Predictions for 2025 in Augmented Reality and eCommerce

In 2025, augmented reality (AR) is set to play a pivotal role in the evolution of eCommerce, social commerce, and retail experiences. Building on the rapid developments of 2024 — including gaming integrations, interactive AR filters, and livestream shopping — brands are finding innovative ways to connect with consumers. From virtual try-ons and immersive retail environments to AR-enhanced travel and property viewings, these technologies are poised to bridge the gap between digital and physical worlds. This article explores the key trends and applications of AR that are likely to reshape how brands engage customers, drive sales, and create personalised shopping experiences in the coming year.

Gaming: The New Retail Frontier

The integration of shopping experiences into gaming environments represents an emerging opportunity in retail, with brands experimenting across multiple platforms and formats. With approximately 3.4 billion gamers worldwide, the potential audience is vast and remarkably diverse. Less than a third (27%) of gamers are in the 21-30 age range. This wide age distribution challenges the common misconception of gaming as a youth-dominated medium, highlighting instead its broad appeal across generations and offering brands access to consumers with varying purchasing power and interests.

Several successful executions have demonstrated significant potential for audience engagement and eCommerce:

Platform Diversity and Brand Activations

Roblox Initiatives

Roblox, with over 42 million daily active users across age groups, has hosted several notable brand activations:

• Nike's "Nikeland" has attracted 6.7 million visitors from 224 countries, showcasing how brands can create persistent spaces for community engagement

• The November 2020 Lil Nas X concert marked an early commercial success, generating seven-figure merchandise sales from 33 million visits: https://www.theverge.com/2020/11/16/21570454/lil-nas-x-roblox-concert-33-million-views

• Gucci Garden experience demonstrated luxury retail possibilities

• PUMA's "Land of Games" showed how sports brands can blend gaming mechanics with brand storytelling. it’s an experience where you and your friends can team up in Soccer, Dodgeball and an Endless Runner to collect new Puma gear as you level up your player.

Fortnite Collaborations

• Balenciaga created exclusive skins and a virtual store

• Moncler brought their clothing collections into the game: video: https://youtu.be/owxS0xiITqk?si=U5pDmT_0dUF6A65f

• Marvel's various character skin collaborations have shown the potential for licensed merchandise

• John Cena's WWE gear integration combined virtual and physical product launches

Other Gaming Platforms

• Louis Vuitton partnered with League of Legends to create prestige skins and a real-world capsule collection

• Burberry created exclusive character skins for China's Honor of Kings. Riccardo Tisci, Burberry’s chief creative officer exclusively designed two skins for the mobile game’s popular heroine, Yao, which sees the character wearing ‘look 9’ from Tisci’s spring/summer 2021 collection for Burberry, a warm royal blue collarless trench coat and bib-front trousers, with a crystal-embroidered vest and black leather wader boots. With fans of the game being able to buy the look for their character in-game, or for themselves online and in stores in mainland China.

• Coca-Cola launched limited-edition virtual wearables in Decentraland. A futuristic jacket illuminated with effervescent fizz, purposely designed with subtle nods to Coke’s nostalgic delivery uniforms.

• Adidas entered The Sandbox with digital real estate and NFT wearables

Mobile Gaming Integration

• Snapchat's AR try-on features have been integrated into casual mobile games

• Pokemon GO has partnered with various brands for location-based retail activations

• H&M launched a virtual showroom in Animal Crossing: New Horizons

VR Gaming Opportunities

The emerging VR gaming space presents unique opportunities for luxury brands, particularly in social VR environments where digital status symbols carry significant social capital. While playing Vegas Infinite VR Poker on my son's Oculus at the weekend, I noticed players at the table showing off their flashy watches (that can only be won in various competitions). It caused me to think about the brand opportunity for Rolex and other luxury brands in virtual spaces. Rolex, being the ultimate "I appear to be richer than you" lifestyle accessory in the real world, should make virtual watches available to buy in VR at a premium. Just as physical Rolex watches serve as lifestyle accessories signalling success and affluence, virtual versions could command premium prices in VR environments where social status and personal expression are increasingly important.

