The global AR market is projected to reach $125 billion as early as 2025. As a matter of fact, the retail sector is the most significant contributor in this growth. This highlights the increasing adoption and acceptance of AR virtual try-on technology in the retail industry. The same impact is visible in the luxury watch industry.
Augmented Reality (AR) Virtual Try-On technology has revolutionized the way consumers make purchase decisions. This becomes particularly more relevant in the luxury watch industry. We all have seen the rise of the e-commerce Industry. In fact, there’s an increasing demand for personalized shopping experiences. You can check it for the Luxury Jewelry brands here.
AR virtual try-on has become a game-changer for watch buyers. This technology allows customers to visualize how a watch will look on their wrist before making a purchase. To understand more try this neutral link. To experience it you need a camera on your device. Thus, it is clear that a virtual tryon significantly influences decision-making.
In this blog, we will explore the 5 key advantages of leveraging AR virtual try-on technology in the luxury watch industry in 2023.
1. Customer Engagement
AR Virtual Try-on revolutionizes the way customers interact with luxury watches. Virtual try-on allows consumers to try out watches on their wrist from the comfort of their homes. This technology significantly enhances customer engagement. Statistics show that interactive experiences increase the likelihood of purchase. Today, 71% of consumers prefer retailers that offer AR over those that don't. The immersive nature of AR Virtual Try On also boosts customer satisfaction. Further, 61% of shoppers are more likely to make a purchase after trying an item in AR.
2. Conversion Rates
Augmented Reality Virtual Try On translates into tangible business results for luxury watch brands. Studies reveal that brands incorporating AR technology witness a conversion rate increase of up to 90%. By eliminating the uncertainty associated with online purchases, customers gain confidence in their buying decisions, leading to a higher conversion rate. Furthermore, AR Virtual Try On enables a seamless transition from online browsing to in-store purchases. A whopping 40% of consumers are more likely to visit a store if they have used AR to try products beforehand (Source: Retail Perceptions).
3. Product Returns
One of the biggest challenges for luxury watch brands is the high rate of product returns. AR Virtual Try On comes to your rescue to a reasonable extent. It provides customers with a realistic preview of how the watch will look on their wrist. This reduces the likelihood of disappointment upon receiving the product. This results in a decrease in return rates. Research shows that companies implementing AR technology witness a substantial 36% decline in product returns. This reduction in returns not only saves costs but also enhances overall customer satisfaction and brand loyalty
4. Brand Differentiation
The luxury watch market is extremely competitive. For a brand it is extremely important to stand out in the crowd. Augmented Reality Virtual Try On serves as a powerful tool for brand differentiation. Virtual try-on offers an innovative and interactive shopping experience. This helps luxury watch brands leave a lasting impression on potential customers.
According to a report by Harvard Business Review, brands that provide superior customer experiences outperform their competitors by 85% in sales growth. By embracing AR Virtual Try On, luxury watch brands can position themselves as tech-savvy and customer-centric. This helps gain a competitive edge in the market.
5. Data-driven Insights and Personalization
AR Virtual Try On generates valuable data. Today, luxury watch brands are leveraging these insights to enhance their marketing strategies. By analyzing user interactions and preferences, brands can gain deep insights into customer behavior. This enables smart personalized recommendations and targeted advertising campaigns. With 61% of consumers preferring personalized shopping experiences, AR Virtual Try On offers a unique opportunity to meet customer expectations. By tailoring product offerings and marketing efforts based on data-driven insights, luxury watch brands are driving customer loyalty, repeat purchases, and ultimately, revenue growth. Check out this 2 minute read article on how many luxury brands are also benefiting from VTO in their analytics journey.
Augmented Reality Virtual Try-On technology has become a powerful tool in the decision-making process for watch buyers. It is a great opportunity for brands to enhance visualization, increase engagement. With shifts in technology and the increasing adoption by brands and retailers, AR virtual try-on is expected to become an integral part of the watch-buying experience.
By providing customers with a personalized and immersive shopping experience, AR virtual try-on technology empowers watch buyers to make confident and informed decisions. This leads to increased sales and improved customer satisfaction.
Kavita has been adept at execution across start-ups since 2004. At KiKsAR Technologies, focusing on creating real life like shopping experiences for apparel and wearable accessories using AI, AR and 3D modeling