Sales Strategy

From Browsing to Buying: The Impact of AR on Fine Jewelry Retail December 05, 2024 (0 comments)

Poznań, Poland--Augmented reality (AR) is revolutionizing the fine jewelry and watches industry, allowing customers to "try on" products virtually using just a smartphone. A blog post by Netguru states that retailers like Mister Spex, Chopard via Farfetch, and IWC are leveraging AR to provide a personalized shopping experience, addressing challenges such as declining revenues and slow digital adoption.

[Image via istockphoto.com]

The report notes that currently, online sales make up only 13% of the market, but this figure is projected to reach 21% by 2025. Virtual try-ons are no longer a luxury but a necessity for brands to attract digital-first customers while maintaining the exclusivity of their products.

7 Key Benefits of Virtual Try-Ons for Retailers

1. Higher Conversion Rates
   Products with AR/3D content achieve 94% higher conversion rates than those without, providing customers with a clear visual of how items look when worn.
2. Increased Online Sales
   AR solutions make shopping convenient, encourage purchases, and eliminate the need for physical store visits.
3. Consumer Adoption
   Over 51% of shoppers are ready to use AR for assessing products, with adoption expected to grow as younger generations dominate the market.
4. New Market Access
   Virtual try-ons reach customers in remote areas, making luxury products accessible while attracting younger, digital-savvy audiences.
5. Fewer Returns
   Accurate product visualization reduces dissatisfaction and return rates, improving retailer efficiency.
6. Affordable Technology
   AR and machine learning are now more accessible, making it easier for retailers to integrate these solutions seamlessly.
7. Competitive Edge
   Leading brands like Rolex and Chopard are incorporating AR, pushing competitors to adopt similar strategies or risk losing market share.

Addressing Challenges in Luxury Retail

The report adds that the fine jewelry and watches sector must address revenue declines and rising demand for digital solutions. Virtual try-ons alone aren't enough—retailers must also refine their omnichannel strategies to blend online and offline experiences seamlessly.

Investments in virtual assistants and personalized customer service can enhance the shopping journey. Partnerships with influencers or platforms like Snapchat can boost social proof and attract younger demographics. Effective visual merchandising and focused omnichannel approaches are critical for maintaining customer engagement.

Learn more in this article by Netguru.