Such a strategy would ensure brand exclusivity through premium pricing in virtual spaces while creating new revenue streams that don't dilute the core brand value. By tapping into the existing social dynamics of VR gaming communities, luxury brands could effectively bridge physical and virtual expressions of luxury.

That being said, a recent trademark application in the United States reveals potential strategic thinking by Rolex around digital spaces. The filing seeks to protect Rolex's rights around "downloadable software containing virtual objects, digital collectibles and non-fungible tokens (NFTs)" as well as "software capable of displaying products virtually, such as works of art, photographs, images, sounds, avatars, watches." The comprehensive nature of this trademark protection, which extends to financial matters and virtual currency exchange, suggests Rolex is positioning itself for potential licensing and revenue-share opportunities in virtual environments.

This approach would align with their traditional business model of careful brand control while allowing them to capitalise on the growing virtual luxury market through strategic partnerships. The licensing model could prove particularly effective in VR gaming communities, where competition and achievement-based distribution of branded virtual items could create an engaging layer of exclusivity while protecting the core brand value. This strategy would allow Rolex to tap into digital social dynamics without compromising their traditional retail approach.

Interactive Augmented Reality Filters and Try-On Experiences Drive Purchase Intent

Augmented Reality (AR) filters have evolved far beyond their origins as entertainment features. Platforms like Snapchat, which pioneered AR filters (or “lenses”), have transformed into serious commerce tools, bridging digital and physical retail experiences. The convergence of social media AR with traditional retail is accelerating, with brands increasingly using AR to enhance try-on capabilities and create more engaging, personalised shopping experiences.

Fashion's Digital Fitting Room

Several major retailers are integrating AR mirrors into their physical locations to create interactive shopping experiences:

• Walmart-owned Zeekit is developing technology to show how clothing might look on different body types, though true garment draping simulation remains a challenge (see video) - Virtual fitting rooms currently focus on basic size recommendations and 2D overlays rather than sophisticated body mapping: https://corporate.walmart.com/news/2022/03/02/walmart-launches-zeekit-virtual-fitting-room-technology

• Men’s Wearhouse and Nike stores in the U.S. are installing AR mirrors that let customers virtually try on clothing and footwear.

• In July 2024, Selfridges partnered with Snapchat to launch an AR locker room at their Oxford Street store. Shoppers can try on virtual sports kits and easily save or share their try-ons via integrated QR codes.

• Pinterest have introduced basic AR clothing try-on features, primarily for items like shoes and accessories where fitting is less complex: https://help.pinterest.com/en-gb/article/try-on

Experimental Retail Concepts

Snapchat’s October 2024 launch of ‘Snap Street’ in East London represents a new frontier for AR retail. This immersive, AR-enabled shopping street in Ely’s Yard features:

• Depop’s AR Mirror: Shoppers can virtually try on second-hand and vintage clothing, promoting sustainable fashion through the concept of circular fashion.

• Snapchat x Boots Vanity Mirrors: These interactive mirrors let customers explore beauty products from popular brands like Made by Mitchell, Beauty Crop, and Milk.

This expansion from single-store AR experiences to full-scale retail environments highlights Snapchat’s vision for the future of shopping. As Ben Wymer, Snapchat’s Director of Global Brand Experience, explains, their AR technology allows customers to "experience on screens how products look and behave in the real world," making shopping more engaging and personalised.

The fashion sector is working to overcome technical challenges in virtual try-on experiences as most "virtual try-on" experiences in fashion still rely on traditional photography showing items on different sized models rather than true AR simulation

Home Decor Revolution

Furniture and home decor brands have transformed the home shopping experience through AR:

• IKEA's AR app now includes AI-powered room planning features that suggest furniture combinations: https://www.ikea.com/global/en/newsroom/innovation/ikea-launches-ikea-place-a-new-app-that-allows-people-to-virtually-place-furniture-in-their-home-170912/

• Dulux's Visualizer app lets users point their phone at walls to preview paint colours, though lighting accuracy remains a challenge: https://www.dulux.co.uk/en/articles/dulux-visualizer-app

• Sherwin-Williams' ColorSnap offers similar visualisation but currently struggles with consistent colour representation across different devices: https://www.sherwin-williams.com/en-us/color/color-tools/color-visualizer/active

2025 Predictions: Technical Advancements

Looking ahead to 2025, several key technological improvements are set to enhance AR shopping experiences:

Enhanced Realism

The next generation of AR shopping experiences will deliver significantly improved visual fidelity through several key technological advances. Next-generation depth sensing technology will enable virtual products to be placed more accurately within real environments, while advanced lighting algorithms will ensure these digital objects respond naturally to ambient lighting conditions. Combined with improved surface detection, these advances will allow virtual products to interact more realistically with their surroundings, making AR try-ons and product visualization increasingly indistinguishable from physical items.

