How Generative AI for Virtual Try-Ons Giving Fashion Brands a Competitive Edge

Imagine being able to try on clothes, shoes, or even the perfect makeup style without ever leaving your home. Generative AI for virtual try-ons is making this a reality for online shoppers by creating photorealistic images and interactive experiences that feel just as real as trying on products in a store.

Using a single photo, a virtual try-on tool can generate realistic images of outfits or accessories on virtual models, helping customers feel represented and confident in their choices.

McKinsey estimates that in the next three to five years, generative AI could add anywhere from $150 billion to $275 billion to the profits of the apparel, fashion, and luxury industries. With tools that can codesign products, speed up content creation, and even create lifelike virtual models for campaigns, the possibilities are endless.

As McKinsey puts it, “Generative AI has the potential to help fashion businesses become more productive, get to market faster, and serve customers better. The time to explore the technology is now.“

Generative AI creates space for creativity and personalization. Brands that focus on personalizing experiences—like recommending the perfect size or makeup style—see 40% higher revenues than those that don’t, according to McKinsey.

From building customer engagement to offering a diverse set of try-on options, this technology is opening new possibilities for brands to connect with shoppers. Whether it’s creating a photorealistic image of a dress or helping customers feel confident in their purchases, generative AI is redefining what’s possible in the world of fashion.

In this blog, we’ll look deeper into how this transformation happened, explore inspiring success stories, uncover the key benefits, address the challenges, and take a look at the future scope of generative AI in virtual try-ons.

The Evolution of Virtual Try-Ons

Remember when Converse launched one of the earliest apps that let users see how their sneakers would look on their feet using AR? It was a big deal. People got to experience the convenience of “trying” a product without actually stepping into a store. Back then, it was more of a novelty than a necessity. Fast forward to today, and virtual try-ons (VTOs) are at the heart of fashion e-commerce.

The Catalyst: COVID-19

Now, let’s talk about the elephant in the room: the pandemic. When COVID-19 hit, physical stores shut their doors, and online shopping became the lifeline for both brands and consumers. But shopping for clothes online isn’t easy. Size mismatches, style doubts, and the inability to “try before you buy” were significant barriers.

• This is where AR (Augmented Reality) and VR (Virtual Reality) stepped in as saviors.
• Retailers needed a way to replicate the in-store experience, and virtual try-ons filled the gap.
• From eyewear to apparel and even makeup, VTOs became a game-changer for brands like Warby Parker, Sephora, and Nike.

The timing was perfect. Consumers, already adapting to Zoom calls and remote everything, were ready to embrace a digital fitting room. And the results? Fewer returns, better personalization, and, most importantly, a better shopping experience.

The Growth Story

Let’s get into some numbers, shall we?

• In 2021, the virtual fitting room market was valued at $3.5 billion.
• By 2028, it’s projected to hit a whopping $12.97 billion, growing at an impressive compound annual growth rate (CAGR).

What’s fueling this growth? 

1. Reducing returns, which cost retailers billions annually.
2. Offering a personalized shopping experience that makes customers feel seen and understood.
3. Catering to a generation that expects immersive, interactive solutions as standard.

The Tech Behind It

AI algorithms, especially generative AI, are the backbone of modern VTOs. They don’t just put a product onto your photo; they analyze your body type, skin tone, and even lighting conditions to make the experience hyper-realistic.

• Augmented Reality (AR): Think of this as overlaying products (like glasses or a dress) on your real-time image.
• Virtual Reality (VR): This goes a step further, creating an immersive virtual fitting room where you can move, rotate, and interact with the product.

Generative AI: The Technology Behind Virtual Try-Ons

Virtual try-ons wouldn’t be half as impressive without Generative AI. It’s the secret sauce making these experiences feel more like magic than just tech. But how does it actually work? Let us walk you through the key processes.

1. Body Scanning: Building a Digital You

The first step is body scanning, where the system creates a detailed digital model of your body. It uses advanced algorithms to:

• Analyze your height, weight, and body proportions.
• Adapt to subtle details like posture and movement.
• Build a personalized avatar or overlay your features onto the product in real-time.

This process ensures that the clothes, shoes, or accessories fit and look as accurate as they would in a real-world fitting room.

2. Realistic Garment Rendering: Making It Look Real

Generative AI creates hyper-realistic 3D models of garments.

