Augmented Reality EComm - Casestudy

JANUARY 2019 V001
AR eComm Case Study
NexTech AR Solutions Inc. © 2019 | All Rights Reserved | (CSE: NTAR) (OTC:NEXCF) 1
How AR eCommerce Solutions
is Changing the Face of
Online Retail
11X
Houzz reported that it gets 11X its
sales conversion rates using mobile
AR versus their standard app
AR has been rapidly scaling into the ecommerce landscape through

early adopters like IKEA whose app lets you see the furniture in your
house by overlaying a digital twin of the object in your living room.
Alibaba, Starbucks, IKEA, Houzz, and others have been driving AR
ecommerce because the results are increase engagement and sales.
Houzz reported that it gets 11X its sales conversion rates using
mobile AR versus their standard app, meaning a consumer is 11X
more likely to buy a couch if they use AR to see what the couch looks
like in their house. These kinds of statistically material results will
continue to drive the rapid adoption of AR into e-commerce
especially if no app download is needed.
As Augmented Reality (AR) continues to disrupt mobile marketing to

the tune of an estimated market value of more than $80 billion by
2021, brands and marketers are seeking innovative ways to leverage
this new technology to their benefit.
Bringing Reality to Online Shopping
Innovation is at the core of the eCommerce business. As an industry
that relies upon innovation and development, eCommerce
organizations must be watchful for the most recent advances that
will shape the eventual fate of how business is done on the web.
Augmented reality is one such innovation that is starting to have an

impact on the eCommerce industry. Major eCommerce brands are
already experimenting with AR. We now see eCommerce companies
using AR as a technology that can help them stand out from the
competition; deliver a more personalized experience to consumers,
and to provide shoppers with the ability to test and explore products
in ways that are similar to the in-person shopping experience.
CASE STUDY
L'Oreal is one of the largest cosmetics companies in the world. It has
revenue of over $28,572, placing L'Oreal at #379 on the Fortune
Global 500. To maintain its position at the top of its industry, L'Oreal
has had to constantly innovate, and in 2018 that meant using digital
technology to augment its shopping experiences. With mobile
commerce set to overtake e-commerce by 2021, L'Oréal's recent
commitment AR ecommerce technology leaves them poised to be at
the forefront of m-commerce growth.
CASE STUDY
Challenge:
Prior to implementing Augmented Reality, one of the biggest

challenges L’Oreal faced was that many customers had a problem
with visualizing how products will appear on their own skin or nails,
and it may not always be desirable to use samples. Shopping from
home only increased the challenge customers faced when of
predicting the most appropriate product to purchased. L’Oreal
wanted to solve this issue with its customers in innovative ways
and needed the technology to do so.
Solution:
L'Oréal Paris now offers virtual makeup try-ons on its website

without the need for a separate app download. The augmented
reality (AR) feature that overlays digital makeup samples on a
viewer's face works with a live camera shot from a smartphone or
with an uploaded selfie, according to a press release.
The "Try On" tool lets consumers test out more than 300 samples
of the brand's blush, eyeshadow, eyeliner, lipstick, lip liner and
semi-permanent hair colors on the www.lorealparisusa.com
website. Modiface, which L'Oréal acquired this year, provides the
facial recognition and AR technology to power the try-on feature.
CASE STUDY
Virtual try-ons have been one of the most popular uses of the
technology, and unlike Pokemon Go-styled gamification or
Snapchat's various branded AR lenses, AR try-ons have allowed
L'Oréal to directly affect sales by reducing friction through making a
visit to a brick-and-mortar location unnecessary. Even the expertise
offered by makeup professionals at physical stores has been made
redundant: L'Oréal added two-way consultations powered by AR and
video chat to its offering in June.
Results:
During the first nine months of 2018, L'Oréal grew by 6.8%.

Of its nearly 20 billion euros in sales, 9.7% are via e-commerce
channels.Overall, e-commerce sales have grown by 38.3%
With mobile commerce set to overtake e-commerce by 2021,

L'Oréal's recent commitment AR ecommerce technology leaves them
poised to be at the forefront of m-commerce growth
Insight:
The new try-ons are notable for being available on the L'Oréal
website, thus not requiring mobile users download a separate app.
The web-based solution gives L'Oréal more flexibility to add new
product samples without the need for subsequent app updates, and
opens up the potential audience to a wider group of consumers
whose phone memory and connectivity may be limited, or when
users simply don't want to download another app to virtually sample
makeup.
CASE STUDY
Augmented reality (AR) continues to provide new ways for retailers
to hook consumers in stores and online. Target added augmented
reality (AR) technology to its mobile app to help shoppers find the
perfect-sized artificial Christmas tree and to decorate their homes
and doubled their xmas sales
CASE STUDY
Challenge:
Estimating the size of a tree, ordering it and possibly being

disappointed when it’s unboxed, can often be part of the stress that
comes with ordering Holiday decorations online from Target. How
can they increase the confidence in the consumer decision?
Solution:
• Target’s AR shopping features are designed to ease the stress of

buying items such as holiday decorations. Instead of estimating
the size of a tree, ordering it and possibly being disappointed
when it’s unboxed, customers can get a better idea of what it
will looks like in an actual setting before placing an order.