AI Integration

In 2025, AI will evolve beyond basic product recommendations to become an intelligent shopping assistant in AR experiences. As customers interact with virtual products, AI will learn from the subtle ways they style pieces, their hesitations and viewing patterns to deliver more personalised assistance. New machine learning models will improve body mapping accuracy, helping retailers understand how different fabrics and cuts sit on various body types. This advancement will lead to more reliable size recommendations across retailers, addressing one of virtual shopping's persistent challenges – returns rates.

Predictive capabilities will become notably more contextual. AI systems will spot gaps in seasonal wardrobes, recognise when key pieces need updating based on wear patterns from previous purchases, and adjust recommendations based on local weather forecasts or upcoming events in users' diaries. This enhanced contextual awareness, combined with improved AR visualisation, will make virtual shopping feel more like working with a knowledgeable personal stylist who understands both your preferences and lifestyle needs.

Seamless Commerce Integration

Beyond 2025, the barriers between virtual try-on and purchase will dissolve as AR experiences integrate directly with payment systems. Shoppers viewing themselves in virtual outfits will complete purchases without leaving the AR environment, using their preferred digital payment methods. This integration will extend beyond simple transactions – real-time inventory systems will instantly verify stock levels across retail locations, offering customers immediate collection options or delivery times based on their location.

Social Features

I’m convinced that AR shopping will become inherently social, building on foundations laid by platforms like Snapchat's AR retail spaces. When trying on virtual outfits, shoppers will instantly share their looks with friends, receiving real-time feedback and suggestions. This mirrors how Selfridges' AR locker room implementation already allows customers to save and share their virtual try-ons via QR codes, but takes it further by enabling live interaction.

User-generated AR content will form the backbone of virtual shopping communities. Shoppers will contribute their own styling combinations to community galleries, creating a constantly evolving source of inspiration that blends commercial products with real-world fashion creativity. These galleries will become valuable resources for retailers, offering insights into how customers actually style and combine products.

Live AR shopping sessions will evolve beyond current livestream commerce formats. Friends will meet in virtual fitting rooms to try on outfits together, while influencers will host interactive AR styling sessions where viewers can try on the same pieces in real-time. This builds on experiments like Snap Street's physical-digital hybrid spaces, but removes the need for physical presence entirely.

Emerging Applications

In 2025, AR commerce is likely to expand well beyond its origins in retail. Electronics retailers may move past basic product visualisation by offering interactive demonstrations. These could allow customers to virtually unbox products, test features, and see how devices integrate with their existing setup. Rather than just displaying product dimensions, these experiences might demonstrate real functionality.

The travel sector is expected to enhance how holidaymakers book trips. Instead of relying solely on carefully angled photos, travellers could use AR to virtually walk through hotel rooms, explore resort facilities, and preview destinations before making bookings. This innovation may reduce uncertainty in travel purchases and help customers make better-informed decisions about their accommodation.

Educational institutions might also benefit by reimagining campus tours through AR. Prospective students could explore facilities from home, access real-time information about each building, view inside lecture halls, and visualise how dormitory furniture might fit with their belongings. Such experiences could be especially useful for international students considering studying abroad.

In the property sector, AR commerce is likely to have highly practical applications. Estate agents may offer virtual viewings that go beyond current 360-degree videos. Potential buyers might see how their furniture fits in each room, view historical property data overlaid on different features, and access information about local amenities while virtually walking through a space.

Success in these new areas is likely to depend on developing AR experiences that address real customer needs rather than simply using the technology for its own sake. The businesses that succeed could be those that integrate AR naturally into their existing customer journey, making it feel like an expected part of the purchasing process rather than a special feature.