Augmented reality applications that allow shoppers to "virtually" try on clothing are gaining steam in the retail space, but a recently released clip of "What You Click Is What You Wear" by TED Fellow Jinha Lee revs excitement for the technology's potential to full speed.

The following excerpt from Fast Company explains the technology:

What You Click Is What You Wear, which Lee developed alongside Daewung Kim, is a means to try on clothing virtually. It's not intended to be a shopping platform, but rather a working prototype of what's possible "when information lives in our space."

What you're actually looking at is an arm behind a transparent display, but the system could just as easily work as a HUD in something like Google Glass. The real-time simulation looks so accurate because the system tracks motion in two ways. A depth camera, like a Kinect, follows the general position of your body in space. Meanwhile, a phone, which the user holds, passes along gyroscope readings (the rotational position of your appendage).

"With just a camera, you can't rotate your arm. The watch will never follow you," Lee explains. "But if you're holding a mobile phone, you can get the orientation."

Check out the demo below:

Read more about retail technology.

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