Augmented reality (AR) could play a major role in influencing the key buying decisions of Saudi shoppers.
Eighty-four per cent of those surveyed by Snap Inc. in association with PwC Middle East and Retail Leaders Circle are interested in testing out products with the visual technology before buying.
Snap Inc’s regional business lead for the Saudi Arabian market, Abdulla Alhammadi, said: “AR is already transforming the industry and is slated to metamorphose every shopper’s journey in the near future. Today, as we ponder upon the future of retail, it’s time to be agile and adapt wholeheartedly to the latest in commerce.”
However, the report said that 94 per cent of the brands still consider AR solely for entertainment purposes.
Noteworthy, 47 per cent of tech-adept shoppers in Saudi Arabia resort to AR to decide on their purchases.
Snap Inc. estimates that approximately 75 per cent of people around the world, including almost all smartphone owners, will become frequent AR users by 2025.
Snap Inc. also found that interacting with products through AR leads to a 94 per cent higher conversion rate. 66 per cent of buyers are less likely to return an item they bought via AR, and 80 per cent feel more confident in their purchases after using the technology.
Hussein Freijeh, General Manager in Mena, Snap Inc said: “Augmented reality helps improve our lives, widens our perspective, and allows us to see the world in a unique way. Snap Inc. has been working for years on developing AR further as it has become an effective tool and a representation of the future in a short time.”
The majority of Gen Z and Millennials in Saudi Arabia are expected to frequently use AR by 2025, the study claims.
The report also noted that 73 per cent of Saudi consumers who use AR when shopping claim it prompts them to make a purchase. Complementary to this, the report forecasts that the country will witness a 25 per cent increase in the proportion of Gen Z shoppers who use AR before buying by 2025.
Equally important, 86 per cent of shoppers are willing to pay extra for enhanced experiences or custom-made items.
Partner at deals strategy and operations at PwC Middle East, Roy Hintze, said: “Our latest paper shows that consumers’ shopping journeys are becoming more drawn out as they look for promotions and reduced prices. However, they are willing to a great extent to pay more for local products to support their local economies and to get convenient and more bespoke services.”
