Technology has witnessed a dramatic transformation in the past few decades. This transcended experience is led by the use of advanced and future-focused technologies.
Retail apps, once seen as a simple extension of physical stores, are now changed into a powerful tool for businesses to engage customers, drive more sales, and maintain a distinct edge. However, before the advent of AR in retail, retailers faced numerous challenges, like a lack of personalization, high return rates, no product visualization, and more.
Retail app development backed by the power of augmented reality has transformed the shopping experience into something more immersive. With try-before-you-buy, consumers can experience the product or service in its surroundings before the actual one. This lets them know how it can impact or solve a particular problem. The global market is around $6 billion and is expected to reach $ 61.3 bn dollar by 2031.
However, the development of AR-specific retail management software requires a distinctive process. The ones with experience in this niche can help build a highly modern retail application for your business. Hence, it is wise to work with a skilled mobile app development company with experience working with modern technologies.
This blog highlights the role of AR in retail, use cases, features, and more in retail app development.
How Augmented Reality in Retail Works?
Augmented reality is not a new concept in technology; some of us use it daily. Social media filters or popular games like Pokemon Go, Walking Dead, or Ingress are the leading examples. With the advancement in technology, the usage of AR is shifting into every industry. One of which is the retail industry. This makes it enticing to understand how AR in retail is helpful.
- The shopping experience is enhanced as this technology overlays digital information and visuals into the physical world.
- Customers can interact with the products in real time. This aids in bridging the gap between online and offline shopping.
How Augmented Reality in Retail Stores Works?
Understanding how AR works for retail stores is essential.
- Environment Scanning: AR app development enables smart devices to scan the physical environment with the help of cameras and sensors. Cameras capture the real-world environment, while sensors gather data and detect the device’s orientation and position.
- Data Processing: The Augmented reality-based retail management software processes the gathered data to identify objects, surfaces, and spatial relationships.
- 3D Modeling: Retailers use 3D models of products to allow easier customer interaction.
How is Virtual Reality Different From Augmented Reality in Retail?
Both are trending technologies that have completely transcended people’s perspectives on seeing things. But they are different in the way they are used. A tabular difference below will clarify all the major details, including:
| Aspect | Augmented Reality | Virtual Reality |
| User Experience | Enhances real-world experience | Completely replaces the real world with virtual |
| Hardware | Mobile phones or tablets with working cameras and sensors | Requires VR headsets. |
| Interaction With Environment | Both digital and real world elements interaction | Only virtual world interaction |
| Customer Engagement | Better customer engagement through improved shopping experiences | Virtual experiences create immersive experiences among customers. |
| User Comfort | Comfortable experience as users remain more aware of their local surroundings. | It can sometimes create discomfort or motion sickness for users. |
| Data Collection | Collect data on user interaction | Gather data on user behavior |
Use Cases of AR in Retail
Retail business owners can use augmented reality in diverse ways, depending on their requirements. Some might be looking to offer a virtual try-on to users, while others want to make their packaging process more interactive. Here are some use cases of augmented reality in retail business:
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AR-enabled try-on
One of the clear examples of using AR in retail is virtual try-ons. With AR-enabled applications, users can virtually check on products without physically visiting the store. Whether for clothes, accessories, or even jewelry, virtual try-on boosts customer engagement and confidence.
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AR Gamification
Augmented reality can be used to build gamified experiences, like product quizzes or digital rewards, to encourage repeat visits from users. This way, customers will explore more products and learn about the brand.
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AR Packaging
Augmented reality in retail offers customers a highly engaging shopping experience that will augment eCommerce and in-store sales. Customers can scan the visible QR code on their screen to get through the latest offers, discounts, or new product launches. For instance, AR for retail is handy as retailers can share product information or brand stories.
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Interactive User Manuals
Interactive manuals can simplify complex processes. They help users effortlessly understand how to use the product. For instance, if you are launching a product with a steep learning curve, it might be difficult for new users to understand. Here, interactive user manuals help customers understand how it works.
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Color Matching
Augmented reality offers a color-matching advantage for retail store owners and customers. Customers can precisely match the color they want, and retailers can provide accurate color to users, boosting their satisfaction level. The Dulux Visualizer app is a prominent example of this use case, allowing customers to easily match and choose the color of their walls.
Types of Augmented Reality Applications
Five main types of augmented reality applications help different retail businesses, depending on what they sell. You can choose one that best suits your offerings online. Here are the five different types of AR in retail:
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Marker-based AR
As the name states, this AR type relies on a visual marker (QR Code), which helps trigger the interactive experiences. A user can scan this fiducial marker to activate the visual effects with the help of their device. However, it only works on mobile devices, so if you prefer to use this in iOS or Android app development, shoppers need to install a specific application to make this work properly.
