AR Trends Shaping Consumer Expectations

Your retail store is dying. And your website isn't saving you. Between 2019 and 2024, retail margins shrank by 2 to 3 percentage points annually. Some verticals lost 5 to 6 points. McKinsey & Company's data is brutal: digital laggards are being crushed. Digital leaders are generating 3.3 times higher revenue growth. Here's what changed: shoppers stopped choosing between online and offline. They want both, simultaneously, perfectly integrated. And most retailers have no idea how to deliver that. I run an IT company. We build solutions for retailers across three continents. Last month, a CEO told me his conversion rates were collapsing. Premium furniture. Established brand. Loyal customers who suddenly stopped buying online because they couldn't visualize the products at home. We deployed AR visualization. His return rates dropped from 7% to under 2% in 60 days. Conversion jumped 94%. Not because the furniture changed. Because uncertainty disappeared. This is the shift. Gartner projects 80% of retailers will deploy AR by end of 2025. Not as an experiment. As survival infrastructure. The AR/VR market just crossed $100 billion and will double to $200 billion by 2030. But here's what the research from Deloitte and McKinsey & Company reveals: technology adoption means nothing without transformation. Retailers spending millions on AR while running legacy systems from 2010 are burning money. The winners are rewiring their entire tech stack around immersive experiences. Forty percent of shoppers will pay premium prices for products they can test through AR. Over 90% of American consumers are open to AR shopping. Gen Z expects it. They're not impressed by virtual try-ons anymore. They're confused when you don't offer them. The brutal truth: if your customer can't see your product in their space, in their context, in real time, they're buying from someone who makes that possible. The gap between leaders and laggards isn't closing. It's accelerating. The revolution isn't coming. You're already late.

During my decades in retail, I’ve seen how yesterday’s innovations become today’s customer expectations. Which means I’m always on the lookout for the latest breakthroughs that are poised to become tomorrow’s “table stakes.” Things like omnichannel retailing, price matching, curbside pickup and self-checkout have quickly gone from unique selling points for retailers to baseline expectations for consumers. Here are some emerging technologies I’m watching: 𝗛𝘆𝗽𝗲𝗿-𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 According to Sender.net, 80% of self-identified frequent shoppers say they only buy from businesses that tailor their experiences. Hyper-personalization, driven by advanced data analytics and AI, allows us to offer customized recommendations, promotions, and services. This level of personalization will soon be a fundamental aspect of customer engagement, ensuring each interaction feels unique and relevant. 𝗔𝗿𝘁𝗶𝗳𝗶𝗰𝗶𝗮𝗹 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲 (𝗔𝗜) AI is revolutionizing retail, from predictive analytics and inventory management to customer service and personalized marketing. AI-driven chatbots and virtual assistants enhance the shopping experience by providing instant, accurate responses and recommendations. As AI continues to evolve, it will become integral to retail operations as a way of optimizing operations and boosting customer satisfaction. 𝗩𝗶𝗿𝘁𝘂𝗮𝗹 𝗮𝗻𝗱 𝗔𝘂𝗴𝗺𝗲𝗻𝘁𝗲𝗱 𝗥𝗲𝗮𝗹𝗶𝘁𝘆 (𝗩𝗥/𝗔𝗥) VR and AR technologies are opening new dimensions in customer engagement. Virtual try-ons, immersive product displays, and interactive store experiences are reshaping how customers interact with brands. These technologies provide a rich, engaging shopping experience that transcends traditional boundaries. Soon, they will be critical elements of the retail landscape. 𝗔𝗱𝘃𝗮𝗻𝗰𝗲𝗱 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗠𝗲𝘁𝗵𝗼𝗱𝘀 I recently checked out at my local Whole Foods using just the palm of my hand. Contactless biometric payments like this are becoming more prevalent. So are digital wallets including cryptocurrencies. These advanced payment methods offer greater convenience, security, and speed, aligning with the expectations of today’s tech-savvy consumers. Adopting these technologies will soon be essential for our customers. 𝗘𝗺𝗯𝗿𝗮𝗰𝗶𝗻𝗴 𝘁𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 The future of retail is unfolding before our eyes, with rapid innovation and ever-evolving customer expectations. As a retail leader, my role has always been to ensure my teams not only adapt to these changes but anticipate them. By integrating today’s breakthroughs and preparing for tomorrow’s advancements, we can continue to deliver exceptional value and experiences to our customers. The key to success lies in our ability to remain agile, innovative, and customer-centric. The future of retail is now, and it’s an exciting journey we’re all embarking on together.

