How Face AR drives sales in eCommerce
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- Stay aware of upcoming AR shopping trends - Understand the state of Augmented Commerce in 2019 - Learn how Face AR addresses challenges and drives sales - Explore Face AR software possibilities in Try-On apps and AR Store Mirrors - Check the best Face AR examples in eCommerce and retail Need a virtual try-on app or software? Visit https://www.banuba.com/ Augmented Reality (AR) product experiences are heading for the mainstream. Leading retailers are successfully using Face AR technology to give consumers innovative ways to try on and experience products using cameras. How do brands capitalize on Face AR to drive sales, reduce product returns and engage with younger consumers? At Banuba we explore today's possibilities for Face AR, its future and the implications for e-commerce and retail. We also include groundbreaking case studies in Face AR commerce, with examples of our approach and high standards.
![Augmented Reality (AR) product experiences are heading for the mainstream. Leading
retailers are successfully using Face AR technology to give consumers innovative ways to
try on and experience products using cameras.
Consumers’ expectations are growing fast too. Gartner predicts that 100 million
consumers will be using augmented reality for shopping, in-store and online, by 2020 [1].
Yet despite all the excitement, few people are aware of what ‘Face AR’ and ‘Augmented
Reality Commerce’ mean.
What is Face AR technology? How do brands capitalize on Face AR to drive sales, reduce
product returns and engage with younger consumers?
This paper explores today's possibilities for Face AR , its future and the implications for
e-commerce and retail. We also include groundbreaking case studies in Face AR
commerce, with examples of our approach and high standards.
About this paper](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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How Face AR drives sales in eCommerce
- 1. Face AR for Retail Reinvent Your Customer Shopping Experience
- 2. Augmented Reality (AR) product experiences are heading for the mainstream. Leading retailers are successfully using Face AR technology to give consumers innovative ways to try on and experience products using cameras. Consumers’ expectations are growing fast too. Gartner predicts that 100 million consumers will be using augmented reality for shopping, in-store and online, by 2020 [1]. Yet despite all the excitement, few people are aware of what ‘Face AR’ and ‘Augmented Reality Commerce’ mean. What is Face AR technology? How do brands capitalize on Face AR to drive sales, reduce product returns and engage with younger consumers? This paper explores today's possibilities for Face AR , its future and the implications for e-commerce and retail. We also include groundbreaking case studies in Face AR commerce, with examples of our approach and high standards. About this paper
- 4. Future AR shopping trends Mary Meeker's report on Digital trends 2019 outlines images and visual content as the prime means of communication among people today [2]. Over 50 per cent of Twitter impressions now include posts with images, video or other visual content where it used to be text-only. 55 per cent of consumers have bought something online after discovering it on social media [3]. Today's trends shape tomorrow's standards. In 2019 we are seeing some interesting trends that may help us get a glimpse of the future consumer and the role of AR. Brands will continue to capitalise on social media and visual content generated by users. Technology and camera advances will encourage a surge in virtual product experiences. 1. Consumer demand for visual content increases
- 5. With rapid adoption of AR, cameras will become the key touchpoint for every part of shopping. Self-expression, self-identity and community building will remain the most important drivers of AR camera apps for shopping, fashion and self-care. Snapchat and Facebook AR filters and ads make discovering products fun and non-intrusive, compared with other advertising formats. Virtual try-on apps, reached on mobile or website, will make product choice a smooth process. Smart interactive mirrors will add engagement and help to drive audience in-store. 2. The camera as the customer touchpoint
- 6. 91 per cent of consumers prefer brands which provide personalized offers and recommendations [4]. In the future of retail, shopping can be much more personalized, smooth and tailored to your individual needs and characteristics. The AI-empowered tools extracting data f rom a customer's face will improve content targeting and product recommendations helping consumers to communicate with the brand personally. In cosmetics and skincare, AI beauty advisors will track customers’ conditions or progress making them stick with the brand. 3. Personalisation is King
