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From L’Oréal and MAC, Cartier and Swarovski to Farfetch and Balenciaga, Augmented Reality Is Powering the Next Generation of Luxury Shopping Experiences.
Financials
08 August, 2025
Table of contents
From Snapchat filters to virtual catwalks and 3D skincare scans, augmented reality (AR) is no longer a futuristic novelty. In 2025, it is central to how fashion and beauty brands design, display, and deliver their products. Further supporting this trajectory, the global augmented reality market size was estimated at $83,65 billion in 2024 and is projected to reach $599,59 billion by 2030, growing at a CAGR of 37,9% from 2025 to 2030. The market growth is primarily driven by the growing technological advancements in AR hardware and software. These figures reflect the growing role of immersive technologies not only in marketing and retail, but also in core product development and service personalisation.
With 81% of Gen Z and Millennial consumers expecting AR to enhance their shopping experiences, brands that deliver seamless and immersive digital journeys are best positioned to capture this rising spending power. As these digitally native demographics become the primary drivers of retail growth, integrating AR becomes not just a novelty - but a competitive imperative.
These immersive technologies are reshaping consumer expectations, merging physical and digital shopping experiences, and enabling brands to personalise like never before. With leading fashion houses and cosmetics giants reporting increased conversions and decreased return rates, AR is proving essential to industry innovation.
Augmented reality (AR) is a form of immersive technology that overlays computer-generated images or information onto a user’s view of the real world - usually via smartphones, tablets, smart mirrors, or glasses. In retail, and particularly in fashion, beauty, and jewellery, AR is used to bridge the gap between physical and digital experiences.
Augmented reality in fashion is rapidly transforming the traditional shopping experience, both online and in-store. AR addresses one of fashion retail’s core challenges: enabling confident purchasing without physically trying the product.
Shopify (2021) found that brands using its AR/3D experience for virtual try-ons report up to 94% increase in conversion rates.
Per a January 2025 Imagine.io report, AR integration can lead to up to 40% reduction in product returns, especially for apparel and footwear.
Reydar’s 2025 retail insights report noted that over 61% of shoppers prefer retailers who offer AR experiences.
The same 2025 Imagine.io report stated that 72% of luxury fashion consumers in the UK are looking to use AR for their standard part of the digital shopping experience.
According to Single Grain’s 2024 article, AR can increase conversion rates by up to 189% when fully integrated strategically into the customer journey.
Shoppers use smartphone cameras or smart mirrors to overlay clothing, shoes, or accessories on their bodies in real-time.
Advanced AR tools simulate fabric drape, fit, and movement - creating a nearly tactile digital trial.
Retailers like Zara, Puma, and Farfetch deploy both WebAR and app-based AR modules.
Inventory efficiency: Reduces dependency on large-scale physical sampling or showrooming.
Omnichannel integration: Combines digital experiences with in-store mirrors or digital kiosks.
Sustainability: Minimises overproduction and logistics impact from high return rates.
Social engagement: Interactive storefronts and virtual fashion shows create viral moments.
Personalisation: AR combined with AI boosts satisfaction and repeat purchases by up to 35%.
Product development: AR and 3D tools help designers visualise and iterate faster, reducing sampling costs and time-to-market.
With the rise of Gen Z and Gen Alpha consumers - digital natives demanding immediacy and interactivity - fashion brands are embracing AR not just as a feature but as a strategic foundation for growth.
Augmented reality in beauty is enhancing how consumers discover, test, and personalise makeup and skincare. It empowers users to explore products with precision while enabling brands to automate customisation and visual content.
According to Focal’s 2025 research summary on virtual try-on (VTO) performance in e-commerce, AR makeup trials increase engagement by 200%+.
AR mirrors and apps reduce decision friction and improve product satisfaction.
AR + GenAI drives scalable hyper-personalisation.
AR-enhanced journeys boost acquisition, repeat purchase, and loyalty.
Automated content generation accelerates skin-tone-specific virtual testing.
Facial mapping aligns lipstick, blush, eyeshadow, and foundation in real-time.
Diagnostic tools like Meta Profiler assess skin attributes to generate tailored product matches.