My recent interview by the The Australian Financial Review focuses on how cost‑of‑living pressures are reshaping consumer expectations in financial services. With inflation lingering, Australians are becoming far more discerning. Tolerance for high fees, uncompetitive rates and generic products is falling fast. What’s replacing it is a clear expectation of value, relevance and personalisation. In the article, I spoke about how personalisation is no longer a “nice to have”. Whether it’s tailored alerts, proactive support when finances are strained, or modular products that let consumers dial features up or down, expectations are being set by the best digital experiences — not just by other banks. These demands are even more pronounced for people living and working across borders, where fragmented accounts, multiple currencies and regulatory complexity make seamless, personalised services a functional necessity rather than a luxury. The real differentiator going forward isn’t personalisation alone, but trusted execution at scale: using data responsibly to reduce friction, deliver relevance, and earn consumer trust. https://lnkd.in/gZtEsdsj RMIT University RMIT College of Business and Law Centre for Organisations and Social Change (COSC) #FinancialServices #Personalisation #ConsumerBehaviour #Fintech #Banking #CostOfLiving #TrustAndData

While the world continues to be captivated by the advances in Artificial Intelligence, there’s another silent revolution unfolding, one that’s not just powering minds, but enhancing how we perceive, feel, and engage with reality. 𝐀𝐮𝐠𝐦𝐞𝐧𝐭𝐞𝐝 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 (𝐀𝐑), 𝐕𝐢𝐫𝐭𝐮𝐚𝐥 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 (𝐕𝐑), 𝐚𝐧𝐝 𝐄𝐱𝐭𝐞𝐧𝐝𝐞𝐝 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 (𝐗𝐑) 𝐚𝐫𝐞 𝐧𝐨 𝐥𝐨𝐧𝐠𝐞𝐫 𝐟𝐮𝐭𝐮𝐫𝐢𝐬𝐭𝐢𝐜 𝐜𝐨𝐧𝐜𝐞𝐩𝐭𝐬 They are here, they are practical, and they are solving real-world problems in ways traditional technology cannot. In India, where the challenges of geography, affordability, access, and diversity intersect, AR, XR, and VR are becoming critical enablers of transformation—especially when integrated thoughtfully with AI. India is emerging as not only a fast adopter but also a high-potential creator in this space. In the 🎯 healthcare sector, Indian giants like Apollo Hospitals and healthtech platforms like MedAchievers have adopted VR-based training and patient rehabilitation. AR-assisted surgeries are helping surgeons visualize and execute complex procedures with higher precision. In the 🎯 manufacturing and heavy engineering sector, Tata Motors and Larsen & Toubro are leveraging AR for remote diagnostics, equipment training, and quality control on the assembly line. VR simulations are replacing costly physical prototypes in the design stage, and digital twins powered by XR are reducing error margins and boosting productivity—proven to increase operational efficiency by up to 30% according to McKinsey. 🎯In Rajasthan, VR-enabled science labs are enabling students in government schools to explore anatomy and physics beyond textbooks. 🎯 Real estate has embraced immersive technology with open arms. Noida-based startup SmartVizX has transformed project walk-throughs using VR, allowing clients—especially NRIs—to explore properties remotely. Top brands like Godrej Properties and DLF have reported a 25–30% higher lead conversion using VR-assisted sales kits. 🎯 Retail and e-commerce too are evolving beyond product images. Lenskart’s AR-powered virtual try-on, Tanishq’s immersive try-before-you-buy feature, and Reliance Trends’ AR dressing rooms are reducing product return rates and enhancing buyer confidence. These experiences build brand loyalty in an increasingly digital-first customer base. 🎯 In the tourism and culture sector, the Archaeological Survey of India and Incredible India campaigns have begun integrating AR/VR for virtual explorations of monuments like Hampi, Ajanta Caves, and Konark. We must not overlook the invisible interface layer that makes all this accessible, experiential, and real. AR/VR/XR is not just about entertainment or gaming; it’s about operational transformation, deeper engagement, and scalable problem-solving. If AI is the brain, XR is the nervous system connecting, visualizing, and enabling actions across sectors. #augmentedreality #virtualreality