- 7. As we look ahead, building social currency may be the most crucial investment retailers can make. The extent to which people share a brand or information about it as part of their everyday lives will define the success of organic marketing. Augmented reality allows the conversation between brands and consumers to unfold naturally. It won’t be about buzz but meaningful experiences around the brand – ones that connect emotionally and turn the audience into advocates. 4. Social currency in the 21st century
- 8. The Trend Hunter reports that adolescent activism is growing across all aspects of our life [5]. Gen Z takes an active part in sharing their views, and brands can’t stand aside. With so much information targeted at consumers every day, brands will need to go for AR marketing campaigns with a meaningful goal, a story that makes a difference, to break through the noise and deliver their messages effectively. 5. Brands going for Gen Z with AR storytelling
- 9. Over the past 10 years, technology has dramatically simplified how we discover, experience and buy things. When shopping online, we once had to rely on 2D images and text descriptions. Then we moved on to video reviews and influencer marketing, where people experienced products in real time. Now we're entering the era of Augmented Commerce (aCommerce) where we can experience products ourselves virtually without leaving home – via the camera. Website eCommerce 2010 Mobile user interface (UI) mCommerce 2016 Camera aCommerce 2018 Tough competition for top rankings in Google Search Costly ads and marketing Non contextual product representation with 2D, text, video content In-app pushes based on user location Smaller screens make it hard to visualize products Complex navigation among extensive product choice limits discovery Personalized selfie-powered product discovery High level of engagement and novelty with 3D, AR content Real-time product visualization & AI based recommendations Virality through user-generated content sharing on social media Augmented commerce today
- 10. Augmented Commerce or aCommerce is buying and selling goods using augmented reality to visualise them virtually in the real-world environment before purchase. In the context of aCommerce, Face AR technology allows products to be visualised with informative graphical overlays and demonstrations. Consumers can virtually try on in 3D products such as makeup, glasses, accessories, jewellery, headwear and hair colouring. Face AR technology shifts attention from a simple representation of the product to a personal experience of it. Too many clicks result in fewer conversions, and brands have been focusing on providing the least amount of steps possible during the online shopping experience. Face AR simplifies shopping to two steps – trying on products virtually, then buying those that suit you best. Unlike with eCommerce and mCommerce, users can browse hundreds of items without getting bored. “AR commerce can work for anything that requires the user to build their understanding and opinion of it prior to holding its physical manifestation in their hands.” — Gracie Page, innovation lead at VMLY&R.
- 11. The shopping path has changed. of consumers would be more likely to shop with a retailer using AR technology.48% of retailers plan to use augmented reality within three years. Given the fast-changing market trends and many brands adopting AR, these numbers are likely to increase. 32% users would rather interact with AR content than watch a 30-second video [6].78% Why now? AR content is 2.6 times more engaging than static 2D imagery and 2.1 times more engaging than video [7].
- 12. The global success of Snapchat and now TikTok have shown a tremendous interest in AR applications among people. What’s more important, it has also shown the power of the AR camera apps to engage people and immerse them into other realities. The shopping sector is one of the first to transform AR f rom a gimmick into something genuinely useful. AR makes the buyer’s experience much more captivating, enabling unrivaled "one-to-one" interaction with sellers through the camera. It becomes far easier to discover products, bringing novelty and convenience to shopping, directly tackling pain points for both consumers and brands. Lack of personalization, product returns, and the problems of attracting younger ‘Generation Z’ consumers are just some of the challenges retailers can meet using Face AR technology. Given too many products to choose f rom, consumers experience difficulties navigating a retailer’s site or store and finding items that would match them. They are likely to give up or leave without purchase at the peak of their f rustration. Consumers want shopping to be personalized every time they encounter a brand – on the web, mobile and in-store. Personalisation 80 per cent of consumers are more likely to buy f rom a brand offering a personalized experience. Only 2 per cent of marketers report that their company has personalized all their channels [8]. The rise of Face AR Commerce
