Ecommerce is expected to skyrocket to $5.4 trillion, with $1 billion of that expected to come just from virtual stores, according to a recent study from Coresight Research in partnership with Obsess.
As such, immersive experiences are becoming a key strategic priority for retail companies, with the virtual store market expected to grow at a strong CAGR of 27.0% to $7.1 billion through 2030.
Retailers and brands are leveraging immersive experiences such as virtual stores, gamified shopping experiences, and social shopping, and the impact is significant. Virtual stores allow shoppers to experience a brand’s personality and ethos, driving long-term customer loyalty and real business benefits.
A recent report found that immersive experiences are among retail companies’ top three investment priorities, with data/AI-enabled content for personalization, virtual try-on, and virtual stores ranked in the top three by two in five respondents. Notably, 93% of companies surveyed will “probably” or “definitely” increase their investment in immersive experiences over the next three years.
The growth of AR and VR technologies is also contributing to the explosive expansion of immersive experiences. The AR market is set to reach $31.3 billion in 2027, while the VR market will reach $20.7 billion in the same year.
Retailers and brands that have embraced gamified shopping experiences have seen up to 10X higher add-to-cart rates and over 350% higher session times. One notable success story involved a Global Consumer Brand, which saw a 1,000% higher session time in its virtual experience compared to its traditional ecommerce channel.
For ecommerce providers, seamless user interfaces and data analytics solutions will be crucial for delivering personalized immersive experiences. And as the demand for immersive technology grows, there are significant investment opportunities for technology investors.
In conclusion, immersive experiences are reshaping the retail landscape and consumer expectations, providing a unique opportunity for retailers, brands, technology vendors, and investors to leverage these experiences for long-term success. For more insights, check out the full Obsess and Coresight Research report.
