The trend: Retailers are experimenting with virtual try-on tools to reduce returns.

• Levi Strauss is developing a feature called “Imagine on Me” for its site, which will use genAI to show shoppers how a product will look on them, with the aim of “increasing shopper satisfaction and conversion rates while reducing return rates,” per a company blog post.
• Zara introduced an AI try-on feature for app users earlier this year that lets shoppers view an ensemble from multiple angles.
• Zalando plans to roll out its virtual try-on technology to all customers this year, eight years after it began experimenting with the feature.

Why it matters: Virtual try-on promises to solve one of the major pain points of ecommerce by giving customers a better sense of how products may fit in a bid to improve conversions and cut down on returns. Rapid advances in genAI have made the technology more accessible—and accurate—enabling retailers to show shoppers how specific fabrics, cuts, and items will look on a wider range of bodies.

While companies are largely in the early phases of testing, initial results are promising.

• Zalando returns fell 40% following an April 2023 test, the company’s director of applied science, Reza Shirvany, told Business of Fashion.
• AI startup Catches expects its virtual try-on app to deliver a 10% increase in conversions and a 20X to 30X return on investment for brands.

Implications for retailers: Investing in tools like virtual try-on is a good option for retailers looking to curb returns without resorting to stricter policies. But first, companies have to get shoppers comfortable with relying on the technology when making purchasing decisions, which could be an uphill battle since most aren’t interested in using AI virtual try-on tools to shop.

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