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The recent release of Meta鈥檚 Quest 3 and the impending release of Apple鈥檚 Vision Pro mark major steps toward bringing VR, AR, and mixed reality to the masses. A relatively small population will buy these headsets, largely due to the high price point. But developers will continue experimenting, bringing those innovations to more common, everyday devices, such as smartphones. 4.

Lego is running an augmented reality-enabled treasure hunt to encourage customers to sign up for its newly revamped loyalty program, Lego Insiders. Hudson鈥檚 Bay Company refreshed its loyalty program by adding in-app quests that earn members bonuses when completed. And Under Armour鈥檚 new loyalty program allows customers to earn points by completing challenges through the retailer鈥檚 MapMyRun app.

And Snap is using AR to boost commerce adoption on its platform. 4. Influencer marketing is alive and well. Fifty-seven percent of US adults say they have a favorable opinion toward social media ads with influencers, creators, or celebrities, per data from the Out of Home Advertising Association of America and Morning Consult.

It already rolled out AR and VR technology in-store for the home category, allowing customers to visualize how furniture would look at home before buying. In June, Walmart also announced plans to acquire AR optical tech company Memomi, which it has used to provide contactless eye measurements in store.

By building out product description pages to incorporate images, video, or AR tools, retailers can ensure that consumers get the most accurate depiction of a product, minimizing the need for returns. Retailers should also prioritize customer reviews that include photos and video to give shoppers real-world examples of how a product may look on their body or in their space.

The model can accept text and image inputs and spit out generative text with 鈥渉uman-level performance,鈥� OpenAI says, per Ars Technica. The startup also claims that the model passed a simulated bar exam, scoring around the top 10% of test takers, compared with GPT-3.5, which scored in the bottom 10%.

Meta鈥檚 AI-powered Advantage+ Shopping Campaign tool is under fire from advertisers who say that it inflates their costs by as much as 10x, per Ars Technica. The AI software automates the ad-buying process by setting up ads and spending companies鈥� ad budgets with little human intervention. Yet customers say it devours daily ad budgets within hours and delivers few to no revenues in return.

AR, VR, and mixed reality await Apple鈥檚 entry. Meta鈥檚 dominance of the VR headset market has eroded, according to the International Data Corporation (IDC), as devices from ByteDance-owned Pico rise in prominence. The company is now walking back its big metaverse pivot.

But new offerings like augmented reality and 鈥渢ry before you buy鈥� are removing friction around digital buying in these categories. How should retailers prepare for the next wave of ecommerce? Essential goods are becoming a major part of ecommerce, putting a new emphasis on value and speed.

Game developers have been early adopters of VR and augmented reality, and major game platforms have partnered with brands in the virtual worlds of Roblox, Fortnite, and Minecraft. We predict new mixed reality devices from Apple, Meta, and Sony will drive more VR interest among game developers. And while economic conditions may slow ad innovation in the metaverse, it won鈥檛 be stopped.

And it's retail AR tools because it's kind of along the similar lines and they were really impressive. But obviously the attention around AR has died down with GenAI, which of course has been a huge topic of conversation here. And Snap has had to sunset a lot of its off-platform AR activities as it's working to recover its ad business.

We've seen things like augmented reality, technology trends. The technology can be there, but it takes a while for the humans to catch up in their behavior. Marcus Johnson:. Blake is going to take us a step further. He's got the medium case, so he's arguing that there will be one or two significant use cases that will emerge within the world of AI that will latch onto. Blake.

To keep those shoppers coming back, retailers should invest in features like seamless payment, augmented reality, real-time inventory updates, and loyalty apps. Health, personal care, and beauty is outperforming all other categories. Consumers have continued to invest in beauty and wellness in the wake of pandemic-related restrictions.

Creating augmented reality virtual pop-up shops on Snapchat have been successful鈥攖o the tune of 鈥渁 couple million dollars鈥� for each one. Each shop has a certain theme and only around 20 products at a time. 鈥淚t shows us that there is real commercial value in 鈥� this digital innovation space.鈥�. Why it matters: Snapchat use by Gen Z grew by 5.1% this year to reach 43.7 million.

More powerful mobile processors and network developments such as 5G are making mobile shopping faster and more secure than ever, while features including one-click checkout and augmented reality are removing frictions for people shopping on their mobile devices. Mobile payments are becoming easier.

Brands can now sponsor their own AR effects and filters, which will foster user engagement in advertising. Microsoft used this resource to push its brand with a nostalgia factor, while Daft Punk tried it out as a fun way to push fan engagement. These ads are a little silly, but a viral filter could go a long way with user interest. Who cares? Brands willing to take a creative risk. Player: Microsoft.

TCL is showcasing its NXTPAPER 2-in-1 laptop featuring an innovative paper-like color display, as well as its RayNeo X2 AR glasses. Our take: Smartphone makers can take risks and showcase unusual designs and innovation at Mobile World Congress, which could help expansion across non-North American countries or regions with strict bans.

VR- and AR-enabled in-store technology will also give consumers new ways to test drive products prior to purchase. Better CX at the shelf will drive more conversions鈥攁nd minimize returns. Digital shoppers expect depth of product information and customer insights before making a purchase, and a failure to provide it at the physical shelf adds unnecessary friction.

They鈥檒l simplify mobile checkout through AR-based solutions and in-demand personalization services that surface the most relevant payment options for a given buyer. They鈥檒l also focus on the experience in browsers鈥攚here much of mcommerce occurs鈥攂y developing solutions like Marqeta鈥檚 latest tokenization tool, which lets retailers send customers a virtual card to use online in just a few clicks.

Our forecasting team says that there are over 90 million Americans, nine zero million Americans, who use AR, 70 million use VR and 36 million have a VR headset. IDC was saying the worldwide AR headset market is planned to grow to 6 million by 2027. Apple had reportedly wanted to push 3 million in year one. Now, analysts say 200,000 is more likely.

Do you think that augmented reality will have a similar unlock with being able to visualize products? Sky Canaves:. It's a little bit hit or miss. I think Walmart acquired a virtual AR try-on firm a couple of years ago and it hasn't done very much with the technology, apart from being able to visualize clothing on different models.

More than a quarter of the US population currently uses augmented reality in some capacity according to our forecast, and a lot of that is taking place in stores. How can stores tailor these experiential and experimental tech opportunities to build a more robust customer profile? Arielle Feger:. I have a couple of thoughts on that.

What percentage of US adults have used and like using augmented reality (AR) shopping tools? A) 7%. B) 17%. C) 27%. D) 37%. Only 17% have used and like using AR shopping tools, while two-thirds (66%) are unaware of, haven鈥檛 used, or aren鈥檛 interested in them, according to a January 2025 蘑菇AV and CivicScience study. February 10, 2025.

That could include click-and-collect options, mobile apps that enable customers to scan and go, and AR and VR technology. Reduce friction points for better shopping experiences. Remove out-of-stock products from retail sites, enable one-click checkout for return customers, offer more options for delivery and click and collect, and make returns easier with prepaid envelopes or free in-store returns.