• Fabrics behave like they would in reality—flowing, stretching, and draping naturally.
• AI analyzes lighting and texture to show how colors and patterns look under different conditions.
• It even adjusts for movement, so you can see how a dress flows when you turn or how sneakers flex as you step.

3. Size Recommendations: Solving the Fit Dilemma

One of the most annoying parts of online shopping is guessing your size. Generative AI eliminates this headache by offering precise recommendations based on your body scan.

• It compares your measurements to the garment’s specs.
• The system learns your preferences over time, like if you prefer a snug fit or something loose.
• Some platforms even allow users to input past sizes or favorite brands to refine recommendations further.

4. AI’s Role in Hyper-Personalized Experiences

Here’s where Generative AI goes above and beyond. It’s not just about sticking clothes onto an avatar; it’s about creating an interactive, tailored experience for every user.

• Adaptability: AI adjusts the fit and appearance based on unique body shapes and preferences.
• Realism: The garments don’t just “sit” on your body; they interact dynamically, making you feel like you’re wearing them.
• Enhanced engagement: Personalized suggestions like “This shade complements your skin tone” or “This jacket fits best with your posture” make the process feel intuitive and human.

Benefits for Fashion Brands Implementing Generative AI for Virtual Try Ons

1.Better Shopping Experience for Customers

At its core, virtual try-on technology bridges the gap between online and in-store shopping.

• Shoppers get a personalized experience that mimics trying on clothes in a physical fitting room.
• Realistic garment rendering and precise size recommendations boost confidence, reducing the guesswork involved in online purchases.
• Customers are more likely to explore new styles or brands when they can visualize how an item looks and feels on them.

In short, a happier customer is a loyal customer.

2.Boost in Sales and Revenue

As stated earlier, companies that excel in personalization have reported 40% higher revenues than their competitors. Why?

• Personalization drives engagement and trust, leading to higher conversion rates.
• Customers who find their perfect fit and style are more likely to make repeat purchases.
• The technology also enables upselling by recommending complementary items (e.g., “This scarf pairs perfectly with your coat”).

3. Reduced Returns and Waste

Returns are a massive headache for retailers and an environmental concern. Virtual try-ons tackle this issue head-on:

• With accurate size and fit recommendations, customers are less likely to order multiple sizes or return items that don’t meet expectations.
• Fewer returns mean lower shipping costs and reduced carbon footprints.
• By embracing this tech, brands contribute to sustainability, an essential value for today’s eco-conscious consumers.

4. Competitive Differentiation

In a crowded market, standing out is essential. Virtual try-ons offer brands a way to differentiate themselves through innovation.

• Being early adopters of Generative AI and AR/VR positions brands as leaders in the fashion tech space.
• It creates a buzz-worthy experience that attracts tech-savvy and trend-conscious customers.
• As big players like Google and startups innovate rapidly, lagging behind could mean losing relevance.

5. Reaching More People

Virtual try-ons break down geographic barriers and create a more inclusive shopping experience, especially for international customers. Here’s how:

• Size Consistency Across Countries: Sizes can vary a lot from country to country, making it tricky for international shoppers to feel confident about their purchase. Virtual try-ons solve this by offering accurate size recommendations tailored to a customer’s unique body type.
• No Guesswork: When customers can visualize how the product will look and fit on them, they’re more likely to take the plunge, even if they’re shopping from a different country with different sizing standards. This reduces the chances of sizing confusion or dissatisfaction.
• Global Reach: With virtual try-ons, brands can offer a seamless shopping experience for customers worldwide, opening doors to a larger, more diverse market.

6. Learning About Your Customers

Virtual try-on tech is a treasure trove of data, giving brands valuable insights into their customers’ preferences and behaviors.

• Personalized Shopping: As customers interact with virtual try-ons, brands can track which products they’re trying on, how often, and for how long. This information can help refine product offerings and improve marketing strategies.
• Understanding Preferences: You’ll gain a deeper understanding of what your customers like or dislike, which can help you create better, more tailored products.
• Improving Recommendations: The more data you collect, the better your AI can recommend products that suit your customers’ tastes. Over time, this creates a shopping experience that feels highly personal, driving customer loyalty and increasing conversion rates.

7. Free Promotion via Social Sharing

People love sharing cool, new experiences—and virtual try-ons are no exception.

