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Will Augmented Reality Shopping Replace Physical Stores

Published on 03.05.2025 by Tracey Chizoba Fletcher

Augmented reality has transformed shopping, allowing buyers of fashion items to try items without stepping into a physical store. This has made shopping a more engaging, interactive, and immersive experience. According to a Shopify report, brands that leverage augmented reality and virtual reality experienced 94% more conversion on their products.

How Augmented Reality Impacts Shopping

You can imagine entering a store and noticing a sign leading to a custom outfit. Or you can picture yourself in your home trying out how different furniture will look in your living room without lifting your fingers. While this may seem like a far-fetched narrative, it's the magic that augmented reality offers.

AR blends the physical world with the digital world. This is different from virtual reality (VR), which enables users to immerse themselves fully in a digital space. On the other hand, AR offers a digital element of the real world. It allows users to see and interact with different elements using AR glasses and smartphones. It is similar to adding digital elements to enhance what you do and see.

You can use AR to bring videos, images, and 3D models to life. For instance, you can point to furniture to see how it looks in your room or try out a new pair of shoes without entering a physical store. You can also use AR to get real-time information, such as showing a live street view or providing product details as you browse through the shop. This technology transforms your everyday experience, making it fun and interactive.

How AR Has Transformed Shopping

There are different ways in which AR has transformed the shopping experience. The technology can enable:

Virtual Try-On

We have already mentioned how AR  and VR are the future of social media buying as they can enable you to try products from the comfort of your home. A Deloitte study showed that customers end up shopping more when using AR. This can be attributed to the fact that virtual try-ons can reduce the uncertainty of online shopping, resulting in fewer returns and higher customer satisfaction rates.

You can try a wide range of items on your phone or tablet, from outfits to makeup and accessories. We already have examples of brands like Nike, Sephora, and L’Oreal leveraging this technology. For instance, Nike has an app that allows customers to see how their shoes look on their feet. Similarly, Sephora enables users to experiment with different makeup items. Users of the lipstick can see precisely how a certain lipstick shade will look before they buy it.

Better Brand Storytelling 

AR can help brands tell their stories as they delve into their values, history, and product details. Apple and Pepsi are good examples of brands that have done that well. These two brands allow their customers to look closer at their products, diving into the details and features.

For instance, Pepsi added captivating AR animations to the London Bus Shelter, such as tigers and UFOs. This level of storytelling enabled the brand to connect emotionally with its customers because it didn't only tell a story but also provided an experience that increased customer loyalty.

Immersive Product Demonstrations

While product demonstrations have excited consumers for some time, AR has taken the experience to a new level. As noted earlier, it allows furniture shoppers to see how a couch will look in their sitting room or whether a lipstick will complement their skin tone. All this happens even before the customer can buy the product.

A good example of a brand that leverages AR is IKEA’s Palace. Users can add a real, true-to-scale 3D model of the furniture in their living room, ensuring a better customer experience. Such product differentiation improves conversion, as customers are convinced that the product is right for their living room.

Future Outlook of AR shopping

It is clear that AR has transferred and will continue transforming people’s shopping experiences. Several developments have led to a more immersive shopping experience, which will impact retail.

An Eastern Peak report indicates that the retail AR market is expected to grow tremendously to reach $61.3 billion in 2023 while growing at a CAGR of 41.4%. The opposite growth rate indicates the rising importance of AR as a tool for improving customer satisfaction and engagement. The technology provides a level of interactivity that a digital shopping method cannot offer.

Integration into Everyday Shopping

With the maturity of AR technology, it will be easily integrated into our daily shopping experience. AR will be used more for live shopping events, allowing customers to interact with the seller in real-time, ask any questions they have in mind, try out the product, and even buy it.

AR will also enable retailers to offer a more immersive in-store experience. Through the adoption of AR displays and smart mirrors, customers can try out new clothes virtually, study product information, and navigate through the store. This integration level offers shoppers a more enjoyable and interactive shopping experience, reducing the gap between physical and online stores.

Higher Level of Evolution and Integration

AR in retail will be more than just using gadgets in the future. It will offer a more interactive and cohesive shopping experience. More people will have higher AR access levels through innovations such as WebAR, where users can access AR through their web browsers and without special apps. This will result in a higher adoption of AR. The technology will begin integrating into different aspects, such as marketing, advertising, product customization, and customer service.

Final Thoughts

AR has transformed online shopping, as prospective customers can better engage with the brand. Features like personalized recommendations, virtual tours, and product demonstrations allow customers to expect an even better shopping experience. It will, therefore, improve the experience of brands using social media for e-commerce.

With the technology advancing, it will provide users with a seamless experience. With the continued advancement of AR technology, it will become more seamless, providing greater satisfaction and convenience. That means customers can expect more personalized, interactive, and engaging shopping using AR technology.