WebAR and mobile platforms provide frictionless, personalised trials.
Customer confidence: Real-time results and satisfaction.
Reduced need for physical testers: Addresses hygiene and logistics post-COVID.
Scalable personalisation: GenAI and AR tailor product suggestions for individual users.
Campaign agility: Brands rapidly create localised, AI-powered visuals and tutorials.
With digitally native beauty buyers prioritising experimentation and precision, AR is becoming indispensable - enabling brands to blend technology with self-expression and service.
Augmented reality is transforming jewellery retail by allowing consumers to virtually try on rings, earrings, bracelets, and watches with precision and convenience - bridging the online-offline divide for high-value purchases.
The January 2025 Imagine.io report mentioned that retailers using AR virtual try-ons report a 40% decrease in return rates for high-value items like engagement rings and watches.
According to Shopify 2021 data cited by Netguru, products with AR/3D content show up to 94% higher conversion rates compared to those without.
Mirror 2024 Virtual Try-On article stated that Mobile-first shopping experiences dominate the market, with 73% of jewellery purchases now initiated on smartphones.
Gen Z values the experience and emotional resonance of luxury as strongly as product quality. Many prefer experiential shopping (like AR) over material-only luxury.
Cropink's 2025 Gen Z Marketing Statistics noted that 64% of Gen Z are willing to pay more (a “green premium”) for sustainable products, suggesting a broader acceptance of premium pricing for value‑adding features - like AR personalisation.
Several leading luxury jewellery brands - including Cartier, Swarovski, and Tiffany & Co. - now offer AR-based virtual try-on tools. While exact adoption rates among premium brands are not disclosed, industry reports highlight rapid growth in AR uptake - particularly within the watch and jewellery segment.
Customers use smartphone cameras or in-store AR mirrors to overlay jewellery items - such as rings or watches - onto their hands, ears, or wrists in real-time.
Advanced AR platforms adjust for lighting, angles, skin tone, and proportions, enabling realistic previews.
Research models like GlamTry and Shining Yourself show promising early results in photorealistic overlay of accessories using AI and diffusion-based alignment techniques.
Boosts conversion: Enhanced realism and confidence translate into fewer abandoned carts - especially for premium prices.
Reduces costly returns: Virtual previews ensure better fit and appearance expectations for custom or bespoke pieces.
Enables storytelling: Brands can animate gemstones, showcase craftsmanship, or simulate lighting reflections digitally.
Personal engagement: Customers “try on” multiple items in minutes, strengthening emotional affinity with the brand.
AR is not merely a tech add-on - it is a strategic pillar across fashion, beauty, and jewellery. Its integration across product discovery, trial, and purchase phases directly impacts key business metrics:
Increased Conversion: AR-enabled shopping experiences can increase conversion rates by up to 94% (Mirrar Virtual Try-On article , 2024), with virtual try-ons boosting purchase intent by 66% (Scoop Augmented Reality (AR), 2024).
Reduced Returns: Real-time fit and colour visualisation reduce uncertainty, leading to return rate reductions of 40% (Imagine.io report, 2025) especially in apparel and fine jewellery.
Hyper-Personalisation: Combining AR with GenAI enables dynamically tailored shopping journeys which can boost loyalty and repeat purchases by 45% (Nice Gen AI report, 2025).
Sustainability Gains: Brands reduce waste and emissions through lower product sampling, logistics, and physical prototyping. Digital garment and cosmetic testing significantly shrink environmental impact.
Mobile-First Alignment: With 73% of jewellery purchases (Mirrar Virtual Try-On article , 2024) and 81% of consumers use mobile to initiate fashion purchases (Fashiondive Mobile E-Commerce Article, 2023) AR ensures brands remain native to dominant user behaviour.
Stronger Emotional Engagement: Interactive, immersive storytelling deepens brand affinity. Campaigns using AR lenses or virtual influencers are more likely to be shared, remembered, and converted.
As digital and physical worlds continue to merge, AR provides the infrastructure for a retail experience that is immersive, data-driven, and consumer-centric.