After talking with over 50 users of our competitors, we noticed a common theme: their products are too static. Today's users are seeking experiences that adapt to their behaviors, providing tailored, dynamic interactions, particularly as AI technology advances. Everyone expects immediate value - they desire proactive solutions that anticipate their needs before they even ask. For instance, with Nevemind : - Who should I reach out to this week to close my sales quota? - Which important emails have I overlooked? - What key insights am I missing about my network today? Additionally, there's a growing preference for more defined, streamlined experiences over broad, vague ones. Users appreciate being guided consistently from the moment they onboard. This shift is evident in many apps like Delta (portfolio analytics), BeReal., Snap Inc., Duolingo, and Wordle, which not only meet these preferences but also guide users through their interactions. The trend towards personalized, anticipatory technology is apparent and seems set to continue shaping user expectations and product development. #AI #UserExperience #

💲 💲💲Luxury’s Future: From Couture to Clicks (and Why Playing It Safe Isn’t an Option)💲💲💲 "Luxury is dead." Heard that one before? Every few years, someone predicts the demise of high-end fashion, yet here we are, dissecting its reinvention once again. The luxury industry isn’t dying; it’s evolving. And it’s not evolving fast enough. 📉 The Amazon Effect: Threat or Opportunity? By 2027, Amazon is projected to claim 20% of global online luxury sales. Why? Convenience. Yet, 78% of luxury shoppers still prioritize exclusivity and brand storytelling over free two-day shipping. Brands that strategically leverage platforms like Amazon while maintaining exclusivity will thrive. It’s about finding the balance between reach and identity, and that starts with compelling storytelling. ♻️ Sustainability Is the New Status Symbol Today, 68% of global consumers consider sustainability a key factor in luxury purchases, yet only 12% of brands meet critical sustainability benchmarks. Meanwhile, resale platforms like Vestiaire Collective and The RealReal are growing 11x faster than traditional retail because circularity is redefining ownership. Luxury isn’t just about crafting products. It’s about creating movements. Consumers invest in the "why", not just the "what". 🤖 Tech Is the New Runway Virtual fittings, AI personalization, and 3D design are revolutionizing luxury. By 2025, these innovations will cut design cycles in half and reduce waste by 50%. And don’t overlook AR. Try-before-you-buy augmented reality is driving a 94% increase in conversion rates on DTC platforms. This isn’t just tech for tech’s sake; it’s about building emotional connections that leave a lasting impression. 🛍️ DTC vs. Marketplaces: A Balancing Act In 2023, DTC sales in luxury grew by 31%, yet 53% of online luxury sales occurred on marketplaces like Farfetch, Amazon Luxury, and Alibaba. Success isn’t "either-or"; it’s mastering both. Consistency is key. Whether it’s on Amazon or in a flagship boutique, customers should feel the same emotional connection to your brand. 🎤 Pop Culture + Couture: The Billion-Dollar Collab Cultural relevance isn’t optional. Collaborations with icons like Rihanna and Pharrell are more than buzz, they’re driving up to 25% sales increases in launch quarters. This isn’t about chasing trends. It’s about aligning with cultural moments that matter to your audience while staying true to your brand’s story. Bottom Line Luxury’s future is tech-driven, sustainable, culturally relevant, and customer-focused. Platforms like Amazon aren’t threats, they’re opportunities for brands willing to evolve. For me, the thrill is helping brands uncover what makes their story unique and turning that into emotional connections that drive action. People don’t just buy products, they buy stories, identities, and emotions. #LuxuryRetail #EcommerceInnovation #Sustainability #FutureOfFashion #DTCSales #AmazonLuxury #Leadership #FashionTech #RetailReinvention

What consumers want is shifting fast ! The ‘2026 Global Consumer Predictions’ from Mintel shares some insights on what’s shaping tomorrow - 🔹 Anti-Algorithm Pushback - Consumers want control over their digital lives, rejecting mindless feeds. - 69% of US gamers find algorithmic recommendations less interesting than friends’ suggestions. - 63% of UK adults say AI makes them value human-created things more. Brands will have to decide whether their purpose is to empower people or simply feed the algorithm. 🔹 The New Young Age is just a number - life stages blur as people live longer and rethink youth. - 45% of US consumers want to stand out more (vs. 36% in 2023). - 36% of Canadian Millennials prioritize enjoying life & making memories over retirement savings. Consumers will need support in finding balance - a time to save, and a time to enjoy. Reinvention will become a normalized way to approach life, at any age. 🔹 The Affection Deficit - Automation is growing, but humans crave real emotional connection more than ever. - 56% of UK singles aged 18-24 say online dating makes finding a partner harder. - 76% of Canadian pet owners rely on their pets for emotional support. In 2026, winning brands will focus on empowering consumers, sparking genuine connection, and offering flexibility - not just following algorithms. Real creativity and emotional relevance will build loyalty, not just virality. #ConsumerTrends #BrandStrategy #HumanConnection