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Markerless AR
Unlike marker-based AR, this uses environmental cues or location-based data to place digital content without needing any fiducial markers to trigger interactive experiences. This is not limited to mobile devices. Instead, users can scan their physical environment with their devices to place the content on their floor, ceilings, or wherever they want to.
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Projection-based AR
This AR application type helps a business display digital content/information in a physical environment. Projection-based AR, as the name states, relies heavily on projectors to display the content in 3D. One can utilize this augmented reality application for store openings or pop-up events.
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Superimposition AR
It completely replaces the physical object with the digital one, allowing users to visualize how a particular thing will look after replacing the physical one. This is best suited for furniture, home decor, cosmetics, and other types of businesses. You can include superimposition-based AR in custom mobile application development to improve interactivity and user clarity.
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Location-based AR
This is one type of markerless AR. How? Location-based services rely on geographical data to offer digital images at specific locations. This type of AR is mainly used in building game-specific applications. One prominent example is the Pokemon Go game, which showcases hidden characters in different places using users’ location data.
Core Features of an AR-Based Retail Management Software
Features play a vital role in enhancing user experience, engagement, and conversions. The more business-specific these would be, the more users you will attract. In eCommerce app development, the AR-based features can change depending on particular needs. However, some core features that no retail business should ignore include:
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Product Visualization
This feature allows users to visualize products in their physical surroundings in 3D. These 3D models offer a life-like view to users, allowing them to explore a particular product from different angles.
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Store Navigation
In-store navigation is one of the interactive features of AR for retail business owners. In this feature, the usage of marker-based technology is visible, guiding users to different sections of the store without any confusion. Hence, these visual indicators make it easy for users to find products and promotions.
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Warehouse Optimization
Retailers must include an inventory management feature in their AR-enabled applications. This helps provide real-time information to business owners, which they can use to manage their stock levels. This ultimately leads to a more efficient picking, packing, and shipping process, further boosting warehouse efficiency by reducing errors.
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Camera Filters
Adding camera filters to retail app development is one of the most engaging features. This allows customers to test filters, like glasses or makeup, virtually to find out how a particular product will look on them before they actually purchase it. Hence, camera filters aid in improving customer engagement.
Key Benefits of Augmented Reality in Retail App Development?
Earlier, the products were to be seen only by visiting the physical store, but with AR becoming more prominent, this limitation is no longer bound to us. It’s a boon for both sellers and shoppers.
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Better Customer Engagement
With AR in retail, users can engage with the products without purchasing them. A digital 3D model of a product allows a user to understand whether a particular object suits the surroundings or not. This way, customers develop an indirect relationship with your brand, likely a memory.
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Personalized Shopping
Augmented reality in retail allows users personalized shopping advantages. This lets them virtually check on the products in their own physical environment, and if everything suits them, customers can purchase accordingly.
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Reduced Returns
One prominent advantage of using Augmented reality for retail stores is that there are fewer returns. Over 60% of customers reported that they like using AR to make better decisions while shopping. This lets them purchase the right products without having dual thoughts about whether they will suit their surroundings.
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Brand Differentiation
Your brand will stand out when you use advanced technologies like AR in retail application development. Retailers that use AR-specific features in Android or iOS app development attract tech-savvy users and create a memorable experience for them.
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Building Customer Loyalty
When you provide users with an engaging and impressive shopping experience, most will remain loyal to your brand. AR in retail can strengthen the connection between a brand and the user, improving conversion and sales ratios.
How to Implement Augmented Reality in Retail App Development?
After knowing the features, work, and benefits, one question that strikes in your mind is how to implement augmented reality in retail stores. The implementation process requires careful consideration of the essential factors, like:
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Define Project Needs
Start the implementation process by defining the specific needs of your project. This includes steps like:
- Identifying and determining which areas in your store would work best with AR-specific features.
- Understand the demographics of your customers to design an engaging AR experience. You can hire UI UX designers to complete this task further.
- Invest your time in setting realistic expectations for your project.
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Choose the Right AR Tools and Technologies
After defining your project’s needs, the next step is to choose the right tools and technologies to integrate AR in retail shopping.
- Select an AR development kit according to the platform on which you want to build your AR-first application.
- Indulge in the creation of high-quality 3D models of your products.
- Consider using cloud-based platforms to achieve scalability and easy accessibility.
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Design User Interface
Now, after selecting the tools and technologies, you must start designing the user interface of your AR-specific retail application. This includes:
- Design precise on-screen product controls for better product selection, interaction, and viewing options.
- The user interface design company you hire will utilize visual elements, like markers, icons, or arrows, to effectively guide users.
- Focus on making the design accessible to everyone, including people with disabilities.
