Perfect Corp. plans to acquire Wannaby to expand Perfect’s virtual try-on technology solutions into new luxury market segments like shoes, bags and apparel.
The company entered into an agreement with Wannaby’s current owner, Farfetch, to make the acquisition, Perfect Corp. said in a Monday (Dec. 23) press release.
Wannaby provides virtual try-on technology and digitalization solutions for the fashion industry and has served more than 30 luxury brands, according to the release.
Subject to customary closing conditions, the acquisition is expected to be finalized “in the coming months,” the release said.
“By welcoming Wannaby’s capabilities into our portfolio, we are poised to enrich our digital solutions and reinforce our presence in the fashion tech landscape,” Perfect Corp. Founder and CEO Alice Chang said in the release. “This expansion into new fashion categories such as shoes and bags demonstrates our commitment to innovation and our ability to deliver exceptional value to clients across diverse sectors.”
After the acquisition, Perfect Corp. and Farfetch will have a new collaborative relationship in which Farfetch will continue to use Wannaby’s solutions, per the release.
The immersive shopping experiences provided by technologies like virtual try-on can provide consumers with a deeper understanding of products compared to traditional two-dimensional images or descriptions, alleviate uncertainties that consumers may have when shopping online, and create a stronger connection between consumers and brands, PYMNTS reported in April.
“As self-expression and creativity become increasingly important, consumers expect more personalized and diverse experiences from mobile apps,” Chang said April 24 during the company’s quarterly earnings call.
Virtual try-on technology can also help eCommerce merchants reduce the costs and inefficiencies of returns, Perfect Corp. President and Chief Growth Officer Wayne Liu told PYMNTS in an interview posted in February.
In the beauty segment, for example, Perfect Corp.’s shade-matching capabilities for products like foundation can ensure customers will be satisfied with the product when it arrives, reducing returns and therefore the waste that occurs when beauty products that are returned are throw away.
“Virtual try-on helps to reduce returns, because you get the best product, which you like [the most],” Liu said.
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