RETAIL INDUSTRY INSIGHTS FOR TODAY’S RETAILERS AND CPGS

THE IMPACT OF AUGMENTED REALITY ON RETAIL

© 2016 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com1

AUGMENTED REALITY IS CHANGING THE RETAIL LANDSCAPEAugmented 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 DEMOGRAPHICSIn 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.

58% Female

42% Male

18-24:

14%25-34:

26%35-44:

23%45-54:

19%55-64:

18%

23% NORTHEAST

21% WEST

24% MIDWEST

32% SOUTH

© 2016 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com 2

CHANGING TODAY’S SHOPPING EXPERIENCE SHOPPER DIAGNOSTIC

47% of those shoppers like to use

augmented reality both online and in-store

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

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.

Over one third of all shoppers already use augmented

reality while shopping

3

PREFERENCES & POPULARITY

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

77% of shoppers want to use augmented

reality to see product differences such as a

change in color or style

The most popular items to shop for with augmented reality:

60% furniture 55% clothing 39% grocery35% shoes

25% make-up 25% jewelry

22% toys

65% want to use augmented reality to

learn about additional product information

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.

55% say

augmented reality makes shopping fun

© 2016 Interactions Consumer Experience Marketing, Inc. | www.interactionsmarketing.com 4

68% spend more

time at a retailer if they can shop with augmented reality

45% like that augmented reality helps them save time

41% like to use augmented reality specifically

to find out about deals or special promotions

TIP! Make special discounts

available only through your augmented reality experience

61% say that augmented reality

has changed where they shop

72% have purchased

items that they

weren’t planning

on because of

augmented reality

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.

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.

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.

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Interactions9555 Chesapeake Drive, Suite 100 San Diego, CA 92123858-581-8718hello@interactionsmarketing.comwww.interactionsmarketing.com/retailperceptions