Augmented Reality in Retail (aka "MetaVerse")

STIQ interviewed 60+ companies in the 'Immersive Retail' niche focusing on the use of 3D, AR and VR in Retail use cases.

Key sector findings:

• Google attempted 3D/AR advertising a few years ago but found that [content] scalability was an issue and have since pushed a number of initiatives aiming to create a 3D,AR & VR ecosystem
• Competition has been intense but appears to be intensifying, especially in the 3D/AR for Retail sector with Apple, Amazon, Facebook, Snap, Bytedance and Google increasing spending
  
• Since 2017, four retailers (L'Oreal, Nike, Ulta Beauty and Williams Sonoma) have acquired four 3D/AR/VR companies (Modiface, Invertex, GlamST and Outward).
• Furniture retailers, such as Wayfair and IKEA are building 3D and AR capabilities fast in anticipation for WebXR releases by mainly Apple & Google
• Rumours re Google & Facebook pushing 3D & AR advertising to be released in 2020 (or earlier)
• VC investment rounds remain relatively small, possibly as a result of early hype following the release of Microsoft Kinetic in 2011
  
• Cheaper software and hardware to capture and manage 3D, 360 and AR content has spawned a cottage industry with hundreds of smaller companies creating content and possibly developing software
• 3D content creation remains the primary inhibitor. However, costs have declined and marketplaces and aggregators have entered the market increasing the attractiveness for larger companies to fully 3D digitise catalogues
• Other innovations are also reaching the marketplace such as Photogrammetry
• However, plenty of retailers are struggling to get the basic organisational structures and resources in place for digital commerse and 3D adoption may not accelerate fast in the short term
  
• AR/Immersive Retail appears driven by internal IT teams positively encouraged by business cases
  
• Immersive Retail is not equally distributed among all retail segments. Top users include Beauty & Cosmetics, Furniture & Furnishings and Accessories & Shoes
• There are significant opportunities in the sector. However, smartphone manufacturers are increasingly integrating 3D and AR functionality into new handsets. For example, Samsung has photogrammetry and AR in its latest handset

• This report provides readers with an overview of the Immersive Retail (AR content delivered on smartphones, tablets and in-store screens) market dynamics, segments, competitors and quick insights on trends in each of the sub-niche's.