Tencent's New AI Virtual Try-On

Tencent's entry into virtual try-on places it in a competitive landscape alongside Google's AI-powered tool, which now allows U.S. shoppers to upload their own photos for billions of items from retailers like Macy's and Walmart. The space also includes specialized platforms like VISBOOM and FASHN.ai, which are focused on converting product images into on-model photoshoots for brands. The new tool is part of Tencent's broader investment in generative AI, building on its Hunyuan family of models. This ecosystem includes the Hunyuan3D-2.0 technology, a suite of open-source models designed to create 3D visuals from text and images, signaling a deeper play into asset creation for virtual showrooms, gaming, and VR. The AI in fashion market was valued at approximately $2.46 billion in 2025 and is projected to grow to over $72 billion by 2035. Generative AI alone is expected to add between $150 billion and $275 billion to the apparel and luxury sector's operating profits within the next five years, primarily through enhanced design, marketing, and personalization. Luxury houses are already deploying similar technologies to merge digital and physical retail. Gucci uses AR for virtual sneaker try-ons in its mobile app, while Dior integrates AI for personalized in-boutique experiences. Chanel has focused on the beauty sector, allowing customers to virtually apply makeup with a focus on realistic skin texture and color accuracy. This technology extends beyond e-commerce into campaign creation, a space where AI is already being utilized. Valentino produced an entire AI-generated campaign for its "Essentials" menswear line in 2023, and Mango launched a campaign for its teen line using AI models wearing real garments. For creative teams, these tools accelerate the production of marketing assets, drastically reducing the time and cost associated with traditional photoshoots, which can range from $50,000 to $200,000 per season. AI platforms can now generate hundreds of visual variations for different markets and channels in days, allowing for rapid A/B testing of creative concepts before committing to a full-scale production. The implementation of virtual try-on has been shown to lower product return rates by as much as 40% by increasing buyer confidence. For luxury brands, the key challenge remains ensuring the technology serves the brand experience, maintaining hyper-realism in material rendering and lighting rather than synthetic perfection.