Download Sample, Jewellery and Cosmetics Industry Shaping the Future of Augmented Reality
AR in retail boosts the shopping experience by letting customers see products in their own space, try on virtually, and access info. Increases sales and customer confidence. Augmented reality (AR) in retail is expected to boost due to the rising demand for jewellery. Using augmented reality (AR), customers can virtually try on jewellery before buying, seeing how different styles look on them in real time. AR also provides interactive information on materials and craftsmanship, enriching the shopping experience. As per the data of the World Gold Council, the global gold jewellery consumption in the first quarter of 2024 was 479 tons and amounted to US$32 billion which is considered a 7% growth compared 2023 first quarter.
Also, the demand for augmented reality (AR) in retail is forecasted to rise with the rising cosmetic market. AR technology revolutionizes the beauty industry by enabling virtual makeup try-ons for customers. This enhances engagement, reduces returns, and offers personalized recommendations based on skin tones and preferences, transforming the cosmetic market. Also, as per the data of the Indian Brand Equity Foundation, the demand for cosmetics market is expected to reach US$ 450 billion by 2025 where as per the data The United States is expected to be the major contributor to the market as on average, 6 to 12 cosmetic products are used by people on a daily basis. Thus, due to the rising demand for jewellery and cosmetic industry, the demand for augmented reality (AR) in retail is expected to boom.
Also, the demand for augmented reality (AR) in retail is forecasted to rise with the rising cosmetic market. AR technology revolutionizes the beauty industry by enabling virtual makeup try-ons for customers. This enhances engagement, reduces returns, and offers personalized recommendations based on skin tones and preferences, transforming the cosmetic market. Also, as per the data of the Indian Brand Equity Foundation, the demand for cosmetics market is expected to reach US$ 450 billion by 2025 where as per the data The United States is expected to be the major contributor to the market as on average, 6 to 12 cosmetic products are used by people on a daily basis. Thus, due to the rising demand for jewellery and cosmetic industry, the demand for augmented reality (AR) in retail is expected to boom.
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Augmented Reality Mirrors Transforming the Shopping Experience
The most recent leading segment for augmented reality (AR) in the retail market is AR mirrors which are used by various retailers to enhance the customer experience. AR mirrors are recent devices, that have been superimposed with digital content in the real environment to provide virtual images projected onto the user's reflection. Mirrors thus facilitate extension and depth in the shopping experience as they enable customers to "try on" clothes, accessories, or makeup without physically changing outfits or applying products. The benefits of AR mirrors in retail are saving time, cutting down the use of a fitting room, and providing personalized recommendations based on the user's preferences and past purchases. More retailers adopting the AR mirror technology means increased overall growth of this trend that is helping augmented reality enhance its market within retail, engage it with customers, and develop satisfaction among patrons. This change favors innovative tech-savvy consumers who, in turn, nudge traditional retailers to become digitally innovative in changing the shopping environment so as to be more active and immersive.
Recent Trends in the Augmented Reality (AR) in Retail Industry
- Use AR for virtual try-ons, letting customers preview clothing and accessories before buying.
- Location-based AR to provide promotions and information based on customers
- Integration of IoT, enabling smart mirrors to suggest styles and complementary items for customers.
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The Impact of Privacy Concerns and Costs on Augmented Reality in Retail
A major limitation factor for the growth of the AR market in retail is the privacy concerns about the personal data of users. Many applications involving AR programs require very sensitive information like location data and camera feeds that set off warning bells for users concerned with privacy. Thus, the application of AR technologies might be avoided by potential users because of fearing data misplacement or misuse and followed by poor protection. It will affect the scope and efficacy of the adopted AR marketing strategy and even slow down the whole process of adoption of AR technology by retail users. The overcoming of privacy barriers can be done by building trust and by having transparent data practices. Additionally, high development costs constitute a growth barrier for AR in retail, particularly for smaller retailers. Some high-rated software needs to be installed which could be quite costly which is crucial for developing the system. For this reason, many of the smaller players may decide not to integrate AR completely thus limiting the overall impact and innovation within the retail sector.
