Happening Now?

The current state of the eyewear and cosmetics industries has witnessed a myriad of innovations and changes, allowing customers to revel in a state-of-the-art experience. In fact, studies show that 61% of buyers prefer retailers with AR experiences, and brands offering VTO see an average of 64% fewer returns.

VTO and AI tech companies and startups have partnered with fashion giants to satisfy consumers’ growing needs, and it’s been quite the success story. Take Chanel, for instance, the French luxury brand has surpassed its classic ways, rode the tech wave, and adopted VTO for its makeup section. The highly-accurate try-on experience translates the shade, texture, and intensity of the chosen product onto their customers’ faces, providing them with the confidence needed to buy make-up online, hence increasing conversion rates and reducing return rates.

Another brand to effectively convert part of its e-commerce to VTO is L’Oréal Paris, using its built-in Beauty Genius virtual makeover tool to allow consumers to try on hair colors and makeup before purchasing them.

VTO as a Game-Changer for Eyewear and Makeup?

Yes. There’s no going back to the way the retail world once was. E-commerce is now at the forefront of a brand’s strategy and adopting VTO and AR means staying one step ahead of the game. The benefits of doing so are countless, but perhaps the most important ones are related to the satisfaction of consumers. AI technology enhances the clients’ purchasing experience and increases buyer confidence, thus making customers three times more likely to buy the products. Simply put, it’s a certifiably successful way to improve marketing and sales for companies.

What’s Next?

It’s now easier than ever to buy and sell online, given all the advancements in technology. More and more businesses have created and launched their e-commerce platforms during and after the Covid-19 pandemic, resulting in a huge surge in online stores. Fast forward to today, the industry is expected to grow by almost $11 trillion by 2025 and global e-commerce sales are expected to reach $6 trillion in 2024.

We’ve been witnessing for the past two years a global trend towards digitization that is far from being over. But with the growing number of online businesses, it’s now harder than ever to stand out. One way for companies to arm themselves with a competitive advantage is to counter-attack this mind-blowing growth with the implementation of AI technologies such as AR and VTO. Consumers’ needs are ever-evolving and one should always think out of the box to stay on top of the game.

Are you looking to upgrade your audience’s online shopping experience to a more engaging, interactive, and effective one? Schedule a demo now to learn more about how we can help you.

Learn More

207
Team@Designhubz
November 9, 2022

How to Choose the Right Company for Eyewear VTO?

Introduction

The retail industry has been going through massive changes, with companies turning towards emerging technologies like augmented reality (AR) and virtual try-on (VTO) to maintain competitiveness and enhance customers’ experiences. One industry that has been very welcoming of AR and VTO is eyewear. Now, more than ever, eyewear brands and retailers are integrating these cutting-edge technologies into their eCommerce platforms to create an immersive experience, thereby increasing buyer confidence and boosting conversion rates.

What is VTO?

Virtual Try-On enables customers to digitally try products, utilizing any device equipped with a camera, such as a mobile device, tablet, and laptop. VTO enables buyers to virtually try on eyewear as they would in-store. So how does it work?

 

Picture this: you’re sifting through a website and you’re eyeing some models. And yes, shopping can be quite challenging when buying eyewear, especially online. Enter VTO: customers can try on their preferred models as part of a live online experience, using an accurate 3D model that gives them the confidence to evaluate their true size and fit with real-environment lights. The shopping experience is heightened with a high-quality 3D rendition of the models, instant switch between 3D and AR, and more importantly, the possibility of immediate colour and style variations enhanced by a personalized AI recommendation engine.

How can it benefit your business?

Let’s talk numbers. Implementing VTO can help you achieve more than a 58% increase in eCommerce conversions, decrease return rates by up to 50% and increase revenues per visit by more than 47%. Long story short, giving customers a live virtual try-on experience with a myriad of flexible possibilities will, without a doubt, increase buyer confidence, making them three times more likely to buy your products.

Today, most digital devices support augmented reality making virtual try-on solutions more accessible and popular among end-users with 71% of consumers saying they would shop more often if they use AR, and 61% saying they prefer retailers with AR experiences.

As a rich source of data and a paramount tool for enhancing clients’ purchasing experience, this technology is proving to be essential in radically progressing and enhancing marketing and sales for companies. 

How to choose the right AR and VTO partner?

Quality, Quality, Quality

The ideal partner will use the latest technologies to turn 2D catalogues into high-quality 3D models that accurately display the correct size and fit of eyewear items with high attention to detail, so much so that you might call them ‘True Digital Twins’. Once embedded in any e-commerce platform, these digitized, ready-to-use 3D and AR product visualizations will allow online shoppers to virtually try on any pair of glasses using their device’s camera, and hence enjoy an immersive shopping experience, wherever they are.

Immersive User Experience with Personalized Camera-Based Recommendations

It’s not only about giving online shoppers the possibility to picture the products on themselves, but it’s about delivering a high-quality live try-on experience – lest we forget, without the hassle of using a credit card. The VTO solution should instantly identify users’ faces, providing them with size-fitting glasses based on their automatically detected eye pupillary distance (PD). Furthermore, the chosen solution should offer the flexibility of seamlessly switching between products and testing different color variations. And finally, to add the cherry on top, the best solution will provide style and size suggestions powered by an AI recommendation engine, enabling companies to increase their profits through upselling and cross-selling strategies.

Easy Integration and Fully Customizable Solution

The quality is great and the experience is seamless, but what about the integration? The chosen solution provider should provide a quick and easy integration across all eCommerce platforms. 

 

Furthermore, the solution should be fully customizable depending on company needs and requirements. Having the ability to add various features, customize the UI/X of the solution is just as important as anything else. 

 

It is no question that companies spend ample resources creating their own brand identity and the chosen VTO solution should complement these efforts by enabling them to build their own tailor-made experience.

Content Management Platform

For further credibility and accurate results, the solution provider should give companies and retailers the freedom to use and surf their digitized catalogues on an online platform. Having access to a content management platform will allow companies to leverage an umbrella of data, and view their fully digitized 3D catalogue.

To top it all off, companies should have access to an easy-to-use portal that educates them on the most recent analytics and enables them to track the main KPIs they set to attain their ultimate sales goal and assess the benefits of the solution.

Conclusion

Despite the rising popularity of eyewear eCommerce, brick-and-mortar businesses retain their fundamental advantage: the ability for shoppers to try on their products before purchasing them. 

Augmented reality and virtual try-on are two new technologies that are set to change the retail and eCommerce industry. The work that is being done here is pretty transformational. Designhubz is using a customer-centric approach to fully enhance the users’ experience, allowing customers to immerse themselves in an innovative solution. At the end of the day, it’s not just about building a solution, it’s about fully transforming the way users and companies see the retail world by placing AR and VTO at the heart of it. 

Keeping up with the latest tech updates is one thing, but making sure they are well-exploited and addressing online shoppers’ concerns is one step closer to success.

Are you looking to upgrade your audience’s online shopping experience to a more engaging, interactive, and effective one? Schedule a demo now to learn more about how we can help you.

Learn More

204
Team@Designhubz
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