We explore how companies plan to invest in and offer immersive experiences, based on a Coresight Research survey of US brands and retailers across fashion, home, CPG (consumer packaged goods)/FMCG (fast-moving consumer goods) and beauty that have invested in immersive experiences.

Market Scale and Opportunity

Immersive experiences are accessible and used across a wide range of platforms and devices. AR and VR (augmented and virtual reality) technologies are a large part of immersive experiences; the rapid growth of these markets—estimated 2017–2027 CAGRs of 17.4% and 25.7%, respectively—suggests that there is significant interest, investment and innovation in immersive experiences.

Coresight Research Analysis:

Immersive experiences are among retail companies’ top three investment priorities, according to our survey. Within this category, data/AI-enabled content for personalization, virtual try-on and virtual stores were ranked in the top three priorities by at least two in five respondents. All surveyed companies are at least considering increasing their investment in immersive experiences over the next 10 years—and 93% will “probably” or “definitely” do so in the next three years, showing a high level of urgency to implement technology-driven customer-engagement and selling strategies. When investing in immersive experiences, click-through rate, average order value (AOV) and net promoter score (NPS) are the top three metrics that surveyed brands and retailers consider.

Virtual stores enable brands and retailers to offer a unique and innovative shopping journey, bringing the best of the physical shopping experience to the online channel, while improving sales performance. 61% of surveyed brands and retailers have invested in virtual stores, and around nine in 10 companies that have done so report moderate or significant increases in total sales and online sales as a result. Coresight Research estimates that sales generated via virtual stores in the US will total $1.5 billion in 2023 and will grow at a strong CAGR of 27.0% between 2022 and 2030, to $7.1 billion. Factors such as technological advancements, consumers’ sustained online shopping behaviors and the desire for more engaging shopping and content experiences will drive sales growth.

Our survey found that 71% of surveyed brands and retailers have invested in data/AI-enabled content for personalization. The top three performance metrics that have increased as a result are click-through rate, time spent visiting stores and NPS, highlighting the effectiveness of personalization strategies in enhancing user interaction and satisfaction.

Some 40% of surveyed companies have invested in gamified shopping experiences, which have proven effective in driving a noticeable boost in online sales performance, according to our survey. More than three-quarters of surveyed companies that have invested in this type of immersive experience report a significant or moderate increase in online sales as a result.

Social shopping—which 65% of surveyed companies have invested in—positively impacts customer engagement and acquisition for brands and retailers. By expanding their  customer base, social shopping offers revenue growth opportunities for fashion companies in particular.

Retail is evolving, and immersive experiences are redefining customer engagement. By adopting virtual stores, AI-driven personalization, gamified shopping, and social commerce, brands can deliver more engaging, interactive, and personalized shopping experiences—leading to higher customer loyalty and long-term business growth.