New Product Launch Leads the Augmented Reality in Retail Market
In March 2023, Snap Inc. unveiled AR Enterprise Services (ARES), a new enterprise solution that enabled businesses to integrate Snap’s Augmented Reality (AR) into their owned and operated channels with ease and at scale. Through this offering, consumers enjoyed immersive and personalized experiences with their favorite brands, with a suite of advanced tools designed to increase confidence in their purchases. ARES' inaugural offering was for retail, and among the first group of customers were Goodr, Princess Polly, and Gobi Cashmere. Each of these companies had been using various products from Fit Finder to AR Try-On, which were features that made up its new Shopping Suite. In May 2024, ThirdEye, a leader in Augmented Reality & Artificial Intelligence (AR/AI) solutions, announced the beta release of a fully decentralized augmented reality social media network for consumers. This announcement came after successful deployments of ThirdEye's AR/AI products to Healthcare/Hospitals, eCommerce, Telecoms & Government/Military markets. This free decentralized platform allowed users to have control over their own user data and not owned by a central entity. Users were also able to place virtual AR objects in the real world, upload AR data, create friend groups, have AR calls with virtual annotations among friends, and a digital marketplace to buy/sell virtual goods/NFTs. There was also an app store for users to add and download third-party apps.
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Rising Number of Retail Industry Expected to Boost AR Market Globally
The North American market is expected to boost due to the rising number of retail establishments. In North America, The United States holds a maximum number of retail establishments and as per the data of the National Retail Federation the United States has already surpassed the value of US$ 4 trillion and is considered the largest industry and largest private-sector employer in the country and currently employ 16.4 million people and account for 6.4 percent of gross domestic product. Thus, due to the huge retail market, the United States can be considered a lucrative market. Similarly, the Asia Pacific region is also considered lucrative due to the rising number of retail stores. China in the Asia Pacific is considered the leader due to its huge number of retail establishments. As per the data of The State Council of the People's Republic Of China, the retail sale of consumer goods in China's retail market experienced a growth of 4.1 percent, with urban areas rising by 4 percent and rural regions increasing by 4.8 percent. Furthermore, India can also be considered as a lucrative market. As per the data of Invest Indi, a retail market is expected to reach $1.1 trillion by 2027 and $2 trillion by 2032. As per the data India is considered as the 4th largest retail market globally and India secured first rank in 2023 in the Global Retail Development Index. Also, a total of 10% of the contribution is done by the retail sector to the gross domestic product which makes India a lucrative market.
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The report provides a detailed overview of Augmented Reality (AR) in retail market insights in regions including North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa. The country-specific assessment for Augmented Reality (AR) in the retail market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the Augmented Reality (AR) in the retail market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of Augmented Reality (AR) in the retail market. Some key countries and region included in the Augmented Reality (AR) retail market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Belgium, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Turkey, Egypt, Morocco, Israel, Kenya, Rest of MEA |
Augmented Reality (AR) in Retail Market Research Report Covers In-depth Analysis on:
- Augmented reality (AR) in retail market detailed segments and segment-wise market breakdown
- Augmented reality (AR) in retail market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in augmented reality (AR) in retail industry)
- Current, historical, and forthcoming 10 years market valuation in terms of augmented reality (AR) in retail market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Augmented reality (AR) in retail market demand analysis
- Augmented reality (AR) in retail market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in augmented reality (AR) in the retail market
- Regulatory landscape by key regions and key countries
- Augmented reality (AR) in retail market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on augmented reality (AR) in the retail market forecast by countries
- Mergers and acquisitions in augmented reality (AR) in the retail market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the major challenges in adopting AR in retail?
Challenges in adopting AR in retail include high implementation costs, the need for advanced technology infrastructure, limited consumer adoption, privacy concerns, and the requirement for consistent content updates and device compatibility.
What is the future outlook of AR in retail?
The future of AR in retail is promising, with the potential for widespread adoption across various sectors. Advancements in AR technology, such as improved hardware and software, will lead to more seamless and immersive shopping experiences.
How does AR in retail improve marketing strategies?
AR in retail enhances marketing strategies by offering innovative ways to engage customers, create memorable brand experiences, and drive targeted campaigns with interactive advertisements and personalized content that resonates with consumers.
