Ecommerce spending is projected to rise from $2.3 trillion in 2017 to $4.5 trillion by 2021, according to Statista, as consumers transition from brick-and-mortar to online shopping. While desktops still represent about 60 percent of the market, mobile ecommerce users have grown to capture about 40 percent of the market. New technologies, like augmented reality, could help accelerate these trends over the coming years.
NexTech AR Solutions Inc. (CSE: NTAR) (FSE: N29) recently released a beta version of its web-enabled augmented reality ecommerce solution. Over the coming weeks, the company will be working with its partners to ARitize™ their products.
Why Augmented Reality?
Augmented reality, or AR, superimposes computer-generated images on a user’s view of the real world. The most popular example of AR technology was Pokemon Go—a smartphone game that superimposed Pokemon characters in real world environments. Since then, Apple’s new iPhones have introduced new AR-powered features, such as the Measure tool—a ruler that enables users to measure different things using the iPhone camera.
Mobile AR’s addressable market is massive with 3.2 billion global smartphones today and 4.6 billion by 2020. Because of the huge installed base of AR enabled devices in the hands of consumers, worldwide AR adoption is moving very fast. In fact, AR is now the fastest growing technology on the planet according to Zion Research, with a CAGR of 86.5% and is estimated to go from about a $20 billion dollar industry in 2018 to over 120 billion in 2021. What’s happening with AR on a global level is simply transformational.
The game changer for AR adoption and it becoming ubiquitous is when the AR smart glasses start hitting the market in 2019 and 2020. By 2035, AR is estimated to be a trillion-dollar industry.
AR has become increasingly popular in ecommerce, with early adoption by Shopify, Amazon, IKEA, Houzz and others enabling shoppers to:
In addition to visualizing products in a real environment, AR technologies enable shoppers to interact with objects in three dimensions to see exactly how they look. More than 35 percent of consumers surveyed by Walker Sands indicated that they would be open to purchasing more online if they had a more realistic feel of the product remotely.
The use of AR solutions could help retailers reduce returns (by enabling customers to “try on” clothing or “see” furniture) and lower costs (by having customers purchase online rather than in-person). In addition, these technologies could provide numerous upselling options by showcasing how various products look in conjunction with each other or by recommending products based on a physical space.
NexTech AR Solutions is beta testing a proprietary web enabled AR ecommerce platform for retailers and brands to easily incorporate AR functionality which gives customers a chance to interact with digital twins of their favorite products in the comfort of their own homes. The company’s AR plugin will work on every website on every browser no developer needed, no special programing needed just plug and play.
“NexTech’s web-enabled AR platform allows small and large ecommerce websites to integrate AR into the shopping experience with just a few lines of embed code, democratizing AR at scale and creating a true consumer platform,” says COO Reuben Tozman. “AR offers shoppers the confidence that will motivate purchasing decisions … and provides users with an in-store shopping experience, regardless of their location.”
In addition to 3D object visualizations, the company is developing an AI-powered guide that can learn a shopper’s style, size, and preferences to curate products for them, as well as an AR hologram that can act as a personal shopping assistant. These technologies could further distinguish its solutions from competitors that only offer 3D visualizations, while helping customers quickly find the products they want to buy.
NexTech AR Solutions Inc. (CSE: NTAR) (FSE: N29) represents a compelling opportunity in the augmented reality space. NTAR has assembled a top-flight team of developers and experienced entrepreneurs with offices in Toronto, Dallas and NYC whose mission is to bring AR to the masses through their three AR platforms: AR e-commerce, AR university and live streaming. They are targeting three multi-billion dollar verticals that all converge together under a trillion-dollar mega trend unfolding over the next decade.
With Nextech’s first mover advantage investors may want to keep an eye on the stock as it rolls out these solutions with its partners and opens the door to new revenue potential over the coming quarters.
For more information, visit the company’s website at www.nextechar.com.