A new reality: How AR is transforming the furniture industry

Imagining how a new sofa will work in your living room no longer takes much imagination. Thanks to augmented reality (AR), shoppers can overlay a virtual object, such as sofa or table, into their homes to see how it looks before making a purchase.

It’s an idea that’s catching on with consumers as they seek a more immersive way to shop. Nearly a third of consumers are using AR today, and 66% of consumers are interested in using AR to help them make better, more informed purchasing decisions.

Depending on the technology, consumers can use AR to interact with the product, rotate it, and even walk around it. IKEA’s newest technology, for example, lets shoppers build a 3D replica of a room and then delete existing furniture before adding new pieces. The app scales the furniture to the correct dimensions to provide a realistic representation.

Shoppers also use AR to visualize how a piece of furniture would look with different fabrics, finishes, or colors. Ethan Allen customers, for example, can use AR to try out different fabrics and finishes and customize pieces to fit their spaces.

How augmented reality benefits furniture retailers

Shoppers love AR, but furniture retailers should, too. Not only is seeing how a piece of furniture will look in a room engaging for consumers, it could also revolutionize your business. Here are a few of AR’s benefits for retailers.

Fewer returns

Because AR gives consumers a better sense of style, fit, dimension, and texture, they’re less likely to return an item. Among shoppers using AR, a recent study found 80% feel more confident in their purchases and 66% say they’re less likely to return a product after using the technology.

Increased sales and conversions

By enabling customers to experience furniture in their own homes, AR eliminates much of the guesswork and uncertainty that often accompanies online furniture shopping. A Harvard Business Review study found the likelihood of shoppers making a purchase during an AR session was 19.8% higher than customers who did not use AR. When Macy’s implemented AR into three pilot stores, the company saw a 60% increase in sales compared to stores that didn’t use the technology.

Reduced overhead

Maintaining large showrooms and inventories was once simply the cost of doing business for furniture retailers. But with AR, retailers can virtually display a wider range of furniture items, reducing inventory and associated costs, such as maintenance, rent, utilities, and staffing.

Expanded reach and market penetration

E-commerce breaks down brick-and-mortar locations’ geographic limits, but AR goes one step further to engage shoppers through mobile applications or online platforms, including consumers who may not have access to your physical stores. The expanded reach opens up new market opportunities, increases brand visibility, and allows your business to tap into a broader customer base, which can ultimately boost sales.

Data and insights

AR captures valuable data and insights about your customers’ preferences, behavior, and engagement. Analyzing this information can help you better understand your target audience, optimize product offerings, and tailor marketing strategies.

Competitive advantage

AR helps businesses stand out from competitors and demonstrates your commitment to your customers’ evolving needs and preferences. AR also encourages social sharing, as customers can capture and share their AR experiences, generating organic marketing and brand exposure.

Challenges, Transformation, and Innovation

For all its benefits, AR is not without challenges, including cost of implementation, the internal expertise and resources needed to manage it, and issues related to keeping up with rapidly changing technologies. Before investing in AR, retailers will need to determine if the costs and challenges are worth the benefits for their brand’s market, product mix, and e-commerce offering.

Despite its challenges, AR is ushering in the future of shopping. AR plays a critical role in driving purchases, offering retailers a new set of tools to improve the online shopping experience. As new technologies emerge, expect further transformation and innovation in the furniture industry. It’s simply our new reality.

About Snap Finance

Founded in 2012, Snap Finance helps customers get what they need through thousands of U.S. merchants. Snap-branded solutions include lending and lease-to-own financing solutions to help you grow your business and attract new customers. Snap’s proprietary, machine learning-based decision-making technology brings modern payment options to consumers who may not qualify for traditional financing.(1)

For more information, visit Snap Finance.

Snap-branded product offering includes retail installment contracts, bank installment loans, and lease-to-own financing. Talk with your local Snap sales representative for more details on which product qualifies at your store location. For more detailed information, please visit https://snapfinance.com/legal/financing-options

(1) Not all applicants are approved. While no credit history is required, Snap obtains information from consumer reporting agencies in connection with submitted applications, and your score with those agencies may be affected.