• The AR experience uses the smartphone camera to place a
number of artificial Christmas trees—and also some furniture
items and rugs—in true-to-life sizes in the room being occupied
by the shopper, much as furniture e-commerce sites have har
nessed AR to help shoppers “place” couches and tables in their
living rooms.
• Target also added six unique “holiday rooms” to its virtual,

360-degree shopping feature. The virtual rooms show how
dozens of popular holiday products look at scale in living rooms,
dining rooms and bedrooms.
CASE STUDY
Results:
Target double Christmas Tree Sales from the 2017 holiday season.
“Hundreds of thousands of guests” are already using the “See It In
Your Space” feature, according to Target.
Insight:
Target first launched the "See It In Your Space" mobile app and web
feature in October 2017, at that time positioning it for furniture
shopping. That made a tremendous amount of sense back then, as
many different home decor retailers had launched similar apps in the
months preceding Target's announcement.
At that time, it may not have been clear how much the new feature
would benefit shoppers who might not be as picky about seeing ex-
actly how a piece of furniture looks against their own living room
backdrop. But, the feature must have been useful if Target has ex-
panded it to include its stock of artificial Christmas trees, which
really are form of seasonal furniture, right?
The claim that tree sales have doubled since being added to See It In
Your Space could represent something of a watershed moment for
such a feature.
Small Business Are Getting In On the Action
CASE STUDY
Large brands like Target and L’Oreal aren’t the only ones getting in
on the action. VacuumCleanerMarket.com is an industry leading
online retailer for Vacuums and Vaccuum supplies. The innovative
eCommerce business has been live since 2011 and generates over
2.4M in Revenue annually. VCM has served hundreds of thousands
of customers over the years and understands that the key to their
success lays in converting the many people that arrive at their site.
CASE STUDY
Challenge:
Static images and Video become more commonplace and less

engaging each season. How can they increase their Dwell time with
relevant information and engage customers with innovative ways
to learn and explore product.
Solution:
Keeping an eye vigilant eye for innovation, they recently tested

NexTech AR eCommerce solution on their site.
• The “View in AR” button was added to the product page of the
Miele Kona Complete C3 Vacuum Cleaner.
• Customers can launch the experience via desktop or

smartphone. Launched on a mobile device it allows customers
to explore the vacuum in augmented reality and preview what it
may look like in the home.
• All functionality of the vacuum is exposed in easy to read call

outs. The pinch, zoom and 360 view allows potential customers
to get a better idea of the vacuum before committing
to a purchase.
CASE STUDY
Results:
The company is seeing very positive early results from integration of

its web enabled AR with just one product. These results include:
• The first ARitized product on site generated 1 months worth of

sales ($5,000) in just 1 week.
• Overall dwell time on page for the ARitized product increased

30% over a 4 week span.
• Before AR the average visitor to that product page was worth

around $20. Post AR a Visitor to that page jumped to $43.
Insight:
Without requiring an app, VacuumCleanerMarket.com bypasses the

challenges that come with developing, maintaining and promoting
adoption of a standalone app.
Insert Quote from VCM rep
“With NexTech AR eComm we saw a significant rise in dwell time…

Feedback from our customers has been amazing…
“Try this experience yourself in your own living room”
In Home Preview
Can Augmented Reality
Benefit Your Shoppers?
Augmented reality is the segway for brands and retailers to create more
meaningful and memorable shopping experiences with the goal of driving
more informed buying decisions for consumers. The future of retail lies in
creating experiences that combine the convenience of online shopping
with the tangible elements of shopping in-store. The primary challenge to
online shopping is that shoppers fear purchasing the wrong item. Many of
the sensory elements that customers use to make their purchasing
decisions in-store are often lost when it comes to e-commerce. With
online shopping, a customer cannot touch or feel an item, see how it
works, or know how it will fit in their home. The loss of this interactivity
and presence in the shopping experience leads to uncertain buyers and
more abandoned carts.
Augmented reality is able to bridge the digital and physical. It is the

technology that will differentiate retailers in the coming year.
68% spend more time at a retailer if they can shop with AR, according to
Daymon Interactions.
MILLENNIALS & AR
Retailers are offering more tech-focused shopping experiences
to appeal to millennials and Gen Zers, who are comfortable
mixing their in-store and online shopping.
Millennials expect retailers to provide fast, convenient shopping

experiences, with 47% saying they buy online and pick up
in-store more than 40% of the time compared to 30% of Gen
Xers and 14% of baby boomers, according to a report by Euclid.
Among Gen Zers, 80% say they look forward to shopping in

stores when they have time, but 75% prefer to shop online out
of convenience, according to Criteo research.
Percentage of People who buy online

