Augmented reality is going mainstream. Here’s what you should know

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I’d find it hard to do my food shop without my phone in my hand. There are practical reasons: my shopping list is in my notes app, or I’m checking a recipe to make sure I have all the ingredients.

And truthfully, it keeps me entertained as I walk from aisle to aisle, whether I’m listening to music or a podcast. But what if my phone could make me feel more connected to the in-store experience, rather than pull my attention away?

Phones are set to become more central to everyone’s shopping experience. Tesco’s recent launch of digital product passports (DPPs) offer ever more discerning customers a chance to scroll through fabric sources and production details of its entire F&F clothing range, highlighting the environmental impact of each purchase.

Now mandated by EU legislation, DPPs on certain products will soon become commonplace for modern shoppers. And herein lies a new world of opportunity, as technology becomes a greater enabler down the shopping aisle.

Augmenting the in-store experience

As consumers adapt to scanning products for more information before the point of purchase, this same technology could revolutionise the in-store shopping experience. Integrating digital experiences with in-store shopping offers brands a chance to educate, enchant and entertain customers with fantastical worlds – without even stepping out of aisle three.

In a competitive landscape, grocers that show a commitment to experience and ease have a chance to stand out from the crowd and win over a new generation of digitally native Gen Alpha shoppers.

AR adoption is growing rapidly year on year, and the technology can be accessed in multiple ways. Our data shows over 300 million people engage with augmented reality each day just on their phones, but these experiences can also be delivered in-store through hardware like AR mirrors and QR codes.

When almost every shopper has a smartphone camera in their pocket, they have seamless access to AR experiences, whether these are tagged directly to products or to whole areas of a store.

Imagine how well-placed AR activations could transform the shelf presence of a CPG brand. By simply pointing their phone cameras at a bag of flour, customers could be transported from the baking aisle to a field of wheat as far as the eye can see, or perhaps Mary Berry would appear on their phone screens, armed with baking tips.

A luxury chocolate brand, keen to prove its competitive edge, might choose to drop shoppers directly into a rainforest that highlights its Fairtrade credentials, or walk customers through the high-quality ingredients in each delicious bite.

Viewers may chuckle at a TV ad, or be struck by a poster at the bus stop, but AR can enable users to place branded products directly on their face or body, or even explore a brand-built world. This depth of engagement creates far more memorable, and meaningful, experiences, which have been shown to drive conversion for brands. If users can better visualise themselves using a product, they’re already one step closer to purchase.

Price considerations

At a time when consumers are increasingly price-conscious, experience can admittedly only pull shoppers in so far. Price is one of the biggest purchase considerations.

Supermarkets know this well, using loyalty programmes to build trust with price-sensitive customers and seal the deal with exclusive offers. This is a priority for younger customers as much as staple shoppers: seven in 10 Gen Z shoppers are members of at least one loyalty scheme.

Still, value doesn’t have to be static, nor does it need to be dull. AR activations that can ‘unlock’ savings and gamify savvy spending have a real chance to stand out from the crowd, building interactivity into the everyday supermarket experience.

So as DPPs make their way to the shelves, they bring far more than just regulatory or functional value. They open the door for consumers of today and tomorrow to embrace augmented real-world experiences, and the brands that can meet their desire for entertainment with innovative experiences will capture their attention and their wallets.