Junaio is an augmented reality app for iPhone and Android that works a lot like Yelp, helping users to find restaurants, shops and more. However, Junaio comes with a clever quirk called Junaio GLUE in which pointing your phone’s camera at a cartoon character brings him to life in 3D.

The 3D cartoon character can’t do much beyond point a gun at this point in Junaio’s development, but it’s an augmented reality intervention that might reap huge benefits in the future.

Fashion has become increasingly more and more interactive and could get big boost by incorporating augmented reality experiences in the apps they develop. Imagine if that 3D cartoon character could help users navigate a busy and crowded street or shop, using the user’s preferences to point at stores or items it thinks the user would like — a contemporary Ask Jeeves, if you will.

What if you could use augmented reality to trigger reward items by visiting and treasure hunting certain areas?  Could you use augmented reality in conjunction with location based campaigns like Jimmy Choo’s @CatchAChoo or another location-based marketing initiative? We think so.

The possibilities are endless.  I can easily imagine a website like Polyvore using this kind of augmented reality, with certain clothing items or places triggering digital versions that could be mixed and matched in a set. Watch Engadget’s video demo, and try to imagine all the possibilities: