Dive Brief:
- With social commerce projected to grow over the next few years, research commissioned by Snapchat suggests that augmented reality tools will become more important for brands and retailers looking to connect with young shoppers.
- Ninety-two percent of Gen Z consumers want to use augmented reality tools for e-commerce, according to Snapchat's survey of 16,000 users in 16 markets, conducted by Global Crowd DNA. Gen Zers are more likely than millennials and Gen X to buy a product that they first experienced using AR, per the report.
- Sixty percent of Gen Z consumers said that AR experiences feel more personal and over half of Gen Z would be more likely to pay attention to an ad that uses AR.
Dive Insight:
Snapchat has been investing in augmented reality features to help shoppers visualize products before buying them and connect with brands. The social network has teamed up with companies like Gucci and American Eagle to create augmented reality experiences on its app highlighting their products, and has enhanced the functionalities of its AR through partnerships with tech firms like Perfect Corp.
The social network has added a variety of features to its app and touted the results retailers are seeing from them. Earlier this year, for example, Snapchat debuted a new lens that lets users view multiple items in one place. During the initial two weeks that it piloted the Snapchat catalog shopping lens, Ulta brought in $6 million in sales and saw more than 30 million product try-ons.
Research suggests that social commerce is predicted to grow in the coming years — a January report from Accenture predicted social commerce could grow to $1.2 trillion globally by 2025, up from $492 billion in 2021. But Snapchat faces competition from other social platforms that are also attracting younger users. An October report from Brightpearl.com noted that Facebook, WhatsApp, Instagram and YouTube were among the top places where Gen Z shoppers planned to shop for the holiday season, outside of traditional shopping methods.
As social commerce grows in popularity, some brands are mastering it better than others, but brands and retailers will have to grasp social commerce to capture Gen Z's attention in the future. A report from Sitecore, a digital experience management software firm, found that 64% of Gen Z shoppers said they will continue buying nearly all of their purchases online, but 38% of Gen Z respondents said they would give a brand just one chance to fix a mishap before trying out a competitor.
