According to a latest research report titled “Virtual Reality and Augmented Reality in Retail Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market was valued at US$ 3147.58 million in 2020, and it is expected to grow at a CAGR of 24.8% during 2021–2028 to reach US$ 17864.86 million by 2028.
APAC Virtual Reality and Augmented Reality in Retail Market to Grow at Highest CAGR during Forecast Period
The fashion industry across the region is also investing on AR and VR technologies to offer advanced customer experiences. StyleDotMe is a fashion technology company introduced in 2015. It has created MirrAR, an augmented reality software for jewelers. The AR technology allows customers to try on jewelry on client brands' digital platforms without wearing it, as well as obtain rapid fashion advice from experts, bloggers, and influencers across the world. StyleDotMe's revolutionary AR technology works automatically on digitized copies of jewelry in real-time. Leading Indian jewelry brands such as Tanishq, Amrapali, PC Jewellers, and Kalyan Jewellers have integrated the same on their websites and applications to offer better shopping experiences to customers. Thus, the above-mentioned factors are contributing to the growth of the market in the region. The region has experienced a temporary shutdown of all retail business activities in the initial months of 2020. This has led retail businesses to make large investments on adopting technological advancements in their business model. For instance, with the COVID-19 pandemic causing a shift in consumer behavior and an increase in online adoption, Flipkart has been concentrating on improving customer experiences through several investments. To improve its e-commerce purchasing experience, Flipkart Group has acquired Scapic, an augmented reality (AR) business. Scapic is a cloud-based platform that allows clients in the e-commerce and marketing industries to create and publish Augmented Reality (AR) and 3D content. Thus, the growing investment by retail giants across the region on technological implementation has positively impacted the growth of the market across the region during the pandemic.
Key Findings of Study:
Brands use virtual and augmented reality technology to promote themselves and their products in virtual reality marketing. The technology generates a fictitious yet realistic setting. Depending on the device, virtual reality marketing might be visual or multi-sensory. A full virtual reality headset provides a fully immersive experience, whereas a virtual reality Instagram filter only overlays objects or photographs onto the camera view. Augmented reality (AR) marketing is what these filters are. AR is a type of virtual reality in which a virtual image is superimposed on the real environment.
The most prevalent sort of virtual reality marketing is augmented reality marketing. For many businesses, it is more practical and less expensive than developing a headset experience. Consumers will find augmented reality more accessible because it only requires a phone or desktop app. For example, with its Virtual Artist app, Sephora was one of the first to adopt augmented reality marketing. Virtual reality marketing is also a fun approach to get the word out about new products. Gucci's app now has an augmented reality element to advertise its new Ace footwear range. Users can aim the camera at their feet to view how various sneaker styles would look on them. They can see the shoes from a variety of angles, owing to the technology’s movement tracking abilities. Similarly, Instagram recently teamed up with Spark AR to launch a new feature that allows users to design their own AR filters. Words or images are superimposed on top of the actual image in the camera view by the filters.
This is being used by brands to make filters that display their logo or other branded image. For example, Coca-Cola Poland designed one that practically places its polar bear mascot in the room with the viewer. Thus, the high adoption of AR and VR technologies by brands for marketing purpose is expected to contribute to the growth of the market.