- 13. Employing computer vision and deep learning algorithms, the Face AR technology enables AR experiences that are not only built around the customer but personalized for his or her individual needs. By analyzing facial characteristics, Face AR algorithms can find products that are the best fit for a customer and showcase them in real-time. The intuitive interfaces allow quicker navigation, making it easier to find the right product. Consumers can browse more products via swipes on mobile apps and in-store mirrors or instantly launch the web try-on feature. "It can be overwhelming coming into our stores or shopping online, but virtual try-on makes it easy to help you find your favorite shade and save you time." — Mary Beth Laughton, EVP of Omni Retail at Sephora “
- 14. thewrongsize,colourormodel 1 theproductdoesn'tmatchitsdescription 2 Customersmakemistakesbecausetheycan’tphysicallysenseaproduct,tryitonorsee howitlooksonthem. Returnsdrainbudgetsanddamagebrandreputationsbuttheycanbeeasilyreduced with‘trybeforeyoubuy’approach. IntheUSalone,Statistaestimatesreturndeliverieswill cost$550billionby2020,75.2percentmorethanfour yearsearlier[9]. Productreturns Amongthetopreasonswhyconsumersreturnproductsare “Attheendofthedaytheonlybarrier tobuyingaproductiswondering whatitwilllooklike”. —LubomiraRochet,ChiefDigitalOfficeratL’Oréal
- 15. Market research puts ‘appeal to millennials’ and ‘strong digital platforms’ among the main reasons for the success of global beauty brands [10]. Gen Z represents up to $143 billion in buying power and in a few years will be the largest consumer group in the US [11]. Their trendsetting abilities cannot be ignored – how teenagers interact with products and services affects the spending of their families and friends to the tune of $600 billion a year. Traditional marketing strategies fall flat with Gen Z. They have a shorter attention span than other generations. Raised in the smartphones and social networking era, they shop, communicate and live online. The novelty of AR technology, its accessibility on mobile and the selfie-focused camera experience lets brands hold the attention of “digitally native” consumers longer and convert them at a higher rate. By letting consumers take and share selfies with the product, brands can capitalize on the long-term virality of user-generated content and native advertising without extra marketing costs. Attracting Gen Z
- 16. “Gen Z are perhaps the most brand-critical, bullshit-repellent, questioning group around and will call out any behavior they dislike on social media. (Little wonder brands are quaking in their boots.)” — Lucie Greene, Worldwide Director of the Innovation Group
- 17. Consumers may not know what they want and how they want it, so brands must think ahead. The biggest challenge? "If what you're building doesn't make their shopping experience faster or easier or more fun, it's probably not worth the investment." — Brian Solis, an analyst at Altimeter “
- 18. Banuba’s Face AR augmented reality platform is a set of software development kits (SDK) and technologies that let brands build and deploy AR try-on experiences and applications for web, mobile and in-store. With Face AR technology, consumers can visualise products and find the best fit using the 'try before you buy' experience with cameras. What is Banuba’s Face AR Platform? Provides real-time virtual product experience that feels real. Requires no prior photo upload or video recording needed – one-tap try-on. Allows for realistic 3D product representation of colours and shapes. Reaches younger audiences with immersive experiences Advertises products with branded 3D masks and AR filters Increases brand engagement Harnesses virality as user content is shared on social networks Drives traffic organically without expensive adverts Can be experienced on mobile, web and in-store. • • • • • • • • • Face AR key features and benefits
- 19. Brands build mobile and web apps from scratch or integrate Face AR into their existing apps using our suite of development tools. This lets them introduce real-time AR shopping for customers. How Face AR platform works AR Experience Software suite Virtual product try-on based on real-time face detection and tracking Beauty try-on and face modification experiences based on face segmentation and tracking AI product recommendations based on analysis of facial characteristics like skin, hair colour, age and gender Face Filters SDK AR Beauty SDK Face Analytics SDK (demo)
- 20. Try-on apps & experiences enabled with Face AR Customers can find the perfect frames by trying them on using real-time AR. Eyewear and sunglasses of any shape and color Real-life lighting and shadowing effect Size adjusted based on the device distance Measure pupil distance for eye prescription • • • • Glasses & sunglasses Showcase beauty products in 3D with mobile apps, web AR plugins or in-store beauty mirrors. Lipstick, eyelashes, eyeshadows, eyeliner and foundation, hair and eye recolor Automatic fitting with precise face segmentation Natural beautification for a better user experience All colors and shades adjusted for lighting Real-time or photo post-processing Makeup recommendation based on skin and hair color detection • • • • • • Makeup
