companies failing to keep up with consumer appetite

companies failing to keep up with consumer appetite

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According to research by Snapchat, consumers in the United Arab Emirates significantly outpace businesses when it comes to interest in using augmented reality experiences, showing how technology may have influenced purchasing decisions.

Around 85% of consumers in the Emirates want to use AR to interact with a product before buying it, and 70% said shopping was their main reason for using AR, the photo-sharing platform said. belonging to Snap in the report, which was carried out in cooperation with the Parisian research firm Ipsos.

Compared to businesses, consumer interest is vastly higher across the board in major categories, including navigation, product information, education and travel, he showed.

However, most companies that have used AR have reaped the benefits: more than three-quarters said their brand awareness improved after implementing AR, according to the report.

“Our digital world is built for discovery. Consumers are used to browsing messages, notifications and ads from multiple channels to quickly engage with brands. Having great content is no longer enough,” the report says.

“The challenge for brands? Break through the noise and establish their presence in this noisy environment.”

Companies are increasingly considering integrating AR into their product presentations, as it has the potential to provide a more accurate experience of their products, immersing potential buyers in their surroundings without needing to be physically present.

This is part of so-called experiential e-commerce, in which products are promoted using augmented and mixed realities, along with associated hardware such as headsets and wireless controllers.

The biggest companies are increasingly involved in the sector. Amazon, the world’s largest online marketplace, already offers a service called AR View, which allows customers to view products in 3D and even position certain products like furniture in their homes before purchasing them.

Meta Platforms, the company formerly known as Facebook, is promoting the metaverse, while iPhone maker Apple is reportedly gearing up to launch its own AR glasses.

In the United Arab Emirates, Magnati, the payments business unit of First Abu Dhabi Bank, in June unveiled a new metaverse platform, Magnati-MetaV, which aims to provide consumers with access to the growing segment of experiential e-commerce and increase retailer revenue.

The global AR market was valued at $25.33 billion in 2021 and is expected to grow at a compound annual rate of over 40% from 2022 to 2030, according to Grand View Research.

AR in shopping, in particular, has gained traction: while 88% of brands agree that AR expands the range of clothes and shoes that customers can “try on easily”, 72% of consumers said augmented reality makes the shopping experience “easier”.

“Augmented reality helps consumers feel confident about their purchases. It allows them to view, share, and gather feedback before making decisions,” the report says.

For businesses, AR has the potential to drive revenue: Interacting with products that have AR experiences leads to a 94% higher purchase conversion rate, while 84% of brands that use AR said it helped drive sales, acquire new customers, and improve performance metrics. It said.

The effects of technology also extend beyond sales. About three-quarters of brands that use AR said it builds customer loyalty, while 96% of consumers say they would be “interested” in using any post-purchase AR experience, according to the report.

The study also found that AR can become a factor in promoting sustainability in retail, as being able to try products virtually will most likely reduce product returns, compared to an experience without AR that exposes consumers at the risk of “guessing” their choices. .

“That means more accurate choices and fewer returns, which helps brands save money and reduce their environmental impact,” he said.

Updated: November 03, 2022, 08:04

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