Nfinite, the leader in next-generation product visualization technology for brands and retailers, announced new findings from Coresight Research’s report Digital Merchandising Strategies: The Power of Automation and 3D Product Imagery in Retail. The survey, encompassing 190 leading brands and retailers in the U.S. and Europe, with annual revenues ranging from $50 million to over $5 billion, revealed that 69% of respondents identify product returns as a significant business challenge.
In 2022, product returns exacted a considerable toll on the retail industry, accounting for $816 billion in lost sales for U.S. retailers, as reported by the National Retail Federation (NRF) and Appriss Retail. Consumer dissatisfaction with delivered products not aligning with online images contributes to 11% of all returns among surveyed companies, according to Coresight Research.
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“Accurate product imagery is integral to customer satisfaction and reducing return rates. Our findings indicate that investing in CGI, particularly within the next 12 months, offers a substantial opportunity for brands and retailers to address these challenges,” said Coresight CEO and founder Deborah Weinswig.
Recognizing the significance of accurate imagery, 63% of respondents pinpointed improving the quality of product imagery as the top measure retail companies plan to adopt in the next year to mitigate returns arising from inconsistencies in product imagery.
The survey underscores a significant market opportunity for retailers to invest in CGI for product imagery, providing consumers with multi-dimensional views and lifestyle context to make informed purchase decisions. The survey reveals that 68% of respondents plan to invest in CGI in the next 12 months. Brands and retailers already investing in CGI reported various benefits, with 60% citing increased sales conversion—a 20 percentage point increase from 2022. Additional benefits included lower overall costs and a reduction in product returns.
“As consumers increasingly rely on online visuals for purchase decisions, the disconnect between product images and reality contributes significantly to the pervasive challenge of product returns. This data reinforces the critical role of accurate product imagery in addressing retailer challenges associated with product returns and highlights the market potential for CGI investments. Brands and retailers stand to gain substantial benefits, including improved sales conversion and cost reduction, by prioritizing enhanced product imagery in their strategies,” said Nfinite founder and CEO Alexandre de Vigan.
