How AR and Mobile Apps Are Disrupting the Retail Industry

2017 has been a tough year for retailers. News of store closures, bankruptcies, and predictions of the death of retail have been capturing the headlines. While the rise of ecommerce, Amazon’s increasing dominance, and changing consumer preferences certainly play a large role in the challenges retailers are facing today, what may really be underway is more of a disruption in retail as we know it than a “retail apocalypse”.

In fact, many companies are winning at the retail game. Apple stores are the most profitable in the world, generating $5,546 in sales per square foot. The once-troubled Best Buy has turned things around, and its stock price has risen more than 50 percent this year. Many ecommerce companies, such as Warby Parker, Everlane, Birchbox, and even Amazon, have opened brick-and-mortar stores.

While retail isn’t going away anytime soon, retailers will need to adapt if they want to continue to give shoppers a reason to drop in and open their wallets. That means finding new ways to connect with customers. One way to do that? Technology. And more specifically, augmented reality and custom mobile apps. Here’s a look at how retailers are using both to boost their shopping experiences—and their businesses.

Augmenting reality for shoppers

For years, there’s been a lot of buzz around virtual and augmented reality (AR), with the market predicted to reach $108 billion by 2021. Both Apple and Google are betting on it and have recently released AR developer kits for their devices. While the story of AR is still unfolding, several retailers are finding success thanks to this digital innovation.

The article “5 ways augmented reality is changing retail and manufacturing” explores three ways retailers are currently using AR to enhance their customers’ shopping experiences.

1. Next-level comparison shopping

Many shoppers already use their phones to compare prices and products when they’re in the store. Retailers can make the experience easier, faster, and more personalized with apps.

For example, an AR app developed by IBM enables customers to scan a shelf of cereal in a grocery store to see product information, rankings based on price and nutritional value, special offers, and related product suggestions. The app can also help guide shoppers with dietary restrictions to choices that are low in sugar or gluten free.

In the future, as the technology gets smarter, apps could suggest popular recipes based on that item and other ingredients you’d need to make the dish. As a result, the customer will have a richer shopping experience and the store could see a lift in sales.

2. Enhanced try-on experiences

Being able to see, touch, and try on products is a main driver of what brings shoppers to stores. Several retailers are using AR to make the experience easier and more engaging.

• L’Oreal’s Makeup Genius app turns your smartphone into a mirror so you can test out different shades of makeup, try new looks, and share them with your friends on social media.
• Furniture shopping can be a challenge even in person. Will that sofa fit? Is that chair the right color? With the Ikea Place app, you can take a picture of your room and see how any of the 2,000 products available will look.
• Japanese-based Uniqlo offers LCD mirrors that enable you to see how other colors of a shirt or jacket you’re trying on will look with a tap of the screen.
• Rebecca Minkoff streamed a fashion show online in AR and enabled customers to buy an outfit off the runway with just a click. Shoppers could also virtually try on clothes using an app called Zeekit.

Personalized offers

While personalization has been a hallmark of online shopping, retailers can leverage AR and predictive analytics to enhance in-store shopping.

Using customer data and machine learning algorithms, retailers can create offers personalized to an individual shopper based on past shopping behavior and patterns. For example, a woman who regularly buys a certain brand of toothpaste could get a special offer to buy a second tube at a discount.

Offering value beyond your website

Customers have a lot of options these days and can easily order anything they want from the comfort of home. To drive traffic to retail locations, companies need to be creative and listen to their customers.

For many brands, custom mobile apps are proving to be a great way to make that connection and get them off the couch and into the store.

The article “Custom mobile application development for retailers” looks at two brands at the forefront.

Starbucks: The company recently closed down its online store to focus on its retail locations and mobile app. The popular mobile app enables customers to place an order remotely, so they can avoid waiting in line. They can also pay using the app. Starbucks has added an AI assistant called My Starbucks Barista that enables customers to speak into the app or use the messaging interface to place orders. Making the ordering and payment process quicker and easier is a win-win for both customers and Starbucks.

Sephora: The cosmetics retailer has an Innovation Lab focused on leveraging technology to create more engaging customer experiences online, in store, and in mobile apps. If customers don’t want to physically try on makeup, they can use the AR-powered app to virtually test out different shades or products. Color IQ devices in the store scan a customer’s skin to help them find the right shades of lipstick, concealer, and foundation.
These are just a few ways mobile apps can help you connect with customers and boost your business.

To learn more about mobile app development and how to find the right developer for your project, check out these articles from Upwork’s Hiring Headquarters.

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