What: With improved Augmented Reality and in-person shopping returning, retailers are rethinking their approach to smart mirrors.

Why it is important: AR mirrors have the potential to improve a multitude of challenges in physical retail as well as build engagement, inform purchase decisions, and be a welcome tool in building experiential retail.

A decade ago, smart mirrors were considered a key to the “Retail 3.0” revolution, however, the technology failed to take off.

With better technology and more openness from consumers, brands and retailers are now looking at smart mirrors again.

In new versions, digital content overlays reflections and can include anything from digital apparel and accessories to product details. The technology can track the body as well as detect and respond to specific movements, such as swiping the hand to change an outfit.

Many brands have already begun testing smart mirrors such as Nike, Men’s Warehouse, Tommy Hilfiger, Coach, and Mugler. Each brand has used the technology in unique and engaging ways from digital try-ons to games.

As an estimated 65% of apparel, footwear, and accessories purchases are made in-store and many potential challenges in physical shopping could be solved with an AR mirror.

Some of these solutions include the hesitation among consumers to physically try everything on, the opportunity to narrow product selections, increase product discovery, and visualize additional items that are out of stock. AR mirrors can also attract attention and increase time in store, which has been shown to increase basket size.

While only 12.4% of US adults are currently using AR for shopping, it is expected that AR will have 21.1 million more US users than VR and the gap will continue to widen.

However, challenges remain as the technology still isn’t able to accurately reflect size and fit in a way that can completely replace the fitting room. Therefore, the purpose for AR mirrors in fashion might be fun and to provide an experience.

This is why many brands are choosing to focus on affinity and engagement. For example, Nike’s gamified AR mirror experience to score store discounts was moved to the front of the store, which increased foot traffic. Another example is creating experiences that are otherwise impossible such as Mugler animating its fragrance with a special digital effect or Coach enabling passersby to its store window to try on its popular Tabby bag.

Retailers have the option to buy the technology outright at more than USD 100,000 or rent by the month which can be tens of thousands of dollars.

More features are also being introduced such as CRM integration, item suggestions, an option for customers to print out instant photos, and uploading a fuller catalogue of inventory.

Smart mirrors are getting a second look from fashion