In the second quarter of 2021, Snap, the parent company of Snapchat, acquired Th3rd, an Amsterdam-based 3D-scanning studio, to bolster its augmented reality (AR)-powered commerce ambitions. Th3rd specializes in creating high-quality digital twins of people and products, enabling brands and retailers to digitize their product catalogs at scale. Four team members from Th3rd joined Snap as part of the acquisition, and the startup’s technology has been used to enhance Snap’s AR projects, including its newly launched offering for brands. Snap has introduced several tools to better appeal to retailers and brands, including in-app destination for AR fashion and virtual try-on called “Dress Up,” the ability to update product information and pricing in real-time, better analytics, and more. Snap has also partnered with major players in the retail space, including Amazon, MAC Cosmetics, Ulta Beauty, American Eagle, Puma, Chanel, Walmart, and LVMH. The AR retail market is expected to have a projected value of $1.2 trillion by 2030, according to a combined study from Publicis media and Snap. Other companies, such as Pinterest, Google, and Amazon, have also invested in AR-powered commerce.
Snap, the parent company of Snapchat, quietly acquired Th3rd, an Amsterdam-based 3D-scanning studio, in the second quarter of 2021. The move was aimed at bolstering Snap’s augmented reality (AR)-powered commerce ambitions, which it has been investing in heavily in recent years.
Th3rd, which was founded in 2014, specializes in creating high-quality digital twins of people and products, allowing brands and retailers to digitize their product catalogues at scale. After being selected for Adidas’ Accelerator in Europe, the company worked with the retailer to digitize more than 2,500 shoes.
Snap declined to disclose the financial terms of the deal, but a spokesperson confirmed that four team members from Th3rd, who are based in the Netherlands, joined Snap as part of the acquisition. The company also declined to share how it incorporated Th3rd’s capabilities into its offerings, but it is understood that the startup’s technology has been used to enhance Snap’s AR projects, including its newly launched offering for brands.
In April 2022, Snap introduced tools that turn retailers’ photos into 3D assets and launched an in-app destination for AR fashion and virtual try-on called “Dress Up.” The company has also rolled out a number of upgrades to better appeal to retailers and brands, including the ability to update product information and pricing in real time, access better analytics, and more easily create AR Shopping Lenses, among other things. At the same time, Snap updated its Lens Web Builder that allowed brands to create shopping Lenses in a matter of minutes.
Snap’s AR-powered commerce ambitions have also been bolstered by its partnerships with other major players in the retail space. In addition to Th3rd, Snap has acquired a number of other AR companies in recent years, including WaveOptics, Fit Analytics, Vertebrae, and Forma. It has also partnered with Amazon for its Virtual Try-On shopping experience. Other brands that have leveraged Snapchat’s AR Shopping Lenses include MAC Cosmetics, Ulta Beauty, American Eagle, Puma, Chanel, Walmart, and LVMH.
According to a combined study from Publicis media and Snap, the AR retail market will have a projected value of $1.2 trillion by 2030. Snap says that 250 million Snapchat users have engaged with AR shopping lenses more than 5 billion times since January 2021, and a recent study with consulting firm Ipsos found that 92% of Gen Z users are interested in using AR for shopping.
Snap is not the only company investing in AR-powered commerce, however. Pinterest and Google have also leveraged AR to allow shoppers to try on makeup, apparel, and accessories. Amazon launched a virtual try-on experience for shoes in June 2022, available to consumers in the U.S. and Canada in the Amazon iOS app.
Leave a Reply