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Virtual Fitting Room Market Overview
The global virtual fitting room market is expected to witness rapid growth between 2019 and 2024, on account of the growing consumer inclination toward online shopping, increasing demand for personalized experience, rapid shift toward digitization, changing lifestyle of people, and growing adoption of technologies such as augmented reality (AR) and virtual reality (VR). To provide a convenient shopping experience to the users, online and offline fashion retailers are increasingly introducing virtual fitting room applications, thus supporting the market growth.
On the basis of component, the virtual fitting room market is categorized into hardware, software, and services. Of these, the software category is expected to hold the largest share in the market in 2018. This can be attributed to the increase in demand for virtual dressing room solutions from e-commerce platforms, physical apparel retail stores, and related kiosks.
E-commerce platforms and physical stores are the major end users of virtual dressing room solutions in the market. Between the two, physical stores accounted for the larger share in the virtual fitting room market in 2018. Further, during the forecast period, faster growth in the market is expected from e-commerce platforms, owing to the growth in the e-commerce industry and growing consumer preference for these platforms, as they facilitate time-saving, hassle-free shopping.
Based on application, the virtual fitting room market is classified into apparel, beauty and cosmetics, footwear, and others, wherein others include eyewear, jewelry, and watches. Among these, the apparel category is expected to demonstrate the fastest growth in the market during the forecast period.
Geographically, North America is expected to hold the largest share in the virtual fitting room market in 2018, owing to the expansion in the e-commerce industry and the early adoption of technology in the region. However, faster growth in the market during the forecast period is expected in the Asia-Pacific (APAC) region, which can be mainly attributed to the increasing smartphone penetration in the country and growing consumer shift toward online shopping.
Virtual Fitting Room Market Dynamics
Growing consumer proclivity for online shopping is one of the major trends observed in the virtual fitting room market, globally. Major factors propelling this trend are free shipping, time-saving nature of the medium, availability of a variety of options, convenience and high level of comfort associated with shopping, and price competitiveness. The retail e-commerce sales are expected to reach $4.5 trillion by 2021, from $2.1 trillion in 2017.
However, in the online fashion industry, the return rate of apparel is quite high, majorly due to sizing and fit concerns. Virtual fitting rooms are, thus, the solution to this conundrum, as these allow the customers to virtually try on clothes, with advanced technologies facilitating accurate measurements and ensuring a proper fit. Thus, with online shopping gaining momentum among the masses, retailers are increasingly embracing virtual fitting room solutions to improve customer experience and streamline the entire fitting and trial process.
Increasing adoption of technologies such as AR and VR by large retailers, such as Amazon Inc., Walmart Inc., and eBay Inc., is a major factor driving the virtual fitting room market. The technology adoption in stores is facilitating improved customer interaction and providing customers with a personalized shopping experience. For instance, Amazon Inc. is working on the development of a fashion app that would allow users to try outfits in a virtual changing room. The app would mine user data to offer recommendations and allow customers to discover new items of clothing under the tabs such as ‘randomize’, ‘search by look’, and ‘find more like this’. Hence, with the growing implementation of advanced technologies, the virtual fitting room industry is expected to witness significant growth in the coming years.
The challenge to integrate data from multiple sources, such as social media and personalized emails, in virtual dressing room solutions can be viewed as a factor hampering the market growth. Data integration involves understanding of customer behavior and mapping of heterogenous data, which can be difficult to achieve in a system. Moreover, the high cost of product implementation continues to discourage the consumers from adopting these solutions, thus affecting the growth of the virtual fitting room market.
Virtual Fitting Room Market Competitive Landscape
The virtual fitting room market is consolidated in nature. The players in the market are increasingly focusing on new product launches for physical stores and online retail stores to capture a larger market share.
For instance, in December 2018, Autumn Rock Limited, a U.S.-based virtual fitting room solution provider, collaborated with BIBA Apparels Private Limited, launched a virtual dressing room platform. The system requires the manual measurement of only one size of any garment to calculate all other sizes automatically. The company increased its conversion rate by three times and increased revenue by 5% within two months of integrating the system.
Some of the major players operating in the global virtual fitting room market are Zugara Inc., True Fit Corporation, Fit Analytics GmbH, Autumn Rock Limited, Imaginate Software Labs Private Limited, Metail Limited, Else Corp Srl, Fision AG, FXGear Inc., and MemoMi Labs Inc.
The report covers country-wise virtual fitting room market analysis. Some of the major countries covered in the report are the U.S., Canada, France, Germany, the U.K., Italy, Spain, China, Japan, India, South Korea, Australia, Brazil, Mexico, South Africa, Turkey, Saudi Arabia, and the U.A.E.