UK retail market could get £1bn boost from augmented and virtual reality

By

Barbara Santamaria

Published
Jan 17, 2017

A new research report says that visualisation tools could add more than £1bn to the UK retail market and help customers make better purchasing decisions.

UK shoppers spent an estimated £60bn online last year, but some purchases can feel overwhelming if shoppers can’t visualise what they will look like in the homes or on themselves.

According to a report from DigitalBridge, there is an increasing “Imagination Gap” impacting purchasing decisions, which is costing businesses billions of pounds.

The research found that in the last 12 months, a third of consumers delayed or decided against buying items when they couldn’t visualise how they would look like in real life.

The ‘Imagination Gap’ is becoming a major commercial challenge for several businesses, particularly in the home interior market, where customers are often afraid of making a mistake when it comes to big items such as furniture, wallpapers and flooring choices.

Other markets such as fashion could also benefit from upgraded online offerings, using technology to give consumers the option to virtually try on items before buying them.

The majority of consumers revealed they would use a visualisation tool if it was offered, and more than 55% believe it would make them more likely to make a purchase.

A variety of technologies are now available for retailers to create online or in-store visualisation experiences, including virtual, augmented and mixed reality platforms.

There are a number of fashion brands adopting cutting-edge technology to increase their profits, such as Topshop, which launched a VR experience with Inition for LFW FW14 allowing customers to virtually see the front and back of the clothing.

Converse launched last year a Sampler mobile app, which gave people the ability to virtually ‘try-on’ a Converse product, while innovative retailers Rebecca Minkoff, Dior and Balenciaga have unveiled their own VR headsets.

But embracing technology not only leads to a better shopping experience. With online retail sales in the UK forecasted to continue growing this year, DigitalBridge says its increasingly vital for retailers to provide these services if they are to remain competitive.