Analysis of augmented reality business models for fashion retail outlets

Abstract

Augmented Reality is the system that brings virtual objects together in a spatial arrangement to mimic real world view. While virtual reality replaces real world, augmented reality supplements. This is the main difference between the two. This gap is however gradually decreasing now. Augmented reality allows us to glimpse at alternate versions of ourselves. Snapchat was one of the apps which first popularized AR application on self-grooming. They used filters which could transform us to look like animals to aliens. A lot of development in AR is happening in the areas of education and gaming. The fashion and retail industries are also picking up this new technology. Since fashion and beauty is all about how we see ourselves, they are fast pacing to utilize AR in providing experiences like trying on a wearable virtually before its purchase. Faced with competition from online shopping, the brick and mortar stores now adopt virtual trial room (Uniqlo’s Magic Mirror) and launch fashion weeks based completely on AR (Topshop unique show at London Fashion Week FW14). According to a study conducted by Alert Technologies in 2013, brick-and-mortar retailers that get shoppers into their dressing rooms will convert 67% of them to buyers [1] Through this study, we try to see the possibility of enhancing store experience using augmented reality applications. The most commonly seen application is the use of AR for in store trials. Since fit cannot be accessed by just labels, wearables are the biggest challenge for a shopper. Hence, we have chosen the fashion industry to do this study. AR being relatively the new technology getting implemented in town, we have taken a case study approach to draw conclusions. By looking at several stores which have tried to implement AR with the support of a technology provider, we draw parallels as to how a fashion retailer can improve his customer shopping experience.