Only 1% (!!) of retailers are using AR. It's the biggest sleeping giant in all of eCom. Here's where things stand TODAY and the FUTURE brands and retailers need to prepare for ⤵️ BACKGROUND: Flat screens are misaligned with how we experience the world. We live in 3D. We shop in 2D. That disconnect drives returns, reduces conversions, and erodes consumer confidence. AR and 3D are closing that gap. E-commerce lives and dies on trust. In physical stores, consumers see, touch, and interact with products. Online, AR bridges that experience, transforming hesitation into certainty. TODAY’S LANDSCAPE (1) AR is already proving ROI. 70% higher conversions. 28% lower return rates. (2) Adoption is accelerating. Advancements in device hardware, 5G, and AI-powered rendering are making AR scalable. (3) Market leaders are setting the tone. AMAZON is creating the standards others will follow.  IKEA has positioned AR as central to furniture shopping. WALMART is bringing AR to the masses. And this is just the beginning. Brands and retailers need to get on board because the train isn't slowing down any time soon. TOMORROW’S LANDSCAPE Phase 1: Visual AR (2025 and beyond): Virtual try-ons and room visualizers are delivering results now. Phase 2: Haptic feedback, full sensory, and beyond screens (2030+): Devices will let consumers “feel” textures, unlocking new AR categories. Shopping will integrate sound, smell, and touch. Mixed reality will redefine what a “store” means. This might feel like science fiction, but it’s not *if* this happens—it’s *when*. Waiting will make catching up far more costly. 2D e-commerce isn’t dead yet, but it’s on its way out. AR and 3D will define how consumers shop in the next five years. The brands investing now aren’t just meeting expectations—they’re shaping the future.

The start of this decade brought dramatic shifts in consumer behavior. Overnight, remote work, digital connectivity, and solo activities became the norm. While the world has reopened, the lasting effects of that era are still shaping how people spend, think, and prioritize. Today, five key trends are redefining the consumer landscape: 1. People are spending more time alone and online 2. Digital channels win users—but not their trust 3. Gen Z grows up and spends 4. Consumers lean local over global 5. Consumers solve the value equation in new ways These shifts show that old frameworks for understanding consumer behavior no longer apply. Businesses that adapt to these trends will be better positioned to stay relevant and grow. In our latest State of the Consumer report, we explore these trends and share strategies to navigate this evolving landscape. Change is here—how will your organization respond? https://lnkd.in/gjDsFyxH #ConsumerTrends #EconomicOutlook #SpendingHabits

As of December 11, 2024, several emerging trends align with anticipated developments for 2025: 1. Fashion and Footwear: • Barefoot Shoes: Balenciaga’s Spring/Summer 2025 collection features the Zero, an ultralight 3D-molded barefoot sandal. This design promotes natural foot movement and improved posture, indicating a shift towards minimalist footwear. 2. Home Decor: • Pinterest’s 2025 Predictions: Upcoming trends include rich red hues (“Cherry Coded”), hand-painted accent walls (“Blank Canvas”), and a revival of 1920s art movements (“Modern Surrealism”). These trends suggest a blend of vibrant colors and creative expression in interior design. 3. Technology: • Gartner’s Top Strategic Technology Trends for 2025: Key trends include Agentic AI, AI governance platforms, and polyfunctional robots. These advancements highlight the growing integration of AI in various sectors, emphasizing the need for responsible AI use and the development of multifunctional robotic systems. 4. Wellness: • Longevity Focus: Consumers are increasingly prioritizing health and I longevity over traditional beauty products. This shift is driving interest in preventive wellness solutions, digital health tracking, and supplements like NAD+. Companies are expected to innovate with AI integrations for real-time health insights. These trends reflect a convergence of technology, health, and design, shaping consumer behaviors and industry strategies as we approach 2025. What are you seeing? #trends #futurology #insights