Key Takeaways
- 1 AR try-on technology reduces return rates by 10-20% and increases online conversion by 15-25% in fashion retail
- 2 Virtual try-on capabilities have moved from novelty to mainstream customer expectation, especially among Gen Z consumers
- 3 Implementation requires investment in 3D modelling, AR SDKs, and device testing across multiple platforms
- 4 Success demands balancing entertainment value with commercial outcomes while ensuring inclusivity across diverse customer segments
Executive Summary
Augmented reality (AR) try-on technology has moved from novelty to mainstream, with global fashion consumers expecting immersive shopping experiences. By blending retail and gaming mechanics, AR enables customers to visualise products in real time, reducing return rates and increasing engagement. For CTOs, AR presents both an opportunity and a challenge: delivering seamless, high-performance solutions across markets while keeping costs sustainable.
AR in Fashion Retail
Virtual Try-On for Apparel
Capability: Customers can see clothing fit and drape in real time using smartphones.
Business Impact: Return rates reduced by 10–20% in early adopters.
Leadership Implication: High dependency on accurate 3D product data and mobile performance optimisation.
Footwear and Accessories
Capability: AR overlays for shoes, handbags, and eyewear.
Business Impact: Increases online conversion by 15–25%.
Leadership Implication: Requires integration with product catalogues and inventory systems.
Gamified Shopping
Capability: Interactive filters, digital avatars, and social sharing.
Business Impact: Enhances engagement, particularly among Gen Z and Gen Alpha.
Leadership Implication: CTOs must balance entertainment value with commercial outcomes.
Business Impact Assessment
- Revenue Growth: Higher conversion and reduced returns drive profitability.
- Technology Cost: Investment required in 3D modelling, AR SDKs, and device testing.
- Customer Engagement: Increased dwell time and repeat visits.
Executive Leadership Framework
- Technology: Partner with AR vendors while building internal 3D asset pipelines.
- Data: Capture AR usage insights to improve merchandising decisions.
- Governance: Ensure inclusivity (skin tones, body shapes) to avoid reputational risk.
Conclusion: From Experiment to Expectation
AR try-on is rapidly moving from experimental feature to core shopping expectation. CTOs must accelerate deployment, ensuring global scalability and inclusivity, while connecting AR experiences to measurable business outcomes in conversion, loyalty, and margin protection.
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