Key Takeaways:
- Zalando is set to launch its virtual try-on feature for all customers in 2026, after seeing a 40% reduction in returns during testing.
- Generative AI has improved the accuracy and photorealism of virtual try-on technology, making it more effective at reducing returns and increasing sales.
- Virtual try-on startups, such as Doji and Zelig, are using AI-powered technology to create more realistic and personalized try-on experiences.
- Software giants, such as Google, are also investing in virtual try-on technology, with features like 3D imagery and video try-on.
- The future of virtual try-on lies in making it a daily habit for consumers, with startups exploring new ways to integrate the technology into online shopping experiences.
Introduction to Virtual Try-On
Virtual try-on technology has been around for several years, but it’s only recently that it has become a major focus for online retailers. Zalando, a German e-tailer, has been experimenting with virtual try-on since 2018, but it’s only with the arrival of open-sourced large language models (LLMs) that the technology has become more accurate and effective. With LLMs, Zalando has been able to improve its image-generation capabilities, allowing customers to see how clothes would look on them in a more realistic way. The company has seen a 40% reduction in returns during testing and is set to launch its virtual try-on feature for all customers in 2026.
The Impact of Generative AI
Generative AI has been a game-changer for virtual try-on technology. It has enabled companies to create more photorealistic and personalized try-on experiences, allowing customers to see how clothes would look on them in a more accurate way. This has been particularly effective in reducing returns, as customers can get a better sense of how clothes will fit and look on them before making a purchase. Google, for example, has been expanding its virtual try-on feature, allowing users to upload photos of themselves to see how they’d look in different clothes. The company has seen a significant increase in user engagement, with virtual try-on becoming the number one Google Shopping tool shared on social media.
The Future of Virtual Try-On
Despite the progress made in virtual try-on technology, there is still a way to go before mass adoption. Currently, only 1.4% of adults aged 18-65 regularly use some form of virtual try-on. To change this, software startups are working on improving the speed and accuracy of image generation, as well as developing advanced features like 3D imagery and video try-on. They are also making the technology more shareable on social media, to convince a larger swath of consumers that virtual try-on is fun and easy to use. For example, Doji, a virtual try-on startup, allows users to shuffle outfits and receive style and product recommendations, making the technology more of a styling tool than a return solution.
Virtual Try-On as a Styling Tool
Virtual try-on is no longer just about reducing returns, but also about creating a more engaging and personalized shopping experience. Startups like Doji and Stiled are reframing virtual try-on as a styling tool, allowing users to explore different outfits and receive recommendations. This approach has been shown to increase user engagement and drive sales, as customers are more likely to make a purchase when they feel emotionally invested in the product. By making virtual try-on a daily habit, startups hope to convince brands to sign on as partners and integrate the technology into their online shopping experiences.
The Challenge of Proving ROI
One of the biggest challenges facing virtual try-on startups is proving to brands that the technology is a money maker. To do this, software providers will need to partner with brands and organize data to directly attribute any bump in sales to try-on software. This will require a significant investment in data analysis and tracking, but the payoff could be significant. As Sandy Sholl, founder and CEO of Zelig, notes, "The real shift comes when everybody knows that this technology makes everybody a lot of money." By providing a clear ROI, virtual try-on startups can convince brands to invest in the technology and make it a standard part of the online shopping experience.
Conclusion
Virtual try-on technology has come a long way in recent years, thanks to the arrival of generative AI. With its ability to create photorealistic and personalized try-on experiences, virtual try-on has the potential to revolutionize the online shopping industry. While there are still challenges to overcome, startups and software giants are working together to make virtual try-on a daily habit for consumers. As the technology continues to improve and become more widespread, it’s likely that we’ll see a significant reduction in returns and an increase in sales, making virtual try-on a essential part of the online shopping experience.
