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Retail trends: brands bet on AR technology to improve product perception and enhance CX

Augmented Reality technology is rapidly evolving and becoming the new standard in retail. According to a recent report by SkyQuest Technology, the adoption of AR by retailers is on the rise, with nearly one-quarter of respondents saying they are using the technology in their business. The survey polled more than 1,000 executives at large retailers around the world. Let’s look through the key findings from the survey and find out why brands bet on AR technology.

Source: Global Augmented Reality Market Insights, SkyQuest Technology

The AR market is growing at a rapid pace. According to the report, the global AR market was valued at $25.27 billion in 2021, and it is expected to reach a value of $267.98 billion by 2028, at a CAGR of 40.12% over the forecast period.

The retail sector is gradually turning to AR technologies. 24% of the surveyed retail executives are already using AR in their business, while another 26% are considering adopting it.

AR is not just for big brands. 43% of small and medium-sized retailers said they are already using or considering AR.

Businesses leverage AR for different purposes. The most common use case for AR is product visualization, with 41% of respondents saying they are using or considering using AR for this purpose. Other popular use cases include customer engagement (34%), marketing and advertising (32%), and store operations (30%).

Retailers see a huge potential in Augmented Reality. According to the survey, retail executives believe that AR will have a positive impact on several key areas of their business, including sales (63%), customer satisfaction (62%), and product development (61%). In addition, 58% of respondents said they believe the rapidly expanding augmented reality market will help them to reduce costs and improve customer engagement.

Some retailers still find it difficult to implement Augmented Reality. The biggest challenges that retailers face when adopting AR include the need to invest in technology (77%) and to find the right talent (72%).

Here at Cappasity, we also believe that Augmented Reality has the power to transform retail and push the boundaries of the shopping experience. We’ve developed the first comprehensive solution that allows fashion brands to create AR holograms of items within as little as 20 minutes (compared to 3–5 days). With Cappasity, the AR creation process doesn’t require manual 3D modeling — all you need is a photo studio and the Easy 3D Scan software where all the content post-production takes place. This makes the solution more convenient and affordable since retailers don’t need to pay thousands of dollars for 3D artists’ services and wait days for the results.

Cappasity AR holograms let shoppers interact with items like they would in real life and offer them a complete view of products, which improves overall product perception. To make the customer journey more engaging, retailers can use AR holograms not only in online catalogs, but also in brick-and-mortar stores. Better customer engagement both online and in-store makes consumers choose your brand over that of your competitors, and attracts customers through a variety of channels, resulting in higher sales. Please watch the video to see how it works:

To implement AR technology in shopping, contact our team at

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