In 2024, Farfetch partnered with Snapchat to roll out enhanced AR try-on lenses for luxury sneakers, including Prada and Off-White. Leveraging Snap’s upgraded Lens Studio and Camera Kit, users could realistically visualise how sneakers would look on their feet using just their smartphone camera. The campaign reflected a strategic shift in AR retail by enabling both visual accuracy and commerce integration - streamlining the path from try-on to checkout inside the Snapchat app.
In March 2024, Nike launched an interactive AR scavenger hunt across New York City to celebrate Air Max Day. The experience, accessible via QR codes and geo-triggered locations, allowed users to unlock virtual clues, discover exclusive sneaker drops, and share UGC (user-generated content) directly to social media. Using WebAR (no app download required), participants could interact with floating 3D sneaker models, snap photos, and virtually “collect” Air Max artefacts hidden around the city. This campaign reinforced Nike’s ability to merge digital and physical touchpoints, using AR not only for try-ons but for storytelling, gamification, and community engagement.
In June 2023, Valentino partnered with Wanna, Farfetch’s AR and 3D visualisation platform, to pilot an immersive virtual try-on feature for its “Urban Flows” capsule collection. Designed for mobile e-commerce, the AR tool enabled users to view hyper-realistic overlays of garments directly on their body using only a smartphone camera. Unlike typical filter-based effects, Wanna’s technology delivered 3D-fabric simulations with realistic texture, fold dynamics, and movement, closely mimicking how items behave in real life.
Balenciaga partnered with Apple to showcase its Spring 2025 collection through the Vision Pro headset, offering a fully immersive XR fashion show experience. The interactive lookbook and spatial presentation allowed users to explore garments in a 3D environment, enhancing the sense of texture, form, and silhouette beyond traditional runway viewing. The partnership positions XR fashion shows as a viable alternative to physical presentations - especially for global luxury audiences.
Tommy Hilfiger launched 'FashionVerse', an AI-driven mobile fashion game featuring hyper-realistic 3D avatars styled in digital replicas of Hilfiger garments. Geared toward Gen Z and Millennial users, the game includes styling challenges, competitions, and unlockable rewards. Hilfiger stated that “AI avatar realism has reached a point where representation and creativity can scale together.” The initiative merges fashion gamification with AR/3D tech and is seen as a forward step in youth brand engagement and community-led marketing.
Emperia has previously developed virtual environments for several leading luxury brands. Notable names include Dior, LVMH, Bulgari, Harrods, Burberry, Ralph Lauren, Bloomingdale’s and Sotheby’s. Emperia extended its AR/VR platform capabilities beyond luxury brands to include digital creators and fashion studios. This evolution enables independent labels to create virtual flagship environments with e-commerce integration, previously accessible only to top-tier brands.
These cases show that AR in fashion is no longer just experiential; it’s performance-driven, ROI-tracked, and central to how consumers discover, consider, and convert.
By early 2024, L'Oréal Paris reported a 150% increase in virtual try-ons via its ModiFace-powered platforms. AR users demonstrated significantly higher purchase intent - with conversion rates up to 30% greater compared to non-AR shoppers. This surge reflects AR’s power in boosting user confidence and closing the gap between browsing and buying.
Sephora Southeast Asia expanded its Virtual Artist AR tool across both mobile and web, powered by PulpoAR. Brand adoption campaigns - leveraging push messaging and in-app video tutorials - increased feature adoption by 28%, while overall VA traffic rose by 48%. Shoppers using the tool were 35% more likely to purchase, with 25% more items added to cart versus non-users.
In May 2024, L'Oréal Paris partnered with Snapchat and Walmart to deliver AR try-on directly at retail using QR-coded hair dye packaging. Shoppers could preview different hair colours virtually in-store via WebAR - merging digital convenience with physical retail accessibility.
Sephora implemented ModiFace-based AR mirrors in flagship stores, allowing customers to virtually apply makeup without handling testers. Case studies show a 35% rise in online conversion for items tried via AR and roughly 30% increase in category sales in-store.
Revieve rolled out generative AI-powered skincare diagnostic tools across partners like No7 Beauty, RoC Skincare, and AS Watson brands. These tools, blending facial analysis with AR overlays, allowed customers to visualise product effects and receive personalised routines - boosting engagement and repeat purchases in early 2024 deployments.
