With clothing return rates remaining high, could virtual fitting rooms be the savior?

According to a study by the National Retail Federation (NRF), consumers returned approximately $428 billion in merchandise last year, or about 10.6% of total U.S. retail sales, with apparel accounting for about 12.2% of that.

According to a survey of 401 U.S. shoppers conducted by Coresight Research, 42.4% of people returned unwanted products from March 2020 to March 2021, with clothing listed as the most returned product category, almost twice as many as electronics. Coresight's survey results also explain the reasons for consumers' returns, with "buying just to try it on" ranking seventh.

Since last year, the closure of physical stores has forced consumers to turn to online clothing purchases. The inability to try on clothing online means there is a high chance that you will buy clothes that don’t fit. Shoppers often use a similar approach when buying clothes or shoes online: buy two or even three sizes of clothes, try them on at home and only keep the ones that fit, and return the ones that don’t fit. Last year, many people bought clothing online for the first time, which may have exacerbated the high return rate in the clothing category.

To meet the needs of online consumers, more retailers are turning to virtual try-on services, allowing shoppers to try on clothes virtually.

3DLook, a mobile body measurement technology company, recently launched a new platform called "YourFit," which allows shoppers to virtually try on clothes and gives size recommendations based on user data. A brand called 1822 Denim said that since working with 3DLook, the business's return rate has dropped by about 48% and conversion rates are also increasing.

Walmart announced in May that it would acquire Israeli startup Zeekit, a company similar to 3DLook. When Zeekit's technology is embedded on Walmart's website, customers will be able to upload their own photos or choose from different models that represent their height, body shape and skin color. The site will then show whether the clothes will fit. Zeekit said its virtual fitting rooms have reduced returns by 36%.

However, virtual try-on technology is not welcomed by everyone. According to foreign media reports, two beauty retailers, Ulta Beauty and Mary Kay, have recently faced class action lawsuits for collecting, storing and using facial recognition information without the user's consent while providing virtual makeup trial services to customers. Some people believe that this lawsuit may encourage more people who oppose this technology and set off a wave of opposition. Whether virtual try-on technology can be popularized remains to be seen.

clothing

Virtual Reality

retail