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Augmented reality (AR) has been around for some time now, and has evolved incredibly quickly. Starting out primarily in the games and entertainment industries, AR is now being used to enhance customer experiences and engagement in retail. AR mobile apps are now more than just fun things to mess around with. With the right strategy and product, AR can help brands increase customer engagement and bottom line. That said, AR still faces some challenges and hurdles to navigate! Let’s take a look at how AR works and what it brings to the retail industry.
What are AR Mobile Applications?
AR mobile apps are no strangers to our day-to-day lives in 2025. AR mobile applications come in all shapes and sizes, from gaming apps like Pokemon GO, computer headsets like Google Glass and head-up displays (HUDs) in cars – to name a few. In the context of retail, AR allows customers to engage with products and services in far more immersive and ‘real’ ways. For example, most AR retail apps allow shoppers to visualise products in their own space, try items virtually, or explore immersive in-store experiences.
Let’s say you’re in IKEA, their app (IKEA Place) allows you to digitally place products in a room, more specifically, you could see how a sofa fits into your living room. Alternatively, a fashion brand’s app might offer something different like providing virtual fitting rooms that eliminate the guesswork of online shopping. This technology is not just limited to online settings. In physical stores, augmented reality can guide customers with interactive maps or deliver personalised recommendations as they shop. If you’re looking to create your own AR mobile app, you might find our AR app guide pretty useful.
How Do AR Mobile Applications Enhance Customer Engagement?
You might already be starting to see how AR mobile apps can engage users through immersion alone. Let’s look at a few other ways.
Personalised shopping experiences
Most AR apps give you the benefit of customising your shopping experience to your exact needs. Whether it’s an app that suggests clothing based on your style or one that lets you try different furniture products and colours for your living room. These apps cut out all the middle work to create a slick and personalised shopping experience.
Interactive and Immersive Experiences
We’ve all had that shopping experience that begins to feel like a chore. Or at least, we know someone who doesn’t like shopping. With AR, not only does shopping become more accessible, but it becomes something everyone can enjoy. You can walk into a shop and point your phone at a product to instantly see reviews, demonstrations, or tips on how to use it. Some apps even offer mini-games or challenges, like scavenger hunts or rewards for exploring certain parts of the store – which could make even the most disinterested shopper engaged! If you’re shopping from home or work, some AR apps let you explore different styles, colours, or variations of a product before you commit. Want to try on a new shade of lipstick? See how it looks on your face in real time.
Curious about how that new sofa will look in your living room? Drop a virtual version into your space and check it out from every angle. AR makes the whole experience much more exciting and hands-on.
Confidence in What You’re Buying
One of the best things about AR is how it helps you make better decisions. Want to know if a pair of glasses will suit you? Try them on virtually. Not sure if that new table will fit in your dining room? See how it looks in your space before buying. It’s all about giving you the tools to shop without second-guessing yourself. This not only saves time but also effort and money that may have otherwise been wasted on the wrong products.
Blending Online and In-Store Shopping
AR is great at connecting online shopping with the in-store experience. You can explore products online, try them out virtually, and then head to the store if you want to see them in person. It makes the whole process smooth and flexible, so you can shop however you like. In short, AR helps take the stress out of shopping and puts you in control, making it easier to find exactly what you’re looking for – and to enjoy the process while you’re at it.
What About XR in Retail?
While AR is already making waves in retail, Extended Reality (XR) will likely take the customer experience even further. XR is an umbrella term that includes AR, Virtual Reality (VR), and Mixed Reality (MR). Today, XR is being used in retail in several different ways, and some cross over with AR. a few of the main ways brands are using XR include:
- Virtual Showrooms: These offer consumers a more engaging and memorable experience than traditional e-commerce grid views.
- Virtual Try-Ons: We mentioned before how being able to virtually ‘try on’ items and outfits can be particularly useful for enabling more informed purchases that reduce return rates.
- Interactive Ads: Simply allow consumers to engage with products in new and exciting ways.
- In-Store Experiences: A fun and much more unique and memorable shopping experience.
Plus, XR can increase sales conversions by over 50%, increase average order values by 30%, and reduce return rates by 20%.
What to Expect Next
AR in retail isn’t going anywhere. In fact, by 2030, the AR market is expected to boom, making it a £154 billion market. AR is set to become a standard part of shopping, much like online stores are today. As this tech becomes more accessible and affordable, more retailers – big and small – will likely look to incorporate it into their strategies. It’s the logical step forward. From enhancing in-store experiences to making online shopping feel more interactive, AR will play a key role in blending the physical and digital worlds in the next 5 to 10 years.
Take a look at our Augment Reality (AR) Projects Here!
