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The global virtual fitting room (VFR) market size was valued at USD 2.44 billion in 2019 and is projected to reach USD 10.00 billion by 2027, exhibiting a CAGR of 20.1% during the forecast period.
Today, the ongoing trend of online shopping and e-commerce is boosting the retail sector. With preference for online shopping, fashion and apparel industry are facing significant challenges. Several fashion and apparel companies are emphasizing on online or e-commerce sales to boost business operations. However, product fitting is one of the major challenges these companies are facing which is resulting in customer dissatisfaction leading to financial losses. To overcome this challenge, companies are implementing VFR solutions. This solution enables customers to experience product fit through visualization on kiosks, online displays, and mobile platforms.
VFR technology allows customers to try garments, jewelry, eyewear, etc. on a 3D avatar without wearing products. In that way, combining the best aspects of the virtual reality in the fashion industry generates new, interactive, personalized, and engaging experiences that benefit both customers and the seller. Thus, to raise revenue by enriching customer’s experience, different physical as well as virtual stores are deploying VFR solutions. For instance, in December 2018, Biba Apparels based in New Delhi, India has deployed ‘AstraFit’ patented virtual fitting room service to its online shopping platform. With the deployment of VFR solution, the revenue of the company increased by almost 5% within 2 months of installation.
COVID -19 Global Pandemic to Supplement the Demand for Virtual Fitting Room Solutions
The novel coronavirus outbreak has disrupted businesses across the world and the retail industry is one of the hard-hit sectors. In this current situation, product sales have seen a drastic decline owing to the significant drop in footfalls at the physical stores. The majority of the consumers prefer online shopping and e-commerce in this pandemic situation, resulting in high demand for e-commerce platforms. With the growing trend of online shopping, the adoption of virtual fitting solutions is expected to propel in the coming years. However, with the increasing focus of companies and retail stores on cost reduction and low IT spending, the adoption of VFR solution is expected to see a limited implementation in the coming two years.
On the other side, several consumers prefer shopping through physical stores, especially apparels, watches, accessories. For instance, according to a recent customer survey conducted by First Insight, Inc. nearly 54% of people are not comfortable using trial rooms after reopening of shops. Although, more than half of respondents have admitted that they will not be comfortable working with sales associates in retail stores. To avoid the spread of the virus, governments across the world have provided rules, regulations, and guidelines to the retail sector.
In May 2020, Kohl's Illinois, Inc. announced to keep trial rooms closed even after reopening, for maintaining safety. These policies have compelled retailers to adopt advanced virtual fitting room solutions to develop a safe purchasing ecosystem.
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Demand for VFR Solutions to Gain Traction in the Industry
Growing competition among online retailers is accelerating the demand for advanced technologies to provide a better shopping experience to their consumers. This significant growth in online shopping is pushing stores and companies to deploy these solutions. This interactive online platform helps customers to virtually try-on selected products so that they can choose the product as per their requirement. A virtual interactive purchasing platform also helps stores to reduce the poor fitting experience increase customized demand, and improve the efficiency of the overall purchasing process.
The capability to increase online apparel sales by growing customer satisfaction and engagement on websites will augment the deployment of virtual fitting solutions. E-commerce websites such as CaratLane, Lenskart, Metail, Model my Outfit, 3d-a-porteramong others are using VFR solutions to cater to their customers.
Implementation of Virtual Reality (AR) and Augmented Reality (AR) to Spur Growth Opportunities
The deployment of virtual reality (VR) and augmented reality (AR) are driving the demand for 3D virtual fitting rooms. VR technology helps to improve the customer engagement by providing a virtual product view, whereas AR technology utilizes devices and applications to augment the product demonstration and reduce persistent inefficiency in the e-commerce ecosystem. For instance, in October 2019, NextTech AR Solutions upgraded existing virtual try-on solutions by adding augmented reality features into it. The advanced solution uses the camera of a customer’s desktop or smartphone for trying jewelry, eyewear, apparel, and other products virtually to check for style or fit. The growing demand for VRF solutions by retailers to attain optimized costs without compromising the shopping experience of customers is resulting in the increased adoption of these solutions.
Retailers’ Focus on Maintaining Brand Commitment Drives the Market
Customers are endowed with the right to choose among the various brand options as well as have abundant options to switch the brand. In such a dynamic and competitive landscape, brand commitment has become a key concern for retailers. For instance, in February 2018, Tmall, an e-commerce platform developed by Alibaba Group Holding Ltd. launched an AR-based smart dressing room at its Hangzhou city-based shop. As brand experience is a key driver for brand commitment, many of the fashion brands are adopting VFR solutions. As the 3D virtual fitting solution is enriched with multisensory simulations for engaging customers to their brand, it is imperative that adoption of these solutions will surge in the forthcoming years.
Lack of Awareness and High Cost to Curb Adoption
Virtual fitting technology is developing and reshaping the fashion industry, however, some medium and small retailers are unaware of its advantageous features. Also, retailers with less knowledge about the deployment of VRF solutions may result in lesser adoption of this solution. People are not much aware of this solution owing to its insufficient publicity. This has become one of the major barriers for the growth of this market. Additionally, small and medium retailers are not able to afford the solution as it has a much higher implementation cost. These are some of the major factors that can hamper the VFR market growth.
