There’s been a seismic shift in the way we shop for fashion. We were once dependent on going in-store to physically browse, touch, and try on endless garments to ensure fit and style. However, e-commerce has introduced a virtual shopping experience eliminating these tactile touchpoints—often the difference between making the purchase or putting it back on the rack.
Last year, 2.71 billion people made online purchases—and though shopping for apparel is still predominantly done in-person, 43% of U.S. consumers bought clothing and 33% bought shoes online. More consumers are embracing shopping via online storefronts and the younger, more digitally-savvy generations hold more spending power. Brands are stepping into the new era with technology bridging the gap between consumer preferences and shopping experiences that transcend channels—whether at a brick-and-mortar store, online, or a mix.
Forward-looking brands and retailers are already leaning into technology like AI and augmented reality (AR) to create more engaging customer experiences. To remain competitive in a digital-first world, brands must be prepared to follow suit, tackling these hurdles head-on.
THE VIRTUAL DRESSING ROOM
Despite its popularity, shopping for clothes and shoes online can be a gamble. Is this shirt going to be flattering on me? Can I pull off this leather jacket? Historically, the only way to find out was in-store, but not everyone wants or has the time to leave the house for answers. Retailers like Amazon and Warby Parker introduced at-home try-on programs years ago, but they recently discontinued them. Now, many brands are opting for virtual dressing rooms on their websites or apps, allowing customers to try on products from their own homes and have fun trying out new styles.
Virtual try-on (VTO), isn’t new. It’s long been available in the beauty industry for makeup and skincare, but early fashion applications left much to be desired (e.g., sticker-like filters). Until now, fashion VTO relied on detailed 3D SKUs, digital product representations that can be tried on virtually with AR.
More recently, a new VTO generation powered by GenAI is enabling brands to create stunning video and photo-based try-on experiences without needing expensive 3D assets. These hyper-realistic previews deliver 3D realism with social media content creation’s scalability and ease, giving consumers a dynamic look at how garments move, fit, and feel across websites, in-store displays, and social media. At the 2025 Global Beauty and Fashion AI Forum in New York City, we at Perfect Corp. showcased this innovation for the first time through a virtual fitting room powered by precise generative AI. Attendees could try on fashion week styles from emerging designers Videmus Omnia and The Horse Hub in a hyper-realistic, immersive way. Google Shopping also launched a generative AI try-on tool specifically for dresses, including brands like Anthropologie, Everlane, and H&M.
SCALE FASHION INNOVATION WITH GENERATIVE AI
Beyond VTO, generative AI enhances online personalization and styling in a more scalable and affordable way. From stylists to digital closets and content creation, brands are exploring use cases far beyond trying on clothes. It’s table stakes for brands to better serve their customers and deliver more interactive shopping experiences. According to Google, 81% of retail decision makers feel urgency to adopt generative AI, with 72% saying they are ready to deploy generative AI in the coming year.
The beauty of GenAI is that it’s incredibly versatile, with more applications popping up daily. Generative AI APIs make this innovation more accessible, allowing brands to quickly integrate AI styling, personalization, and virtual try-on into existing platforms without needing to build complex systems from scratch. Notably, GenAI advancements have evolved AI styling from generic product recommendations based on algorithms to always-on personal assistants based on real-time feedback—taking personalization and customer service to a new level.
Many brands have implemented conversational AI agents on their websites for customer support, but smart styling assistants can now recommend full outfits in seconds. For example, global fashion brand Mango recently launched Mango Stylist, for customers to ask style-related questions and receive curated outfit suggestions based on user behavior, body data, and occasion.
Digital closets are increasingly popular as well. Similar to Cher’s virtual closet in Clueless, GenAI can help consumers build, manage, and style digital wardrobes using their own items—while also recommending pieces to complete look, with shoppable links for purchasing. Google’s Doppl is experimenting with this, and more brands will likely do the same.
THE RISE OF SOCIAL SHOPPING
Today, shopping isn’t just at the store, on a website, or an app. Social commerce is becoming a common channel for consumers to discover new products and buy items directly from social media platforms. Consumers are already scrolling TikTok, Instagram, and Pinterest, and many will go out of their way to look up fashion items from an influencer’s post. Why not offer them a convenient way to purchase apparel, shoes, and accessories from their feeds?
In the U.S., we’re tracking toward $80 billion in social commerce sales in 2025, accounting for over 17% of all online sales this year. Considering over 5 billion people currently use social media an average of 2.5 hours daily, social commerce is a great opportunity to meet consumers where they are—on the “For You” or “Discover” pages. By tapping into social commerce, brands and retailers can reach larger and more targeted audiences thanks to ads and influencer marketing, all while creating a more delightful consumer experience, increasing engagement, conversion, and loyalty. It’s a no-brainer for brands that want to stay ahead.
Some brands are going all-in on social commerce to get closer to their customers. Zara’s live broadcasts on China’s Douyin draw millions of viewers, generating significant sales. Zalando’s Snapchat integration lets customers try on clothing virtually, expanding reach while keeping engagement high. These tools provide more interactive consumer experiences, while allowing brands to unlock scalable personalization.
Fashion’s future isn’t just in-store, online, or on your smartphone. It’s everything. Consumers want to shop for fashion blending the in-person physical touchpoints they appreciate, with the digital convenience they’re used to.
To deliver this, fashion brands need technologies like AI and AR. Runways still matter—but so do livestreams, digital closets, and virtual fitting rooms. The brands that will win are those successfully embracing AI and other technology to create fresh, consistent, and exciting shopping experiences, seamlessly bringing the best of in-person and online shopping.
Alice Chang is CEO and founder of Perfect Corp.