Summary: Enhanced Customer Engagement Through AR Mobile Applications
AR mobile apps revolutionise retail by delivering immersive, personalised shopping experiences, such as virtual try-ons and the ability to visualise products in real-world settingsl
Apps like IKEA Place allow customers to see how furniture or fashion items will look in their homes or on themselves, increasing confidence in purchasing decisions
AR bridges the gap between online and in-store shopping, enabling customers to explore products virtually and seamlessly transition to physical stores as needed
The integration of AR with technologies like WebGL and Unity enhances interactivity, making shopping more engaging and accessible across various devices
By 2030, the AR market is expected to grow to £154 billion, as retailers adopt this technology to meet the rising demand for convenience, engagement, and modern shopping experiences
Is Amazon working on virtual reality?
Amazon has been working on VR hardware since 2017, and is expected to fight to become one of the world’s leading VR brands. Amazon XR is already widely used for commercial purposes, and we can expect further Amazon MR brands and AR brands to tether more towards entertainment use.
How does Amazon use augmented reality?
Amazon currently allows shoppers to liaise with AR brands to place digital products in the home. This helps consumers to assess if things like the colour or size of an item will work in a room. However, Amazon is expected to grow its Amazon VR and Amazon AR business models further in the near future.
Does Amazon have a Metaverse?
Amazon is reportedly getting ready to unleash its Amazon Meta World. In September 2022, it showcased its VR business in five different cities. We can therefore presume that Amazon will be readying the release of XR glasses, XR headsets or XR goggles within the next twelve months.
Is Amazon working on virtual reality?
Amazon has been working on VR hardware since 2017, and is expected to fight to become one of the world’s leading VR brands. Amazon XR is already widely used for commercial purposes, and we can expect further Amazon MR brands and AR brands to tether more towards entertainment use.
Does Amazon have a Metaverse?
Amazon is reportedly getting ready to unleash its Amazon Meta World. In September 2022, it showcased its VR business in five different cities. We can therefore presume that Amazon will be readying the release of XR glasses, XR headsets or XR goggles within the next twelve months.
Why brands should use augmented reality?
Brands should use augmented reality since it can hugely boost their customer engagement and retention. Those using AR are seeing increased custom and can also benefit from lower return rates. AR can also be used by brands to improve self-service as well as broaden marketing strategies.
How does augmented reality benefit retailers?
Augmented reality allows brands to create a unique and therefore memorable experience for clients which will keep them coming back. It can also improve on self-service elements of the shopping experience which means customers have a more enjoyable, smoother experience of your store and your brand.
What is augmented retail strategy?
Augmented retail strategy is the use of AR elements to improve aspects of the sales process for customers. It includes branding and marketing, creating an experience for customers which promotes the product or service and encourages them to purchase it through the aid of augmented reality.
What is AR and VR in retail?
Augmented reality is a way of overlaying digital elements onto real life, such as displaying a product’s information on a hologram screen or projecting an item onto an image of your real home. VR, or virtual reality, has been used by some companies to create entire virtual stores which customers can explore from their own homes.
What is Metaverse shopping?
Metaverse shopping involves shopping in a completely digital space, using an avatar. Through their avatar, a customer can engage with products in real time and make purchases in a company’s virtual shopfront. Within the Metaverse, customers are able to walk around a store, identify what products they’re interested in, interact with other shoppers, and ultimately make a purchase.
What is meta mall?
Meta mall is a virtual retail space within the metaverse, collecting companies within the digital confines of a storefront, similarly to a real-world location. Meta malls allow customers to use VR as an immersive experience, encouraging them to shop between stores while remaining in the comfort of their homes.
How are NFTs used in retail?
The rapid increase in NFT interest has led to unique innovations in the retail sector. High fashion brands and other innovators have already invested in NFT collections, providing an additional source of revenue alongside physical sales that perfectly fit into an XR retail model.
What are brands doing in the metaverse?
For many brands, the metaverse is the ideal solution to marketing physical and virtual products in an immersive world. Whether that involves using AR to change the colours of your wall or hair or viewing every inch of a product model in VR, the concept remains the same – a better customer experience from start to finish.
How do I sell items on metaverse?
Much like eCommerce, the process of selling items through the metaverse is a straightforward payment process with added features that evolve the customer experience. Once a purchase decision has been reached, the process is as simple as completing checkout for an order to be placed.
How will the metaverse change retail experiences?
The metaverse changes retail by combining the physical experience and thrill of real-world shopping with the convenience of digital purchases. As the best of both worlds, shopping in the metaverse helps customers feel connected with brands without ever needing to leave home.
What does the metaverse mean for retail?
The metaverse provides a truly digital solution for shoppers, completely erasing the requirement for travel and combatting the less-engaging faceless nature of online retail storefronts by combining the in-person experience with digital convenience.
Can I shop in the metaverse?
The metaverse is in development, making now a better time than ever to invest in this unique retail experience to gain engagement with early adopters. Once live, the metaverse will provide users with a wide range of shopping experiences.
What retailers are in the metaverse?
The metaverse is already an area of interest for many retailers, with a wide range of household brands buying up space within it to achieve their goal of an innovative customer experience. Adidas, Nike, Louis Vuitton and Gucci are some retailers already implementing XR solutions for their brands.
