Company co-founder Ethan Nyholm said the app had been downloaded about 1500 times, and contributed to a up-tick in online sales of between 15 per cent and 35 per cent on the bags the app promoted.
“Augmented reality was a way to better communicate what sets our product appart, what are some of the unique selling points and unique selling features,” Mr Nyholm said.
“People are hesitant to engage with product but very happy to engage with technology, and thorugh the engagement with technology they can explore by themselves to create a higher level of engagement.
Pokemon Go players in Sydney. The app superimposed creatures onto the urban landscape. Credit:Mark Jesser
“If people interact with a product and have an experience, they’re more inclined to buy that product.”
Mr Nyholm said STM was also one of the first companies in the world to build an AR app that could be used at bricks and mortar stores. When held up to its physical products, STM’s app highlights their features and provides the type of detailed information about materials and construction that customers expect when they shop online.
Big business is also taking the potential of AR seriously. Cosmetics giant L’Oreal last week bought the start-up ModiFace, which builds apps that show customers how they would look wearing different types of makeup. Glasses retailers from Specsavers to Ray Bans are also using the technology.
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Amitabh Mall, head of the Boston Consulting Group’s Australian marketing and retail practice, said technology like AR could take off in categories like eyeglasses, where it reduced customer “pain points” and could save them a trip to a store.
“In other categories where it does not reduce customer friction, this would be more of a gimmick,” Mr Mall said.
PayPal’s 2018 mobile commerce Trends Report surveyed 404 online retailers and found that only 5 per cent had developed an “AR experience” for customers, but another 32 per cent said they were developing, or intended to develop an AR experience.
A survey of 1012 consumers found that 88 per cent worried about buying the right size when shopping for apparel online, and 82 worried about how products would look on them or in their home.
Forty-four per cent of shoppers said they would be more likely to buy a product if they could “try before they buy” using AR, but only 5 per cent had used such an app.
“Augmented reality gives retailers an interactive way to provide confidence prior to purchase,” said Elaine Herlihy, Paypal’s director of customer engagement.
She said the apps also produced “shareable” content customers could send to friends on social media to help them make a purchasing decision.
Reporter for The Age
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