On Tuesday, Kmart Australia launched a new feature on its website that allows customers to see items from its latest furniture and homewares collection in their own home using augmented reality (AR). The feature can be accessed via a special website called K Labs. Customers simply need to click on a product and scan the area in their home where they’d like the item to ‘appear’ with their smartphone. They can view the product from all angles and even virtually open the drawers of dressers t
s to check the fit. The site also features a new chatbot called K Bot in case they have any questions.
Kmart is just the latest Australian retailer to embrace AR technology. After Apple launched the ARKit in 2017, it became much easier for retailers to incorporate AR features into mobile apps, and Ikea and Redbubble were among the first to do so.
In the years since, Barbeques Galore has built an app to help customers visualise over 100 popular products in their own backyard, and The Iconic has launched a virtual try-on feature for some of its sneaker styles.
But while there are plenty of examples of AR in retail once you start looking, it seems to be perpetually stuck on the list of tech trends ‘to watch’ – why hasn’t AR become ubiquitous by now?
One possible reason, according to e-commerce strategist Nathan Bush, is that uptake is being driven more by business considerations than consumer demand.
A nice surprise, but still a novelty
“There’s no doubt that the barrier to entry for AI has come down. Mobile is now the dominant device, browsing speeds are capable and AR capability is often built into web browsers, social platforms and search engines,” the founder of retail consultancy 12High, told Inside Retail.
“Just like the eventual rise of the QR code, there’s no need to download dedicated apps to experience it. Augmented reality is now built into the tools and apps we already use! But it isn’t yet a customer expectation. It’s a nice surprise and often, still a novelty.”
But this could be changing, thanks to the global pandemic. While it used to be fairly easy and commonplace for customers to research a product in-store and purchase online at home, social distancing restrictions have made this practice (called showrooming) a lot harder, or even impossible.
If AR tools are simple and accurate enough for customers to understand what an item will look, feel and fit like in real life, they could serve as an alternative to showrooming.
Kmart created its new AR tool in just three weeks, after seeing increased demand for home improvement inspiration from consumers spending more time at home.
“The immersive AR and AI experience was designed to bring joy and inspiration to our customers’ lives, and with extra help from our AI chatbot personality – KBot assist – we have been able to make shopping easier for customers by sprinkling delight across the customer journey,” Melissa Wong, Kmart’s head of digital, said in a statement about the launch.
Bush agreed that AR is a “nice way to elevate the online experience” at a time when it has “never been so difficult to touch, see and feel product in person”.
Platforms keen to partner with brands
At the same time, he said investment in AR technology from major platforms could make it even easier for brands to offer these features to customers.
“I think any AR acceleration will have to leverage existing platforms and social networks. Almost every platform – including TikTok, Instagram, Snap, Etsy, Pinterest and Google – have invested in AR within the last 12 months. They now all have AR features built in as part of their platform and are keen to partner with brands to get them to large audiences,” Bush said.
Some recent examples include makeup brands launching a virtual lipstick try-on through Pinterest, Burberry helping customers visualise products with AR in Google search results and Loreal letting customers try on makeup looks using AR filters in Snap.
As the former group digital manager at Super Retail Group, Bush said retailers should “absolutely” be experimenting with AR, but should stick to proven AR use cases, such as virtual try-on and product fit, and leverage existing platforms, rather than developing their own solution.
“Alternatively, you can custom build a new AR experience to showcase your USP in an eye-catching and innovative way. At best, this will be mind blowing for customers and at worse, a nice PR exercise. But you’ve got to bring something new to the game,” he said.
At the end of the day, however, he said AR is still just a “nice to have”.