Shiseido’s TeleBeauty AR mirror - developed with FFFACE.ME and Microsoft - launched in select markets in early 2025. This in-store AR system overlays virtual lipstick, blush, and eyeliner with high realism, enabling consumers to virtually test looks before purchasing - reducing hygiene concerns and boosting engagement.
Shiseido expanded its “Twin Avatar” AR mirror into Japan and Hong Kong between 2023 and 2025. The mirror scans facial details to create an AI-powered avatar that predicts skin conditions over time and helps customers visualise skincare impact in real-time. This innovation elevated the brand’s in-store personalisation and positioned it as a pioneer in predictive AR dermatology.
Neutrogena’s Skin360 tool, powered by YouCam AR, uses smartphone cameras to assess hydration levels, pore size, and fine lines. Linked to Johnson & Johnson’s skincare portfolio, the app provides routine recommendations with high accuracy. The 2023-2024 rollout improved product match rates and reduced return requests across online orders.
In 2024, MAC Cosmetics collaborated with LanguageWire to launch multilingual, AI-driven virtual try-ons for lipsticks and face products. The integration enabled seamless localisation into 27 languages and improved AR performance across Southeast Asia, LATAM, and the Middle East.
Luxury icon Cartier launched an AR try-on solution enabling users to virtually try on watches and jewellery using smartphone cameras. The immersive AR tool reflects Cartier’s premium retail experience digitally, improving customer confidence with high touchpoints for online shoppers. The impact is elevated engagement and richer customer interaction through refined visual realism.
Swarovski implemented AR jewellery try-on features that capture real-time reflections and light refractions on crystal products. Shoppers can preview how rings or necklaces sparkle in different lighting conditions, closely mirroring real-life wear. The impact is higher online satisfaction, reduced returns, and more time spent per session.
Tiffany & Co. integrated AR into its mobile app to allow users to virtually try on engagement rings and bracelets. This experience simplifies online selection by offering interactive, 3D views of high-value jewellery pieces in context. The impact is increased user confidence and fewer hesitations in luxury purchases.
High-end watchmakers like Ulysse Nardin and Glashütte Original adopted mobile AR try-on tools that let consumers preview watches on their wrist via smartphone camera. These tools rely on accurate scale modelling and dynamic lighting simulation to reflect realism. The impact is minimal hardware requirement, high realism, and increased watch purchase assurance.
Bulgari launched an immersive 3D and AR visual experience on its website, enabling users to explore iconic pieces like the Serpenti collection in full 360°. This feature offers zoom, rotation, and high-detail overlay, replicating in-store richness in a digital format.
In 2025, augmented reality has moved from experimental retail technology to a core driver of transformation across fashion, beauty, and jewellery. From AR mirrors in Sephora stores to Valentino’s 3D garment simulations and Bulgari’s immersive product visualisations, the use of AR has matured into a strategic differentiator.
This evolution is not just about visual novelty. The integration of AR with GenAI, mobile-first commerce, and personalised diagnostics has delivered measurable gains:
Conversion uplift of up to 94% through virtual try-ons.
Return rate reductions by 35-40%, especially in high-touch categories like apparel and jewellery.
Stronger consumer trust and satisfaction, powered by accurate visualisation and hyper-personalised journeys.
Faster product development and sampling cycles, lowering costs and environmental impact.
AR is particularly effective among Gen Z and Millennial consumers - 81% of whom expect such technologies to enhance their shopping experience. As these demographics become the dominant force in global retail spending, brands that fail to adopt immersive and frictionless experiences risk falling behind.
Looking forward, AR is poised to go beyond visual testing into virtual storefronts, AI stylists, digital product passports, and fully immersive brand universes. What began as a tool for virtual lipstick previews or 3D handbags is now an ecosystem-defining capability - reconfiguring how brands engage, convert, and retain their audiences.
For fashion, beauty, and jewellery players navigating a digital-first landscape, AR is no longer optional. It is infrastructure.
Cover Image: Vogue Business, WWD, AdIndex.ru and The Business of Fashion,