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Develop AR Functionality
After completing the design process, the next step is to build AR functionality for your retail app development project. The things you must perform include:
- You can invest in building a product recognition feature in your retail application.
- Render 3D models for better product visualization in the physical environment.
- Include interactive features, like virtual try-ons or product customization, in your application to improve user engagement.
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Integrate eCommerce Features
Once the AR functionality is developed per your business needs, now is the time to integrate eCommerce features in your mobile application, including:
- Hire eCommerce developers to seamlessly link your product catalog to AR product visualizations.
- Integrate the Add to Cart feature and allow customers to add the products directly to their cart within the AR experience.
- Allowing users to save the products they like through a wishlist feature.
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Rigorous Testing
Once the development is complete, it is wise to check whether your AR-specific retail application performs as per the set standards or requires some work.
- The software testing services company will test the application on various devices to ensure it works smoothly.
- Gather feedback to find hidden usability issues and fix them to improve user experience.
- A team will test different lighting conditions, network speeds, and more to find and fix the issues.
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Deploy and Launch
After the AR-enabled retail app development project’s successful testing, you can deploy and launch it. For this, you can:
- Publish your specific application on platform-specific app stores.
- Track user interaction with your application and measure its success by identifying and fixing the issues.
Challenges in AR-Focused Retail App Development
Some limitations bound every development. This has not left the introduction of AR in retail apps. Here are some challenges that can impact the development process. These include:
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Device Compatibility
Augmented reality (AR) -focused retail applications require access to different hardware capabilities (sensors, cameras, and processors) and operating systems. This sometimes makes it challenging to work precisely on various devices.
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Realistic Rendering
You must understand that to deliver visually appealing, high-quality 3D models, specific knowledge of tools like Blender or SketchUp is required. Sometimes, when a project’s deadline is not met, rendering realistic applications is difficult for a business.
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Privacy Concerns
Security can be one of the major concerns by far, as augmented reality collects users’ data and works accordingly. This raises concerns among users about the privacy and security of AR-based applications. However, you can integrate blockchain technology to enhance user privacy and transparency. Hence, indulge in blockchain app development to mitigate this concern and level up the security bar.
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Higher Development Costs
Building an AR-first application for your specific niche requires the presence of need-based developers and designers with particular skills in 3D modeling or virtual environments.
Best Practices for Augmented Reality Shopping App Development
Every process has some challenges, and a wise approach is to look for the best practices to tackle those problems efficiently. This includes:
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Build User-Centric Design
Hire a UX design company to focus on remaining user-centric to reach and attract more users. The company will tend to perform all the measures that greatly aid this process.
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Optimize for Performance
Performance plays a vital role in any shopping application. You must optimize your application to meet the highest performance standards. It is wise to collaborate with an AI consulting company to get valuable insights and strategies, which help improve the performance of AR-specific features.
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Focus on Cybersecurity
You can perform data encryption methods and adhere to data privacy regulations, like GDPR, CCPA, and more, to ensure high-end security of your shopping application powered by AR technology.
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Consider Budget
AR development is cost-intensive, but if you plan your budget wisely and know what AR-specific features you want to include, you can complete the development within your budget.
How Much Does it Cost to Adopt AR in Retail Market?
The cost of developing an AR-specific shopping app varies according to diverse factors. This includes the type of application you are about to build, the technology it takes, and the service provider’s working experience. Types include:
- Simple AR Application: This includes basic AR features like 2D overlays, simple product visualization, QR code scanning, and more.
- Moderate AR Application: This includes 3D model integration, virtual product try-ons, integration with eCommerce platforms, and more.
- Advanced AR Application: This includes more advanced and future-focused features, like high-quality 3D models and animations, real-time product rendering, and opting for AI integration services for AI-first features.
The cost of building them would be different depending on different retailers’ requirements. However, the table below consists of the basic overview of the cost:
| Application Type | Approximate Cost |
| Simple AR Applications | $10,000 — $45,000+ |
| Moderate AR Applications | $45,000 — $1,50,000+ |
| Advanced AR Application | $1,50,000 — $5,00,000+ |
*Note: This is just an approximate AR-specific retail application development cost. You can contact an AR app development company to know more about the price.
Partner With SparxIT to Enable Expert-Led Augmented Reality in Retail Application Development
Augmented reality has been a disruptive change for retail business owners. However, making it work properly requires an expert team like SparxIT. With over a decade of experience in the industry, we are a prominent name in AR application development. Our team is well-versed in building top-tier retail applications powered by AR technology.
We utilize emerging technologies, like AI, IoT, Blockchain, and more, to ensure your AR-focused retail application remains valid for current-day and future needs. In our years of experience, we have completed various augmented reality projects and delivered results the way our clients envisioned. Indulge in making your retail app development project more future-centric by collaborating with us.
