RETAIL INDUSTRY INSIGHTS FOR TODAY S RETAILERS AND CPGS THE IMPACT OF AUGMENTED REALITY ON RETAIL

RETAIL INDUSTRY INSIGHTS FOR TODAY’S RETAILERS AND CPGS

THE IMPACT OF AUGMENTED REALITY ON RETAIL

AUGMENTED REALITY IS CHANGING THE RETAIL LANDSCAPE Augmented reality has been taking a central role in the shopping experience in recent years and retailers are exploring new ways to utilize this tool. With investments in augmented reality expected to reach $105 billion by 2020, it is clear that augmented reality is a technology worth exploring for the modern retailer. Augmented reality is defined as an enhanced version of reality created by the use of technology to overlay digital information on an image of something being viewed by a device such as a smart phone. When a shopper uses augmented reality, it can help them picture a jacket or a pair of shoes in a variety of colors, for example. This technology can make shopping simpler by providing a convenient way to read product information and, ultimately, to make a purchase. Interactions surveyed over one thousand people from across the United States to take a closer look at the ways in which people like to use augmented reality as part of their shopping experience. In this report, we’ll look more closely at the ways in which augmented reality is shaping and enhancing people’s shopping experiences, and how people most prefer to engage with this new technology. The results from this survey indicate that shoppers like being given the opportunity to explore, play, and learn more about their prospective purchases using augmented reality. The survey shows how augmented reality is having an impact on retail today and how retailers can best utilize this tool to provide an innovative and fun shopping experience, while increasing traffic and sales.

METHODOLOGY AND DEMOGRAPHICS

In August 2016, Interactions conducted a survey with 1,062 shoppers across the United States to assess their use of augmented reality within their regular shopping habits. The demographics are represented by the following groups across gender, age, and region of the country.

23% NORTHEAST 24% MIDWEST 21% WEST

32% SOUTH

42% Male 1

58% Female

18-24:

14%

25-34:

26%

35-44:

23%

45-54:

19%

55-64:

18%

© 2016 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com

CHANGING TODAY’S SHOPPING EXPERIENCE SHOPPER DIAGNOSTIC

71% of people

would shop at a retailer more often if they offered augmented reality

61%

of shoppers prefer to shop at stores that offer augmented reality, over ones that don’t Over one third of all shoppers already use augmented reality while shopping

47% of those

shoppers like to use augmented reality both online and in-store © 2016 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com

40% would be

willing to pay more for a product if they could experience it through augmented reality

TIP!

Embed a purchase button at various places in the augmented reality experience, to further drive foot traffic and sales.

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PREFERENCES & POPULARITY

77%

of shoppers want to use augmented reality to see product differences such as a change in color or style

65% want to use

The most popular items to shop for with augmented reality:

60% furniture 55% clothing 39% grocery 35% shoes 25% make-up 25% jewelry 22% toys 3

augmented reality to learn about additional product information

55%

say augmented reality makes shopping fun

TIP!

Work with your team to make a store or product-specific game on your app to encourage people to play with and experience products. © 2016 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com

68% spend more

like that 45% augmented reality

time at a retailer if they can shop with augmented reality

helps them save time

like to use 41% augmented reality specifically

% 2 7 ased have purch

hey items that t nning weren’t pla of on because ty reali augmented

to find out about deals or special promotions

TIP! Make special discounts available only through your augmented reality experience

say that 61% augmented reality has changed where they shop

© 2016 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com

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About Us Interactions is the global leader in innovative retail solutions and experiential marketing for retailers and brands. Our workforce of more than 45,000 associates creates and produces nearly 3 million consumer events every year. Interactions’ integrated sales and marketing programs engage shoppers in-store and outdoor, provide insights into shopper behavior and customer service, and enable retailers and brands to make smarter business decisions and drive significant sales increases. Founded in 1988, the company has offices around the globe and operates in North America, Europe, South Africa, Australia and Asia. For more information, visit interactionsmarketing.com.

Contact Us: Interactions 9555 Chesapeake Drive, Suite 100 San Diego, CA 92123 858-581-8718 [email protected] www.interactionsmarketing.com/retailperceptions This report’s primary research was conducted in August 2016 by Interactions with a sample of 1,062 shoppers from across all geographies in the United States, with a sample of men and women ranging in age from 18 to 64. For more information on how to make this data work for you, visit www.interactionsmarketing.com. This document is the result of primary research performed by Interactions Consumer Experience Marketing, Inc. Interactions’ methodologies provide for objective fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Interactions and may not be reproduced, distributed, archived or transmitted in any means without prior written consent by Interactions.