• User-Generated Content: When customers try on clothes virtually and love how they look, they often share their results on social media, giving your brand free, organic exposure.
• Viral Potential: Social media is a powerful platform for brand visibility. Customers may tag your brand or share their virtual try-on experience with their friends and followers, extending your reach far beyond traditional advertising.
• Building Brand Awareness: As more people share their virtual try-on looks, your brand naturally gains visibility and credibility, especially among younger, tech-savvy shoppers who value fun, interactive shopping experiences.

Success stories of Brands Pioneering Virtual Try-Ons

1. Warby Parker: Revolutionizing Eyewear Shopping

Warby Parker, a leader in eyewear retail, was one of the first to harness augmented reality (AR) for virtual try-ons.

• How it works: The brand uses facial mapping technology in its mobile app to allow customers to see how different glasses frames look on their faces in real-time.
• Impact: This innovative approach gives customers the confidence to purchase glasses without trying them on physically, making it easier to shop online.

2. Nike: The Perfect Fit with Nike Fit

Nike has taken virtual try-ons to the next level with its Nike Fit feature in their mobile app.

• How it works: The app uses AR to scan your feet and suggest the perfect shoe size based on the results.
• Impact: This helps customers avoid the frustration of ordering the wrong size and improves the overall shopping experience, ensuring they get a perfect fit every time.

3. Sephora: Virtual Makeup Try-Ons

Source: Heather Adorna

Sephora’s Virtual Artist app has set a new standard for makeup shopping.

• How it works: Sephora uses AR and facial recognition to allow customers to try on makeup virtually. The app lets you see how various products, from foundation to lipstick, will look on your skin in real-time.
• Impact: This interactive, real-time experience helps customers confidently choose makeup shades, leading to higher conversion rates and improved customer satisfaction.

4. Topshop and L’Oréal: Mixing In-Store and Mobile Experiences

Topshop and L’Oréal have enhanced the shopping journey by blending virtual try-on tech with both in-store and mobile experiences.

• Topshop: They implemented a virtual fitting room using Kinect technology in stores, where customers can see how clothes will look on them without having to try them on physically.
• L’Oréal: Their Makeup Genius app uses AR for virtual makeup try-ons, offering tutorials and expert advice, empowering customers to explore new looks confidently.
• Impact: Both brands offer immersive shopping experiences that reduce friction and elevate customer engagement.

5. Ray-Ban and IKEA: Going Beyond Fashion

Virtual try-on technology isn’t limited to just clothing and makeup—it’s also making its mark in eyewear and furniture.

• Ray-Ban: The eyewear brand offers a virtual try-on feature on its website, allowing customers to upload a photo or use their webcam to see how sunglasses look on them.

• IKEA: With its Place app, IKEA uses AR to help customers visualize how furniture and home accessories will look in their own spaces before making a purchase.

• Impact: Both Ray-Ban and IKEA are making it easier for customers to shop and make decisions without having to visit physical stores.

6. Zara: Smart Mirrors for a Better In-Store Experience

Zara is blending physical retail with smart technology to enhance its in-store shopping experience.

• How it works: In some stores, Zara has installed smart mirrors that show customers how clothing will look on them when they approach with an item.
• Impact: This innovative approach provides a unique, tech-forward shopping experience and helps customers make quicker decisions in-store.

Source: Refinery29

7. Farfetch: Luxury Virtual Try-Ons

Farfetch, a global online fashion marketplace, has made significant investments in virtual try-on technology, especially for luxury products.

Source: Vouge Business

• How it works: Partnering with Belarusian software company WANNA, Farfetch introduced virtual try-ons for luxury watches, shoes, jewelry, and makeup.
• Impact: A 14-week study showed that adding virtual try-on functionality increased customer engagement, with a 47% rise in site visits, 22% more add-to-bag actions, and an 81% increase in wishlist adds for watches. This demonstrated the huge potential for virtual try-ons in the luxury retail space.

Challenges and Limitations of Virtual Try-Ons

1. Data Privacy Concerns

One of the biggest challenges when it comes to virtual try-ons is the handling of personal data, especially when it involves customer measurements and images.

• Customer Trust: When a customer uploads their photos or allows their body measurements to be scanned, there’s always a risk of data being misused or leaked. This can lead to serious trust issues.
• Regulations: Brands must comply with stringent data privacy regulations like GDPR or CCPA. Failure to do so could result in legal repercussions and a loss of customer confidence.
• Sensitive Data: Since these measurements and images are sensitive, brands need to ensure they have robust data encryption and secure storage solutions to protect customers’ personal information.

