Technology
3D commerce trends to watch In 2022
Here's a look at new ways of providing convenient and sticky customer experiences in 2022 and beyond.
March 22, 2022 by Yehiel Atias — Co-Founder and CEO, Hexa
There's no doubt, 2021 has had its fair share of ups and downs. But more than anything, the way we 'experience' business will forever be changed. More than most industries, e-commerce has undergone a complete transformation over the past year. COVID-19 ignited technological acceleration in the retail space, but these developments have been years in the making.
In 2022 alone, online sales are expected to be somewhere in the range of $5.5 to $6 trillion. With so much at stake, there will be a big push for digital transformation and you'll begin to hear phrases like virtual try-on (VTO), synthetic data, digital twins, augmented reality and metaverse so often that they'll haunt you in your dreams. However, they aren't just buzzwords. They are trends and technologies that will shape the e-commerce experiences of the future.
The emergence of VTO
For those unfamiliar with the acronym VTO, virtual try-on is fairly self-explanatory in terms of its function. Virtual try-on technology enables customers to try on products such as clothes, shoes, cosmetics or jewelry using their camera and augmented reality. It's a trend that's garnered significantly more interest during the pandemic and 2022 is expected to be a big year for the development of VTO technology. Better tracking capabilities, more powerful devices and increasingly intuitive AI frameworks will give both retailers and brands the ability to allow customers to virtually try products out online and via custom apps.
The key to success for those developing VTO technology will be to create an emotional connection between the customers and the products they are looking to purchase. From there, having a quick and easy purchase process will be what sets retailers apart. Look for this trend to continue accelerating as 3D commerce expands its reach.
Synthetic data and digital twins will have big impact
Terms like synthetic data and digital twins don't necessarily sound like retail terms, but the combination of the two will be one of the most distinctive developments we'll see in 2022. Simply put, digital twins and synthetic data both use algorithms to simulate physical products. A digital twin uses data from a physical object to create an algorithm that models the object. Synthetic data focuses more on creating AI workflows for the object, which is what makes the digital twin customizable.
For example, the 3D digital model of a shoe for sale online would be considered a digital twin of the real-life shoe — which is pretty cool in its own right. But synthetic data takes things to the next level by enabling the customization and personalization of that 3D object. We will see faster adoption and widespread use of this technology in 2022.
Seeing the positive results of this type of commerce, more brands will invest in solutions that accelerate the creation of their product's digital twins. In turn, consumers will come to expect a more personalized retail experience. Another promising use for this technology is within the marketing of goods. Instead of expensive, traditional productions, digital renders will provide companies with a more cost-effective, flexible and sustainable approach for reaching customers.
AR progression
Of the top trends for 2022, the one you may be most familiar with is augmented reality. With 1.1 billion projected users in 2022 and an $18 billion projected market value by 2023, it's been on the minds of marketers and retail management alike for years. In 2022 specifically, you may see broader use of augmented reality to bring a more immersive experience to consumers for things like store navigation, troubleshooting and other 360-degree marketing initiatives. Specific areas in the industry, such as furniture, home design, and department stores, should see further adoption of AR technology in 2022 and beyond.
Although retailers have utilized immersive AR retail experiences for some time, it's important to note that those experiences have primarily been somewhat static, 2D renderings. So, what makes today's technology so exciting is that it enables consumers to have dynamic, personalized 3D experiences to bring a whole new level of immersion to brands, goods and spaces. This is the logical next step for consumer experience and retailers must embrace it.
Metaverse makes a splash
The metaverse is going to be a scorching topic for the remainder of the year. And more importantly, retailers are going to have to understand it and learn how to shift strategy in order to make retail work in this relatively new world.
So, what is the metaverse anyway? Think of it as an extension of our physical world. It mixes virtual and augmented reality, with our physical reality. And it has the potential to produce a marketplace that meshes both worlds together.
In the metaverse, consumers will buy both physical and digital objects. They'll even be able to use the digital twins of the objects they buy from traditional retail spaces within the metaverse for their avatar selves to enjoy — and possibly sell or trade. It's already happening and it's worth billions. Today's market value for digital items lies somewhere between $5 to $10 billion.
Simply put, it may be one of the most exciting ideas forming today. Early estimates peg the Metaverse market at just under $300 billion by 2025, but this could easily change within the next few years. The core development of the metaverse stems from a mixture of both gaming and commerce that is being developed by a plethora of large tech giants and nimble, innovative startups. Nearly 19% of all worldwide retail transactions from 2020-2021 took place online, so companies need to have a metaverse strategy underway as soon as possible. As more users migrate to each new platform in 2022, the need for compelling experiences and content will rise. If content is king, there is no better place than the metaverse.
These are just a few of the ideas to be on the lookout for within the 2022 retail landscape. As we've learned over the past few years, we never really know what will disrupt our industry, let alone daily lives. But there is one certain thing; the industry will continue to look for new ways of providing convenient and sticky customer experiences in 2022 and beyond.
Yehiel Atias is founder and CEO of Hexa
About Yehiel Atias
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