The Impact of Augmented Reality on the Furniture Industry

The furniture industry is undergoing an unprecedented digital transformation, driven by the growing demand for more immersive and personalized shopping experiences. Augmented reality (AR) is emerging as a key technology to meet these demands. According to eMarketer, the number of AR users in the United States will surpass 100 million monthly by 2025. This statistic underscores the importance of adopting AR for furniture businesses that want to stay competitive and relevant in the market. In this article we report on the study conducted by Chaos Group Cylindo on the impact of AR in the furniture industry.

Augmented reality offers significant benefits at every stage of the customer journey, from initial discovery to the purchase decision. Here’s a detailed overview of how AR can be effectively integrated at each stage of the buyer’s journey:

In the awareness stage, the primary goal is to attract the attention of potential customers. Today, about 90% of consumers start their purchase journey by searching online. To capture these customers’ interest, it is crucial to offer an engaging browsing experience that includes 360° views, product configurators, lifestyle imagery, and detailed product information.

AR can further amplify this experience by allowing customers to visualize how a piece of furniture would look in their real space directly from their device. Email and social media campaigns using AR can generate greater curiosity and engagement. Even out-of-home (OOH) advertising can become more engaging with QR codes that launch AR experiences, making these campaigns more measurable and effective.

Once you have captured customers’ attention, the next step is to keep them engaged. During this stage, consumers usually compare and analyze different product options. For high-priced items like furniture, quality and product specifications become crucial.

AR can help bridge the gap between the online and offline experience. For example, QR codes can be used in stores to allow customers to visualize the furniture in their homes. For tech-savvy customers who do extensive research online, AR offers the ability to view the product in 3D and test it virtually in their environment. This not only enhances customers’ confidence in their choices but also brings them closer to the final purchase decision.

In the decision stage, AR can play a crucial role in reducing cart abandonment. According to Dynamic Yield, the cart abandonment rate in the furniture industry is close to 80%. Adding QR codes on the checkout page or in abandoned cart emails allows customers to visualize the product in their space again, reducing uncertainties and facilitating the purchase decision.

After the purchase, AR can continue to engage customers through order confirmation emails that include AR experiences, maintaining high satisfaction levels and reducing the risk of returns.

For furniture businesses looking to adopt AR, it’s important to choose between app-based AR solutions and web-native AR. App-based solutions require customers to download an application, which can be a significant barrier since furniture is not frequently purchased, and customers may not want to download an app they will rarely use.

Web-native AR, on the other hand, allows customers to use the technology directly from their smartphone browser without downloading anything. This approach offers wider adoption, lower development costs, and greater ease of use, making it a preferable choice for many businesses.

The adoption of AR in the furniture industry is also driven by demographic changes. Generation Z, a digitally native cohort, is entering the housing market and expects advanced shopping experiences. According to Retail Brew, 71.5% of Zoomers plan to buy their first home in the next six years, and 37.2% will do so in the next three years. By 2025, more than a third of Gen Z is expected to shop using AR.

Moreover, 63% of furniture industry leaders believe that AR can increase sales, while 46% see this technology as enhancing the customer experience. With 52% of companies in the sector planning to adopt AR in the next 12 months, it is clear that AR is no longer a future trend but a current necessity to remain competitive.

Adopting augmented reality represents a revolution for the furniture industry, offering new opportunities to engage customers and enhance the shopping experience. Businesses looking to fully leverage this technology must carefully consider how to integrate AR throughout the customer journey and choose the technological solution that best suits their needs. With the growing adoption of this technology, AR is rapidly becoming an indispensable tool for success in the modern furniture market.

All data are from a study conducted by Chaos Group Cylindo.