2. Integration and Cost Barriers for Small and Medium-Sized Brands

Implementing virtual try-on technology can be a complex and costly process, posing significant barriers for small and medium-sized brands.

• High Setup Costs: Setting up AR-based virtual try-ons requires an investment in technology infrastructure, such as camera systems, AR software, and skilled tech teams. For smaller brands, this can be a substantial upfront cost.
• Integration with Existing Systems: Many smaller brands may face challenges integrating these systems with their existing websites or eCommerce platforms. This can lead to increased development time and costs.
• Ongoing Maintenance: Beyond the initial setup, there are also costs related to maintaining the system, including software updates, bug fixes, and customer support.
• Affordable Solutions: While larger brands can easily absorb these costs, small and medium-sized brands may struggle without the necessary resources, hindering their ability to compete with bigger players.

3. Scalability and Maintaining Accuracy

As brands scale and offer more products, keeping virtual try-ons accurate and reliable can be a major challenge.

• Accuracy Issues: Ensuring the virtual try-on experience is realistic and true to life is tough. For example, clothing may not fit the same way in virtual simulations as it does in real life. Similarly, sizing recommendations might not always be spot-on.
• Diverse Body Types and Sizes: It’s crucial for virtual try-on systems to accommodate a wide variety of body shapes and sizes. Failing to do so can alienate certain customer groups and negatively impact brand reputation.
• Product Variability: As new products are added, maintaining the accuracy of the virtual fitting system becomes more difficult, especially if new items have different materials, cuts, or fits.
• Technology Limitations: While current technology is impressive, it’s still not perfect. Some virtual try-on systems struggle with rendering complex fabrics or reflecting real-world conditions, such as how light or movement might affect how the product looks.

Future of Virtual try ons

1. Faster Product Launches and More Personalized Shopping

• Quick Product Testing: With AI, brands can test new products virtually before making them. This means new designs can hit the market faster because feedback from customers can be gathered instantly without needing physical samples.
• Smarter Shopping Recommendations: AI will make shopping even more personalized. Picture this: a store associate might suggest exactly what you’d like based on your past purchases or virtual try-ons. It’ll feel like the store is made just for you!
• Efficient Shopping: Instead of wasting time trying on everything in a store, AI will help show you only the items that fit your style, size, and preferences, saving you time and effort.

2. Helping the Environment: Less Waste and Fewer Samples

• Smarter Production: AI can help brands make only the products people actually want. By analyzing virtual try-on data, brands can know exactly what customers like and need, so they don’t end up with piles of unsold stock.
• No Need for Physical Samples: Instead of making real samples of every product, AI can show how clothes or accessories will look on customers in a virtual space. This saves a lot of money and resources.
• Less Waste: With better data on what customers want, brands can avoid making too many products that don’t sell, which helps reduce waste and supports sustainability in fashion.

3. More Personalization in Makeup, Clothing, and Accessories

• Customized Makeup: AI can give you a virtual makeup try-on experience that matches your skin tone and preferences. It can even suggest the best products for you, so you know what looks good before you buy.
• Custom Fit Clothing: For clothes, virtual try-ons will not just show you what fits, but also suggest personalized fits based on your body shape, making shopping for the perfect fit much easier.
• Custom Accessories: AI will also let you play around with different accessory styles. You can customize things like shoes, bags, or jewelry, and see how they’ll look on you before making a purchase.

Conclusion

Generative AI is no longer just a futuristic concept—it’s here, reshaping how we shop and interact with fashion. With tools powered by advanced generative AI models, fashion brands are bridging the gap between the digital and physical worlds, offering customers experiences that feel as real as trying on clothes in a store.

From creating photorealistic images of outfits to transforming a single photo into a convincing real model, this technology enhances personalization, boosts customer confidence, and drives innovation across the industry. By using this technology, the fashion industry isn’t just staying updated—it’s creating a whole new way for us to shop and enjoy fashion.

Bring Your Ideas to Life with Wow Labz

At WOW Labz, we specialize in creating custom Generative AI solutions tailored to your business needs. Whether it’s virtual try-ons for fashion, personalized customer experiences, or other AI-driven innovations, we’ve got you covered. Our team combines creativity and expertise to develop solutions that give your brand a competitive edge in a tech-driven world.

Explore our Generative AI Development Service to see how we can help turn your vision into reality. Let’s innovate together—Contact us today!