- 21. Demonstrate different hair colors to help customers find the perfect style. Magic-mirror hair recoloring All-round color palette from natural to lurid Hairstyle detection Existing hair color detection to predict results of recoloring. • • • • Hair color Visualize how small items will look on a user's face. Earings, accessories, face jewels and piercing try-on Precise item fitting Physics support (items move naturally when the user shakes or inclines the head) Size adjustment – users can move close to the camera to see the item in detail • • • • Jewellery
- 22. Let consumers wear accessories virtually, shop with AR and share on social media. 3D items applied automatically Hats, headbands, helmets, scarfs Any form, shape, color and design Virtual items throw shadows and cover the face • • • • Headwear & accessories Try on your smartphone
- 23. How Face AR Addresses Challenges and Drives Sales Sales increase Brands actively embracing augmented reality technology have already seen a measurable positive affect. Face AR increases the time consumers spend with a brand – on mobile and online – and spark impromptu purchases. Lack of personalization The intuitive AR experience enabled by the camera brings unrivaled personalization for customers. The product recommendation can be tailored using AI algorithms and face analytics data like age, gender, skin and hair color, to guide product choice. Gen Z engagement Gen Zs prefer visual media and easy-to-perceive content. Face AR allows many varied AR scenarios – from realistic try-ons to captivating AR ad filters, which keep younger audiences engaged. Costly marketing The Face AR platform inspires users to generate and share their own content, allowing brands to reach new audiences organically. Competition The novel virtual product experiences enabled with the Face AR platform help brands to stand out and stay competitive.
- 24. Omnichannel Face AR experiences right where consumers are Smartphones have become the go-to channel for online shopping. 49 per cent of consumers use mobile phones for shopping online and in-store. Mobile augmented reality is estimated to top 2.5 billion installed base and $70 billion to $75 billion revenue by 2023 [12]. So brands have an amazing opportunity to build positive brand sentiment by reaching consumers with unique, compelling and targeted AR experiences on mobile. Face AR platform allows for real-time try-on experience that works like a magic mirror. Users can try on products through the mobile camera, find their perfect color match or get it recommended with AI algorithms based on their facial characteristics. Mobile Most mobile AR experiences require smartphone applications. For consumers, this involves downloading an app and allowing access to personal data. This creates a significant barrier to distribution and raises concerns over privacy. Face AR for the web lets AR content be viewed and shared through mobile and desktop web browsers, allowing for a frictionless shopping experience. Instead of downloading a new app, users can simply click on a link to open a page in their browser or press the “Try On” button on the product page, activate their web camera and try on items virtually. WebAR
- 25. In apparel, clothing, accessories and cosmetics, many brands have successfully allowed customers to virtually try on products. AR fitting rooms and mirrors can increase sales by taking an omnichannel approach. The Face AR technology not only saves the time customers spend going to fitting rooms but lets them browse many more items when in the store. Using analytics, smart mirrors become non-intrusive consultants, advising on the most suitable cosmetics, skincare products, hair color and even fashion and clothing. Virtual product testing keeps shoppers engaged, adding fun, novelty and convenience, so retailers stand out from their competitors. In-store
- 26. FaceARusecasesinretail &eCommerce 1.Trybeforeyoubuy Virtuallytry-onexperiencetohelp visualizeproductsbeforepurchase 2.Howto Tipsthatguideusersonapplying products,creatingmakeuplooksorself care. 3.Storytelling Tellyourbrand’sstoriesbybringing objectstolifethroughthephone camera. 4.Visualisesmallitems Userscanmoveclosertothecamerato seehowsmallproductssuchasjewelry orglasses,lookonthem. 5.ARadcampaigns Advertisenewproductsbeforetheygo livewithtrue-to-lifeARfilters. 6.Brandedfacefilters AddviralitywithengagingARfacefilters featuringyourbrand. 7.In-storemirrors Allowhygienictryingoninyourstore, advertiseproductsthatareinother stores. 8.Photobooths BringARadandtry-onexperienceand allowselfie-takingandsharingto increasebrandawareness. 9.WebAR Thetry-onbuttononyourproductpage. Usersneedjustawebcamera. 10.Mobiletry-on Letsconsumersusetheircameraasa mirrortotryonproductsathome. 11.AI recommendationengine Analyseusers' facialcharacteristicsto recommendthebestproducts. 12.Productshazam Scanproductsandmakeuplooks,try themwithacameraanddiscoverwhere tobuythem. 13.Styleassistant Helpyourconsumerstofindtheperfect outlookormostsuitableproductswitha pre-setlook.