Software Segment to Propel the Market Growth
Based on component, the market is segmented as hardware, software, and services. The hardware segment includes try-on digital screens and smart dressing rooms deployed in physical stores. The segment is expected to showcase average growth rate in the coming years. The software segment is expected to grow during the forecast period. Customer's preference for online shopping over traditional shopping ways is expected to drive the demand for virtual fitting software. Moreover, novel coronavirus outbreak again upsurges demand for VFR software among e-retailers.
Key players are engaged in providing professional services such as integration, support, and maintenance and consulting services. Among these, consulting services are estimated to lead, as shoppers prefer consulting services to understand the most accurate VFR solution deployment.
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Apparel Segment to Hold the Largest Market Share Owing to High VFR Adoption among Large Malls, Fashion Retailers, and Cloth Shops
Based on applications, the market is segmented as apparel, eyewear, jewelry & watches, and others. Owing to the rising preference for trying various garments, large malls, fashion retailers, and cloth shops are adopting a virtual dressing room solution. Besides, online garment shopping focuses on customer engagement by adopting advanced body fitting visualization platforms. Therefore, the VFR solution market is majorly driven by apparel shopping, as this solution reduces the purchase time.
The ongoing trend of fashionable accessories, ornaments, and watches on shopping websites is expected to drive the market in the coming years. Jewelers are likely to adopt the VFR solution to gain better customer engagement and retention.
Physical Store Dominates the Market Due to High Deployment of 3D Image Mirror and Smart Dressing Room at Stores
Based on end-users, the market is categorized as a physical store and virtual store. Increasing adoption of smartphones and smart devices is escalating the demand for e-commerce websites. Although, due to reduction in the infrastructure cost, retailers are adopting a virtual platform. Enabled by this, the segment is expected to exhibit the highest growth during the foremost years.
However, customers are still preferring shopping through physical stores owning to check products before purchasing it, resulting in high implementations of VFR solutions in physical stores. 3 dimensional fittings rooms are augmenting customers shopping experience by creating computer generated 3D images. Similarly, personalized product recommendations offered by interactive mirrors again enhances shopper’s experience. Such factors encouraging retailers to adopt the advanced smart dressing room solutions. Therefore, physical stores are dominating the market in terms of revenue generation. The virtual fitting solutions like 3D image mirror, smart dressing room, and interactive smart screens will flourish the market growth.
North America Virtual fitting room Market Size, 2019 (USD Million)
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North America is dominating the global virtual fitting room market share as a result of high adoption of AR/VR technologies. In the United States, a large number of retailers have adopted VFR based on these technologies and solutions to enhance the customer's experience and lower down operational expenditure. The trend of 3D visualization of Avtar has become favorable across the fashion consultants of the U.S, resulting in further market growth in North America.
Europe is expected to demonstrate healthy growth with an increasing number of emerging key players across the region. The European VR frontrunner countries including the U.K., Germany, Italy, France, and Spain are leaders in the adoption of a virtual fitting room solution.
Multiple AR/VR start-up firms are entering the Asian market, especially in Japan, South Korea, and China. Top e-commerce portals across China are seen to be adopting VFR solutions, booming the market growth across Asia-Pacific (APAC).
The growing popularity of e-commerce platforms and AR/VR technology will intensify the VFR solution market across the Middle East and Africa, as well as in Latin America.
Technology Adoption through Strategic Collaboration is the Key Strategy Adopted by Players
In January 2019, American Eagle Outfitters collaborated with the Aila Technologies for developing next-generation interactive fitting room technology. Strategic partnerships, acquisitions, and collaborations help market players to expand business portfolios geographically and aid the financial performance. Most of the market players are focusing on developing their virtual fitting room solution by leveraging advanced technologies.
In November 2018, FXGear Inc. released VFR technology using an avatar. The solution offered an interactive shopping experience to customers by instantly calculating the body measurements of the consumer standing in front of the display. Top fashion brands are massively deploying touch screen, virtual mirrors or interactive fitting room technologies at their physical stores to enhance customer’s experience.
In April 2018, DOTI.It, the European multi-brand and e-commerce store launched the AstraFit patented next-generation virtual dressing room platform. Digital fitting technologies for online shopping and e-commerce platforms are expected to gain traction in the industry.
The virtual fitting room market research report provides a detailed market analysis and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
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Value (USD Billion)
Fortune Business Insights says that the global virtual fitting room market size was USD 2.44 billion in 2019 and is projected to reach USD 10.0 billion by 2027.
In 2019, the North America market value stood at USD 813.3 million.
Growing at a CAGR of 20.1%, the market will exhibit steady growth in the forecast period (2020-2027).
The software segment is expected to be the leading segment in this market during the forecast period.
The implementation of AR and VR technologies drive the growth of the market.
Major players in the market are Perfitly, AstraFit. 3D-A-PORTER., Zugara, Inc., Magic Mirror, and among others
North America dominated the market share in 2019.
Brands are majorly supporting technology to enhance brand experience, expected to drive the adoption in the global market.
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