The Future of Commerce Is Already Here

Editor’s note: This piece is part of our Columnist Network, which explores the tactical thoughts and actions from Adweek’s community of high-level experts. Today's column is part of a series with Snap on augmented reality. Below, Sally Huang, head of product for camera business, shares how AR has already started to change ecommerce and how to catch up to its rapid growth. While the holiday shopping season is in the rearview, the future of commerce has never been brighter. Consumers are embracing the expansion of digital experiences across their shopping journey—from new methods of product discovery to more personalized recommendations and faster delivery. Their willingness to experiment and engage with new experiences has created a massive shift in shopper expectations. This has left brands wondering: What new technologies can help grow my business today? Augmented reality, or AR, is the scalable, proven answer to this question, and cutting-edge AR commerce experiences aren’t years down the road—they’re here now. AR offers digital experiences overlaid on the physical world, allowing us to enhance and transform the real world. The days of having to be in a retail store to enjoy an immersive shopping experience are over. In just the last few years, the use of AR has significantly contributed to the evolution of ecommerce as we know it. And then the pandemic happened, catapulting commerce growth and, with it, the adoption of AR. To put that in perspective, in just the first three months of 2020, we saw an equivalent of 10 years of ecommerce growth. And by 2025, it’s expected that nearly 75% of the global population and almost all smartphone users will be frequent AR users. Amazon Goes to the Suburbs Although the pandemic helped expedite the AR adoption curve, future generations are the ones cementing demand for better digital shopping experiences. Research shows that one in four Gen Zers and millennials have already used AR when shopping online, citing their most common reasons as wanting to see what items look like on the consumer and to get a 360-degree view of a product. Gen Z views AR as not only a way to make shopping experiences more fun, but also as a valuable utility. There is no doubt the shopping behaviors of millennials and Gen Zers will continue to shape the future of commerce and AR as their combined global spending power has already reached $13.5 trillion. Reinventing the way you shop—with your camera Part of the appeal of AR is that it doesn’t rely on consumers purchasing a fancy new device or VR headset. It’s available right in shoppers’ hands—on their smartphone. Brands can easily create these real-time virtual experiences by incorporating 3D images of their products in their catalog. This can open the door for shoppers to explore products with 3D viewing, navigate a virtual storefront from the comfort of their own home and even turn their smartphone camera into a virtual mirror with the power of virtual try-on. Millennial and Gen Z audiences crave engaging, fun and convenient digital shopping experiences, and AR meets those needs. In a study with Deloitte, it was found that 94% of respondents who already use AR to shop said they would continue to use it. Putting shoppers first means brand loyalty With AR, the customer is at the center of every part of the shopping journey. This is what helps make the medium so impactful. For example, American Eagle partnered with Snapchat to create a virtual storefront, through which consumers were able to shop outfits digitally, tap on products to learn more, create a wish list and even make a purchase. The experience helped drive $2 million in incremental sales as well as 50 million engagements. For other brands like New Balance and MAC Cosmetics, virtual try-on for footwear and makeup help consumers visualize what they actually look like—without going into stores or relying on brand models. Not only does try-on tech create a more inclusive way for customers to experience products, but it empowers shoppers to become brand ambassadors when they snap a photo or video and share their shopping looks with friends. By creating more personal and convenient ways to shop, AR is meeting consumer needs while solving critical online-shopping challenges like ill-fitting purchases and high return rates. These “futuristic” AR commerce experiences aren’t a pipe dream—they’re happening now from brands and businesses of all sizes, and they’re delivering more impact and better results every day. According to recent research conducted by Snap and Publicis Media, two out of three respondents who said they would use branded AR for shopping also agreed that they were likely to make purchases following AR experiences. Stay ahead of the curve The ecommerce growth we have witnessed in the last few years is only the beginning. With the mobile-first generation’s spending power increasing by the day and the growing demand of AR shopping experiences, businesses looking to keep up need an AR strategy. In fact, if they don’t already have one, they are behind. If you’re looking for the best place to start, begin by investing in 3D assets for your product catalog. This allows consumers to start engaging with 3D viewing, but it also opens the door to explore other digital shopping experiences such as virtual storefronts, virtual try-on lenses, interactive product tutorials and much more. We’ve seen incredible advancements when it comes to AR creative development tools that allow brands to continue to push the envelope of what they can do. The creative opportunities to engage and activate shoppers through AR experiences are truly endless.