- 27. What makes the Face AR try-on apps truly magic? The first buzz around AR try-on apps emerged in 2016. The news feeds bet big on augmented reality in shopping and the idea of wearing products virtually. However, most early try-on applications failed to meet the expectations, because of immature technology and ineffective implementation. Manual facial feature adjustment, poor UI and performance, especially on Android, and unrealistic product representation were the main complaints. The result? Consumer disappointment, waste of budget and no ROI. Magic mirror vs manual photo editing
- 28. Consumer feedback The buzz around early AR applications
- 29. Unlike the early try-on apps, Face AR technology allows a real-time f rictionless AR experience that can be accessed on a wide range of devices, not only top-level iPhones. 3D face tracking Three core technologies underlie Face AR: Face segmentation 3D rendering engine Face AR tech explained
- 30. Most face-tracking solutions are based on landmark tracking. Landmarks map key features such as eyes, eyebrows, nose and mouth. The more landmarks are detected, the more feature-rich AR experiences can be overlayed onto the face. However, landmark tracking requires significant computing power which is why most early AR apps fail to provide quality AR camera experiences on mobile devices with limited CPU, memory, and power – the so-called "constrained devices". Face AR uses technology that recognises 37 characteristics represented as 3D models of the face. Instead of wasting capacity for landmark alignment and tracking, we have trained the technology to “see” the face in 3D. We have selected the optimal number and set of face morphs to extract all the data needed and robustly track the face in the camera. This includes 30 models with different facial expressions and anthropometry plus 7 parameters that describe the position of the face in a photo (head tilts and face angles). This innovative approach provides much faster performance and better accuracy – the algorithms need to process only 37 numbers. The significant capacity saving and technology optimisation let us achieve the best 3D mobile face tracking on the market. 3D face tracking explained
- 31. We run algorithms several times within one frame to process the noises that result in jitter-free user experience without lag. Less battery drain and device heating due to the saved capacity. Optimised specifically for mobile to function as well on iPhone-Xs and $100-Androids, allows brands and developers to maximise their audience. Device support starts with iPhone 5S, Android 5.0 with Camera 2 API and Open GL ES 3.0. We cover 97 per cent of all iOS devices and 80 per cent of all Android ones. Supports low lighting, 360-degree device rotation and up to 70 per cent occlusion that results in a seamless experience. Users can wear glasses, have poor lighting, move and incline their heads while experiencing Face AR apps. We use balanced datasets that include faces of different ages, genders and nationalities. Our Face AR experiences work well for all types of skin colour and facial features. How we achieve industry-best face tracking • • • • • • • As more and more apps build on real-time augmented reality, consumers see selfie uploading and facial feature adjustment in photos as outdated. The facial segmentation on our face-tracking engine, lets Face AR technology detect the right areas, such as like lips, hair or eyebrows, to add the virtual product automatically with high accuracy. Face segmentation neural networks
- 32. Unless the product looks and feels realistic, the virtual product experience won’t satisfy customers. Delivering high-quality AR content for virtual try-on apps is one of the most important and difficult tasks for retailers. We’ve developed the most powerful 3D rendering engine to allow life-like product experiences to happen virtually. It can not only transfer realistic colours but adjust the virtual item’s look for lighting and even behaviour. Virtual items change size based on the user's position in the camera, throw shadows and support physics. When a user bends their head the earrings move too. When your raise your head, the sunglasses mirror the light just like real glasses. Advanced 3D renderer capabilities Graphical technologies AR experience 3D modelling & animation Image-based lighting Physically based rendering Animation billboards Morphing Physics High dynamic range imaging Video textures Multisample anti-aliasing Sprite animation LUT post-processing 3D items can be viewed f rom different angles Real-world light capture Life-like object behavior Real-time size adjustment Items’ shadowing with head-down tilts Mirroring and bleak with head-up tilts Transfer all possible color grades, changing the hue, saturation and brightness, adding contrast or making certain colors ‘pop’. • • • • • • • • • • • • • • • • • •