PEOPLE
expect retailers to provide
and pick up in-store purchases
Millennials Gen Xers Baby Boomers
47% 30% 14%

FAST AND CONVENIENT
online shopping experiences
Retailers like Ikea, Houzz, Artemest, Macy’s, Wayfair and
Williams-Sonoma have added 3D and AR tech to their marketing mix
to enhance the shopping experience.
Augmented reality eCommerce solutions can help shoppers navigate

past the many online purchasing obstacles. Although many brands
believe that augmented reality is an innovation of the future, it’s
providing business value right now. Innovation in e-commerce is
quickly advancing, and augmented reality is in a position to bring a
physical presence to online shopping.
200% +20 to +85 %
-20%
Increase Time Spent In Sales Conversion In Product Returns
on eCommerce Depending on Product
Platform Category
11X 2.7X 75%

Of Consumers Would
74%
More likely to More time Of consumers
like to see AR on a
Purchase In the app retail Website expect AR
Forecast augmented (AR) and virtual reality (VR)

market size worldwide (in billion U.S. dollars).
209.2 B
We are here
14.1 B 27 B
6.1 B
2016 2017 2018 2022
Who we are?
AR has always been anticipated to change the way people see the
world around them, but it will also revolutionize the way we
shop online.
ARitize AR eCommerce is an augmented reality eCommerce optimi-

zation solution, keen on helping businesses merge physical and virtu-
al experiences….
Our AR eComm solution allows retailers to easily convert the 2D

images on their product pages into 3D and embed AR product
visualization into their existing e-commerce and mobile
commerce platforms.
For retail, AR ecommerce solution removes the guesswork by allow-

ing customers to preview the products in augmented reality at home
before buying through their smartphones or tablets.
Our AR eCommerce solution positions online retailers to bring a

physical presence to the online shopping experience.
NexTech’s patent pending web-enabled AR eCommerce solution

works on every ecommerce website. It’s a universal solution which
works on every browser, including but not limited to, Chrome, Fire-
fox, Safari, as well as on every device including desktops, laptops,
tablets, and all mobile phones.
Want to get the ARitize IN HOME PREVIEWS
AR eCommerce solution? DEMO 1 DEMO 2 DEMO 3
Contact us today! Launch Launch Launch

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JANUARY 2019 V001

AR eComm Case Study

AR has been rapidly scaling into the ecommerce landscape through

As Augmented Reality (AR) continues to disrupt mobile marketing to

Augmented reality is one such innovation that is starting to have an

Prior to implementing Augmented Reality, one of the biggest

L'Oréal Paris now offers virtual makeup try-ons on its website

During the ﬁrst nine months of 2018, L'Oréal grew by 6.8%.

With mobile commerce set to overtake e-commerce by 2021,

Estimating the size of a tree, ordering it and possibly being

• Target’s AR shopping features are designed to ease the stress of

• Target also added six unique “holiday rooms” to its virtual,

Static images and Video become more commonplace and less

Keeping an eye vigilant eye for innovation, they recently tested

• Customers can launch the experience via desktop or

• All functionality of the vacuum is exposed in easy to read call

The company is seeing very positive early results from integration of

• The ﬁrst ARitized product on site generated 1 months worth of

• Overall dwell time on page for the ARitized product increased

• Before AR the average visitor to that product page was worth

Without requiring an app, VacuumCleanerMarket.com bypasses the

Insert Quote from VCM rep

“With NexTech AR eComm we saw a signiﬁcant rise in dwell time…

“Try this experience yourself in your own living room”

Augmented reality is able to bridge the digital and physical. It is the

Millennials expect retailers to provide fast, convenient shopping

Among Gen Zers, 80% say they look forward to shopping in

Percentage of People who buy online

47% 30% 14%

Augmented reality eCommerce solutions can help shoppers navigate

11X 2.7X 75%

Forecast augmented (AR) and virtual reality (VR)

ARitize AR eCommerce is an augmented reality eCommerce optimi-

Our AR eComm solution allows retailers to easily convert the 2D

For retail, AR ecommerce solution removes the guesswork by allow-

Our AR eCommerce solution positions online retailers to bring a

NexTech’s patent pending web-enabled AR eCommerce solution

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