Rewriting the rules of engagement with AR

Technological advancements in the retail sector are driving a significant transformation in how consumers interact with and purchase products. At the heart of this change lies Augmented Reality (AR), which introduces new dimensions to the shopping experience and ways of interacting with brands. This technology goes beyond simply visualizing products, establishing itself as an essential tool for customer engagement through its use in interactive gaming campaigns and product pre-launch strategies.

The penetration of AR in the retail sector is a trend that’s accelerating rapidly. According to Research and Markets, starting from a base of $2 billion in 2021, the market value is projected to grow to $61.3 billion by 2031. This increase is quantified through a Compound Annual Growth Rate (CAGR) of 41.4% for the period from 2022 to 2031.

This annual growth rate of 41.4% is among the highest expansion rates for emerging technologies in retail, highlighting how AR is quickly becoming a key element for companies looking to innovate in how they present products and engage with customers. The CAGR is an indicator that shows the yearly average percentage growth of an investment over a specified time period, assuming that the profit is reinvested at the end of each year. In this context, the figure underscores a growing interest and significant investments in AR as a tool to enhance the shopping experience, both online and offline.

The introduction of AR profoundly transforms the shopping experience, allowing consumers to interact with products in immersive and detailed ways. This technology facilitates more informed purchasing decisions and reduces the risk of returns. According to Adweek, integrating AR can increase consumers’ willingness to spend more on a product not activated in augmented reality.

The willingness to pay a premium, which can reach up to 40%, stems from the increased confidence that consumers have in their purchasing decisions thanks to the improved experience offered by AR. Therefore, AR not only provides significant added value for the customer but also plays a fundamental role in building and strengthening consumer trust in the brand and its products.

AR finds application not only in the virtual try-on of products – such as the Ray Ban brand that allows you to virtually apply the product on your face – but emerges as a strategic tool for customer engagement. This digital tool is used in interactive gaming applications and product pre-launch presentations, creating unique experiences that increase interest and engagement with brands.

The AR experiences offered by companies like Dolce & Gabbana and Mouton Cadet illustrate the effectiveness of this technology in creating meaningful connections between consumers and products, expanding the possibilities of interaction with the brand.

AR is also rapidly establishing itself in the food & beverage sector, offering digital experiences that transform the way consumers discover and interact with food and beverages. These digital experiences in food & beverage range from displaying nutritional information and pairing suggestions in augmented reality to creating immersive experiences that allow users to explore the origins of a product or participate virtually in guided tastings. AR technology thus offers new opportunities for food and beverage brands to engage consumers innovatively, improving the shopping experience and providing added value through education and entertainment.

In this context of digital and virtual innovation where AR is rewriting the rules of engagement, the case study of the Capezzana winery stands out, illuminating the potential of virtual experiences in the food & beverage sector. During the pandemic period, this prestigious Italian winery introduced a virtual experience to train its global sales force, later transforming it into a versatile tool for brand presentations, guided tours, and one-to-one virtual tastings.

This experience, although not directly including AR experiences but exclusively VR, shares the goal of enriching the consumer experience through digital innovation. The adoption of custom-made 3D spaces, immersive 360° aerial images, and virtual tours with digital twins demonstrates how virtual experiences can amplify customer engagement in the food & beverage sector, effectively complementing AR-based strategies and underlining the importance of digitization in redefining the interaction between brands and consumers.

In the fashion industry, AR is revolutionizing the digital experience by offering consumers the ability to virtually try on clothes and accessories. This innovation not only improves the online shopping experience but also allows fashion brands to present their collections in a dynamic and interactive way.

Digital fashion experiences through AR allow consumers to see how clothes fit their body and personal style, reducing uncertainty and increasing confidence in online shopping. Additionally, AR can enrich in-store experiences through virtual mirrors and product configurators, offering a seamless shopping experience between online and offline.

1. Dolce & Gabbana in AlUla: Innovation in Collection Presentation

Dolce & Gabbana harnessed AR technology to enhance guest experiences during the presentation of its Alta Moda, Alta Sartoria, and Alta Gioielleria collections in AlUla. This initiative, undertaken in collaboration with LucidDreams, merged the historical essence of the location with technological innovations. By incorporating NFC technology within goodie bags, attendees accessed two unique AR experiences: one named “Sun,” showcasing traditional Islamic lamps, and the other “Night,” featuring planets, constellations, and shooting stars. This approach not only enriched the presentation of the collections but also provided an unprecedented level of interaction and engagement, showcasing AR’s potential in the luxury fashion industry.

2. Mouton Cadet and “90e millésime” Ar Experience

Mouton Cadet introduced an augmented reality-equipped wine bottle to celebrate the history and production process of its renowned organic wine on its anniversary. This initiative gave wine enthusiasts the opportunity to interactively explore the production stages from vineyard to bottle through an AR experience. The launch of this special bottle not only commemorates a significant moment in Mouton Cadet’s history but also exemplifies how AR technology can be used to deepen product knowledge and engage consumers in a profound and memorable brand experience.

The growing adoption of AR in retail marks a fundamental change in marketing and retail sales, offering personalized and immersive shopping experiences. This technology represents a competitive advantage for brands seeking to differentiate themselves in the market, with promising future prospects offering unlimited opportunities for innovation and customer engagement. As AR continues to evolve, it is expected that more and more companies will integrate it into their strategies, further transforming the shopping experience and brand interaction.

Such initiatives exemplify how both AR and virtual experiences are integral to redefining customer engagement across industries. Tenuta di Capezzana’s successful integration of virtual technologies alongside AR strategies showcases the broad spectrum of digital tools available to brands seeking to enhance their customer interaction and market presence.