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The retail industry has been among the top adopters of new and immersive technologies, such as augmented reality (AR), helping transform the customers’ journey into a new experience that combines efficiency with convenience. AR is among the technologies that have proven to be ideal for several industries, including the consumer electronics retail. The interactive nature of AR allows users to test out the features before buying, visualize how products fit into a space and even experiment with colors to match the home décor.
Research shows the conversion rate is 94% higher for brands when customers can virtually interact with products before buying. Additionally, AR addresses the problem of product returns, which can be up to five times higher in e-commerce than in brick-and-mortar store purchases and cause $150 billion in annual costs to retailers globally.
Snap Inc.’s internal data and independent research show that there’s a growing public interest in purchasing electronic products through Snapchat. A Snap Inc. survey of Saudi Arabia Snapchat users in August 2021 revealed that 79% of Snapchatters today are using AR to shop for household goods. Further breakdown of the different electronic subcategories shows interest in entertainment gadgets ranking first at 44%, work-related products at 39%, kitchen appliances at 35%, laundry appliances at 27% and grooming appliances at 19%.
Our data also highlights how diverse the "Snapchat generation" is. Although the platform is very popular and is often associated with Gen Z, its charm cuts across demographics; data shows that 71% of Snapchatters in KSA are parents.
The public wants to make the most of their online presence, with people on average using only nine apps per day out of the 80 apps they have installed on their phones. Therefore, it is no wonder that 36% of Snapchatters say social media is their primary source of information about consumer electronics. Snapchat, as a full-funnel channel, takes this even further. Not only can brands drive awareness, but Lenses can experientially take the user through the buying process up to closing the sale.
Snapchat has also emerged as the ultimate recommendation engine in the age of e-commerce. The study reveals that the most significant influencer on buying decisions is recommendations from family and friends. Conversely, research shows a whopping 69% of UAE of Snapchatters are more likely than non-Snapchatters to recommend products to friends and family, while 17% of Saudi Snapchatters are likely to do the same.
Augmented reality captures attention like no other platform. A study by AR platform Zappar shows that AR delivers twice the level of visual attention compared to non-AR equivalents. This leads to improved memories, enhanced experiences, and a more powerful response from consumers when looking at and purchasing a brand. Even if they don't buy during the initial visit, the increased engagement means would-be customers have developed a bond with your brand and product, making them more likely to purchase in the future.
That is why NESCAFÉ Dolce Gusto turned to Snapchat to build awareness and drive sales to launch their new coffee machine Genio S Plus. The AR Lens lets consumers build their own "coffee corner" directly in their homes. The campaign was a resounding success, reaching 6.2 million people in Saudi Arabia, UAE and Kuwait, driving brand awareness by 14 points versus 3 points in conventional campaigns, and delivering 62% more sales versus the initial forecast.
Ramadan marks the region's most important shopping season. But there's added excitement this year as Ramadan 2022 before the summer lull and at the tail end of Expo 2020 in the UAE and Saudi's Riyadh Season. With nearly a third (29%) of Snapchatters saying they are most likely to buy during Ramadan, investing in AR experiences this year is no longer a nice-to-have, but rather a must-have.
