Consumers are craving more meaningful and personalized shopping experiences, and virtual stores are rising to the challenge. A recent study by Coresight Research in partnership with Obsess reveals that ecommerce is projected to hit $5.4 trillion, with virtual stores alone contributing $1 billion.
Immersive experiences have become a strategic focus for retail companies and are poised to reshape the retail landscape. This is a golden opportunity for venture capitalists and strategic partners, as the virtual store market is expected to grow at an impressive CAGR of 27.0%, reaching $7.1 billion by 2030.
Brands and retailers are increasingly adopting immersive technologies like virtual stores, gamified shopping experiences, and AI-driven personalization to create unique, personalized shopping journeys. Neha Singh, founder and CEO of Obsess, emphasizes the importance of these experiences in building strong customer loyalty and driving business growth. Virtual stores allow shoppers to deeply engage with a brand’s ethos in a way traditional ecommerce cannot, resulting in long-term customer loyalty and tangible business benefits.
Retailers in the U.S. are gearing up to invest heavily in these technologies, creating lucrative opportunities for technology vendors and investors. Immersive experiences rank among the top three investment priorities for retail companies, alongside data/AI-powered personalization and virtual try-on features. A striking 93% of companies plan to increase their investment in immersive experiences over the next three years.
When investing in these technologies, brands look at metrics such as click-through rates, average order value, and net promoter score. Already, 61% of retailers are investing in virtual stores, with the majority reporting significant increases in sales. The survey found that 71% of companies using AI-enabled personalization have seen improvements in click-through rates and customer satisfaction.
Gamified shopping experiences are also gaining traction, with around 40% of companies investing in this area to boost online sales. Social shopping, embraced by 65% of companies, enhances customer engagement and acquisition, particularly benefiting fashion brands by expanding their customer base.
Augmented and virtual reality technologies are the backbone of these immersive experiences and are seeing explosive growth. The AR market is forecasted to reach $31.3 billion by 2027, while the VR market is set to hit $20.7 billion in the same year. This rapid growth indicates strong interest and investment in immersive experiences driven by evolving technology.
Online platforms like Roblox, Fortnite, and Decentraland are partnering with brands to create gamified shopping experiences, attracting millions of young users. Brands that effectively leverage these gaming experiences can tap into an engaged user base, driving revenue and brand loyalty.
Immersive experiences are reshaping how brands connect with customers. Metrics such as click-through rates, customer satisfaction, and time spent in virtual stores show that consumers are more engaged with these innovative shopping experiences. Although gamified shopping hasn’t seen widespread adoption yet, it shows great potential in captivating a younger, tech-savvy audience.
For instance, a global consumer brand worked with Obsess to create a virtual shopping experience featuring interactive games and storytelling, resulting in significantly higher session times and add-to-cart rates.
For ecommerce providers, implementing successful immersive strategies requires a user-friendly interface and continuous optimization based on customer feedback. Data analytics solutions will be essential to deliver insights from 3D spatial data and create personalized experiences. Collaborating with other technology companies to gain first-party data insights will be crucial.
The fashion industry, in particular, is ripe for AI and data-driven personalization, which can drive new customer acquisition and conversion rates. A seamless user interface is crucial to ensure customers can fully engage with the technology.
For technology investors, the growing emphasis on immersive experiences presents substantial opportunities. Companies specializing in virtual stores, AI-enabled personalization, gamified shopping, and social commerce tools are particularly promising. As brands seek to seamlessly integrate these experiences into their platforms, investment opportunities in ecommerce software and solutions are on the rise.
To explore the detailed metrics driving investment in immersive experiences and gain insights from powerful case studies, the full Obsess and Coresight Research report is a valuable resource.