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Why retail is betting on virtual try-on for growth

Virtual try-on technologies are having a moment in retail this year. Interest with our clients is off-the-charts and adoption is growing everywhere.

It all started with augmented reality mirrors and apps reshaping the way beauty consumers discover and try on products in the past five years. Now, fashion and accessories brands are finally subscribing to virtual try-on in a variety of ways with the hope of driving engagement, increasing sales and fighting back returns.  

Some of the most recent examples include Nike’s try-on shoe app launched this past May. It measures the shape, size and volume of feet in order to recommend to people the best size to buy in the sneakers they’re interested in. According to the brand, the accuracy is within two millimeters and the whole process takes less than a minute.

Gucci followed suit a month later with a try-on that enables users of its app to see the Ace Sneakers on their feet in real-time. Shoppers can look at the shoes from different angles, and take pics to share on social media. This pilot is powered by one of Current Global’s core technology partners, Wannaby – a Belarus-based startup that specializes in “augmented commerce”.

In the eyewear category, Ace & Tate launched a feature on its website where users can see what they look like in its sunglasses on screen. Michael Kors has also done this via Facebook. 

And in hard luxury, an experiential pop-up from Richemont in New York, called Arcadium, features a virtual try-on experience by Jaeger-LeCoultre that allows shoppers to try styles by placing a ‘marker’ bracelet on their wrist. 

So why is so much of this happening now? Three reasons:

1- Growing consumer expectations:  Virtual try-on was born in the cosmetics space – cutting its teeth with brands like L’Oréal through to Sephora. It gained ground as shoppers got used to the idea of being able to see their faces with all manner of filters on thanks to the realism on social apps including Snapchat and Instagram. What was once a tech-generated value that consumers took a while to understand, is now perceived as a right that is extending to footwear and eyewear. 

E-commerce is evolving to serve a time-stretched and more demanding shopper that is used to having everything they want at their fingertips. Included in that is the ability to see what something will look like specifically for them, before they hit purchase. It’s utilitarian. 

2- The tech has evolved: Behind this trend is the fact the technology has caught up to the expectation. It’s now smarter, more realistic and affordable. Five years ago, the artificial intelligence and augmented reality that was needed to provide realistic mapping to the human face or body, just wasn’t there. Many good teams tried and failed – mostly because market demand wasn’t enough to fund their growth. 

3- Reducing returns: The value of returned goods will rise from $350 billion in 2017 to $550 billion by 2020 in the US, according to forecasts from Happy Returns. A contributing factor to this worrisome growth is customers opting to shop from home instead of in-store. During our work sourcing solution partners for various retailers, we’ve observed virtual try-on solutions consistently delivering positive results – from a 20% increase in basket-size for Sunglass Hut to 120% increase in engagement in a brand app. The upside for brands lies primarily in driving conversions while reducing return rates since the more likely a product is right, the more likely the individual will both buy it and keep it. 

The human body, and the ability for virtual try-on of full clothing, has been developed in chapters. The challenge is to develop accurate visualization and mapping. We have dozens of tech partners with algorithms from the US to Eastern Europe to China that have accurately learned the face, flat feet (high-heels try-on is still in the works), and now are focused on the variations of consumers hands and ears. 

As accessory and footwear brands race to catch up on AR, it’s safe to say the next vertical to jump on board is sure to be jewelry. Tech companies are racing to develop realistic capabilities in that sector to establish themselves as category owners.

What about ready-to-wear? The technology is quite impressive and is already here, with two startups leading the way on mobile and in-store. But the high cost of the tech at the present moment has prevented widespread adoption. As the space moves fast with growing adoption of AR in consumer shopping behavior globally, we expect virtual try-on to be a staple in the corporate innovation toolbox for all retailers keeping up with the digital age. 

How are you thinking about virtual try-on? The Current Global is a transformation consultancy driving growth within fashion, luxury and retail. Our mission is to solve challenges and facilitate change. We are thinkers and builders delivering innovative solutions and experiences. Get in touch to learn more. 

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Sunglass Hut sees 21% conversion increase with AI-enabled site personalisation

Sunglass Hut's My Frame Finder tool from Sentient Aware
Sunglass Hut’s My Frame Finder tool from Sentient Aware

Sunglass Hut is working with artificial intelligence firm, Sentient Technologies, to provide on-the-fly search personalisation for consumers.

Doing so has resulted in 21% higher conversions from shoppers exposed to the personalised experience compared to those just using standard search filtering methods over the past nine months, according to the team. Average order values are also 8% higher.

Using Sentient’s Aware platform, the initiative delivers an individualised shopping experience for every customer when they come to the site called “My Frame Finder”. This AI can then understand shopper intent by analysing hundreds of different vectors of an image the user is interacting with.

The aim of doing so, according to a case study released by the Sentient Technologies team, was to find a way to translate the customer service Sunglass Hut offers in store – where sales associates act as personal stylists able to help customers find the looks they’re after – into the digital space.

Shannon Rose, senior director of e-commerce for parent company, Luxottica Brands, said: “We wanted to find a solution that made shopping online as personal and delightful? as shopping in one of our stores. The tools we had at our disposal for our e-commerce store couldn’t achieve that and sometimes they left our customers feeling lost or unsatisfied. Sentient Aware was quick to integrate, started delivering immediate results and offered us the ability to expand across different customer entry points.”

The case study explains: “What makes Aware so unique is that it uses deep learning to build a model of a retailer’s catalogue using only its images, allowing the AI to understand quickly the relationship between products in a catalogue, much like a trained store associate would.”

Sunglass Hut is now also using Sentient Aware to power its product detail page recommendations and to include a Shop Similar Styles feature alongside.

Up next is applying the tool to the mobile experience. “Given Aware’s success on desktop, ?we’re excited to move to the next stage of deployment,” said Rose. “Mobile is one of our biggest sources of customer traffic and one of the hardest platforms on which to achieve a high conversion rate.”