- 33. In March 2018 L’Oréal acquired AR company ModiFace, using its software to power its 34 brands with beauty AR experience. Successful use cases “We really believe that the future of beauty will be digitalised and tech beauty and in this area, we have been really the first to start and we are ahead of the game and for us, it is priority number one.” Jean-Paul Agon, CEO and Chairman at L'Oréal. “ Deliverables Makeup Genius app to apply preset looks or try specific L'Oreal products in different shades. Style My Hair mobile app which lets users try on different hairstyles. AR Makeup Try-on app for NYX Cosmetics, a subsidiary of L'Oréal. Virtual skin assessment platform deployed on L’Oréal’s Vichy web and mobile sites. • • • • • Results Downloaded over 35 million times Become the №1 lifestyle app in 47 countries. 260 million virtual product trials that led to conversions increase Engagement time on that site doubled Conversion rates tripled ↑ ↑ ↑ ↑ ↑
- 34. Sephora worked with ModiFace on its first Virtual Artist mobile app that made a revolution in 2016. Olay noticed that a third of women couldn't what they needed when browsing the shelves and did not make a purchase. They rolled out an AI-powered skin advisor platform to help women understand their skin type and choose the right products. “Every digital product or tool or experience that we introduce is done to make shopping for our consumer more fun and more efficient–to help engage her, educate her, and entertain her." Mary Beth Laughton, Sephora. “ Results 200 million shades tried on Over 8.5 million visits to the feature Wear lipstick and eyeshadows right in the app Virtual tutorials on how to contour, apply highlighter and create eyeliner looks on your face. ↑ ↑ ↑ ↑ Results Reduced the bounce rate for online visitors by one third and increased average basket size 2x in conversion rate 5-min session length Improved involvement of younger demographic Used over 1.2 million times 5,000 to 7,000 users every day ↑ ↑ ↑ ↑ ↑ ↑
- 35. Followed by a successful test of lip products, the cosmetics brand Macy’s plans to extend its mobile virtual try-on service to more products. Virtual Try-On Mirrors in its physical stores across the country. “2/3 of online traffic and half of digital sales come f rom mobile devices, making its app users the "most loyal customer," Jill Ramsey, Chief Digital Officer at Macy's. “ Results Expects a 31 per cent sales increase due to AR-powered in-store experience. YouTube’s AR beauty try-on campaign launched in 2019. According to prior testing, 30 per cent of viewers launched the AR try-on feature in the YouTube iOS app. The average session length has reached 80 seconds. ↑ ↑ ↑ The virtual jewellery try-on app brought a significant boost in sales specifically among millennials. Results n 2018, the 40 per cent of CaratLane’s business was coming f rom the AR-powered app. ↑
- 36. About Banuba Banuba is the camera company on a mission to empower creative expression and visual communication in people through AR apps built with our Face AR platform. Our Face AR platform combines several SDKs that brands and developers use to build the most immersive mobile, web and real-world AR experiences. Face Filters, Beautification, Avatar, and Analytics SDK are all based on our innovative face tracking technology that functions robustly both on iPhone-Xs and $100-Androids, with low lighting, wide angles and up to 70 per cent occlusion. The result? The magic-mirror experience that fascinates everyone. Brands and developers can benefit from our Face AR platform, developing camera-first apps that innovatively engage users and clients, inspire easy content creation and help increase audiences organically. We use artificial intelligence and deep learning to teach today’s camera see and sense the world the way humans do. And for the future? We look towards the 21st-century camera that will sees things beyond human vision. 100+ amazing people. Developers, data scientists, creative minds and visionary leads – we're techno-optimists who believe in a better, AR-fueled tomorrow, one that we make happen today. Team
- 37. How to get in contact with us We are always looking for new challenges, points of view and people to collaborate with. If you’re a brand, developer or think you’d be a right fit for our team then do not hesitate to contact us on the following channels: Email info@banuba.com Facebook facebook.com/banubadevelopment/ LinkedIn linkedin.com/company/banuba-development/ Twitter twitter.com/BanubaFaceAR YouTube youtube.com/channel/UCnXZnhDdFv-1VC47PCY9Ptw