How augmented reality strategies can drive growth in fashion and beauty

By 2025, virtual and augmented reality is expected to become an $80 billion market, according to technology research group Goldman Sachs. The blending of the physical and the virtual, by making use of augmented reality technology, brings with it increasing opportunities for fashion: accelerating or shaping new buying paths; enhance brand discoverability; link event and trade strategies; And take advantage of the emerging new creator economy.

Held at the Polo Bar in New York under the Chatham House Rule, the event was designed to inform market leaders of the scale and nature of the AR opportunity, backed by data and Insights from Snap Inc.before inviting attendees to share what they have learned in incorporating augmented reality into their work, and to discuss both challenges they have overcome and those they expect in the future with their peers.

The conversation was hosted in partnership with Snap Inc. Moderated by BoF’s Rahul Malik, the conversation was attended by a roster of C group CEOs from the likes of Amazon Fashion, Diane Von Furstenberg, Fendi, Givenchy, Tom Ford and LVMH, among others.

Inventing the way to buy

From the AR experience and the use of LiDar to accurately estimate the size of a user’s shoe or filters as a frictionless barrier to entry, the new technology is emerging as a powerful tool in improving customer experience. With more than 110 million people in the United States alone set to use augmented reality at least once per month by 2023, its potential is growing. Snap ‘lenses’ are used by more than 250 million Snapchat users every day.

“I think Fendi has [succeeded in] Use it to highlight the brand with more awareness and seduction while invigorating the try. Many of these brands have done a really great job of figuring out when to use a very creative lens versus a simpler one, let’s play and try the products out,” was some of the opening comments from one of the guests.

“Depending on the point of purchase of that product in relation to the fact of how you scroll up around the website or even purchase – I think there are definitely different models and use cases to take advantage of, bringing the world of the brand to the consumer versus having someone actually play with the integrated product ‘, they continued.

In fact, 86 percent of U.S. brands using augmented reality say it helps drive sales, acquire new customers, and drive performance metrics, as found in Snap Inc.’s “Augmentative Transformations” report. , in partnership with the market research group Ipsos.

Augmented reality is also a cost-effective way to encourage consumers to engage with products. Some companies make as little as 0.01 US cents per trial of their products. For example, by integrating catalog-supported shopping lenses via Snap Inc. American Eagle has enabled users to actively participate in and purchase products. The result – Lenses generated over 11 million impressions, with the brand above average in terms of reach and engagement.

This is not just a benefit to the consumers you are trying to introduce to the brand. It’s also something that continues to excite your customers.

“Our customer advisors were empowered to share this experience with their clients and use it as a means of product discovery and excitement,” said one attendee.

The conversation shifted to a focus on uniting the augmented reality experience with transformation and building customer awareness. A Snap Inc. representative said: “Ultimately, this is what drives the excitement around shopping. You now have the opportunity to try out product launches, bags, sneakers, jewelry and watches – it’s a convenient factor.”

However, “How does one overcome this stress of using a product that is sophisticated and therefore still developing?” asked one of the participants.

Often times, new things can scare people. But for us, it’s more about looking at where consumerism is headed, what resonates with it and then being able to come back to that with something that makes sense,” a Snap Inc. representative shared with the group.

“I think it has to happen frequently and basically consumers will expect it from you. It can’t be something you do as a one-time idea,” said another guest.

Merging physical and digital events

Shopify research indicates that 66 percent of end consumers are interested in using augmented reality to aid when making purchasing decisions, and by 2025, nearly 75 percent of the world’s population – and almost all smartphone users – will be a frequent augmented reality user.

Saïd Business School reports how sensory marketing can be pivotal in penetrating consumers who are increasingly apathetic about online advertising – a study by Magma Global found that 84 percent of smartphone users skip ads on the go, particularly among younger demographics.

As augmented reality glasses go mainstream — Snap’s 3 glasses use two cameras to create 3D photos and videos — consumers will soon be equipped with devices to help seamlessly integrate physical and digital spaces throughout the day.

From the consumer experience [standpoint] And cultural significance as well, I’d be curious about how one really presents that kind of authenticity in this context,” said an attendee.

Vogue magazine X Snapchat: Redefining the Body showcased designs from seven fashion brands — Balenciaga, Dior, Gucci, Kenneth Ize, Richard Quinn, Stella McCartney and Versace — and used custom Snapchat lenses to further enhance the experience through virtual experiences as an immersive world with archival, contemporary and exclusive pieces. .

New things can scare people. But it’s more about looking at what direction consumerism is headed, and what resonates.

Find out how to use it from a full funnel perspective – [with the] Streamline every shoe and eyewear brand and partner where you have 3D assets – we’re always in the shopping experience with Snap for those products that are most realistic and shoppable, and may not impact your buying decision process either. But beyond that, they have taken the approach from a brand and experiential perspective,” added one guest.

Benefiting from the Creator’s New Economy

Snap Inc. was created. A marketplace for creators, providing opportunities for more than 250,000 creators, developers, and partners to build millions of AR experiences and connect them with brands and agencies looking to enhance the sales experience and search for AR talent.

“We have already noticed that new technology is creating friction with consumers. As a leader in AR, our ambitions are ahead of today’s consumer niche,” a Snap Inc representative said. “With glasses, we have now made them available only to creators to benefit from a creative experience. We firmly believe in the power of augmented reality – it’s [just] It requires patience and time before it becomes mainstream and is more scalable.”

Another example is the Landmarker, a unique lens experience that tracks the visual features of a specific physical location, or landmark, in various global locations. Through this lens, you can create a 3D experience connected to architecture.

“There is a really strong point about how Snapchat can help conditioning users around certain behaviors that can then be adopted, unfamiliar to Snapchat,” said one attendee.

“Thinking about how the video game industry works because for millennials and younger millennials, it’s the same way we all watch TV, and that goes for millennials and older video games. It’s not a nerd anymore — everyone plays video games, This trained a lot of children sure [user interfaces]Some video game references.

Disclaimer: Snap Inc. executives have chosen. Exempting themselves from the Chatham House rule for this article.

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