HOW VIRTUAL REALITY WILL IMPACT SHOPPING HABITS? Is VRcommerce or Vtail for real? Is 2016 the year virtual reality finally makes its breakthrough as a mainstream technology?
Virtual Reality is going beyond everyone's expectations: creating a new form of brand connection based on empathy, thus becoming a powerful marketing asset to engage shoppers. Within the next 5 years, VR and AR (Augmented Reality) global revenues are set grow exponentially to 100bn$. Those projections clearly show the opportunity for retailers to be early adopters and tailor immersive shopper experiences. Whether you are curious or knowledgeable, let’s take a look into the future of retail in VR with our exclusive keynote Jean-François Tremblay, Virtual Reality & Augmented Reality Practice Lead at Valtech
5. Demistifying the Jargon
DEFINITIONS
Au
Re
augmented
reality
View of a physical, real-world environment
whose elements are aug- mented by computer-
generated items (data, graphics, video, sound)
Real world is not blocked out:
users can see the real world
and virtual objects
Interaction with virtual objects is
limited
Smartphones and tablets can
support augmented reality apps
6. Demistifying the Jargon
DEFINITIONS
Virtual
Realit
y
Replicates an environment, real or imagined, and simulates
a user’s physical presence and environment to allow for user
interaction and sensory experience.
Most immersive experience
Real world blocked out, user can only see the virtual
world and virtual objects
Devices range from least expensive Google Cardboard to
more expensive devices such as Samsung Gear, Oculus
Rift and HTC Vive.
Replicates an environment, real or imagined,
and simulates a user’s physical presence and
environment to allow for user interaction and
sensory experience.
Most immersive experience
Real world blocked out, user
can only see the virtual world
and virtual objects
Devices range from least
expensive Google Cardboard
to more expensive devices
such as Samsung Gear,
Oculus Rift and HTC Vive.
virtual
reality
7. the potential of VR is to reimagine
reality, to personalise it
– to allow access to objects,
places and people that are out
of reach in the real world.
8. VR is not novel;
it’s a series of
visionaries and
innovations.
But most, VR as we know it was created by a
handful of pioneers in the 1950s and 1960s and
afterwards the 1990s.
25. 9
79%
Generation Z
is the most passionate towards VR
73%
followed by millennials
70%
Generation X
Who’s interested ?
26. 17
66%
of consumers are interested in buying
items via VR
63%
said that they’re expecting VR to change
the way they shop
In what?
27. Active VR users worldwide from 2014 to 2018 (in millions)
0
20
40
60
80
100
120
140
160
180
200
2015 2016 2017 2018
Early Majority/KT&T Early Adopters/Light Gamers Innovators/Hardcore Gamers
Source: KZero Statista 2015
28. virtual reality
market is estimated to be worth $30 billion
in revenue by 2020.
market is estimated to be worth $56.8 billion
in revenue by 2020.
augmented reality
35. Demistifying the Jargon
ENHANCED REALITY
SPECTRUM
75% of the Forbes World’s most Valuable Brands have created
some form of virtual or augmented reality experience for
customers or employees, or are themselves innovating and
developing these technologies.
Virtual Worldhypergridbusiness.com October 2015
36. 17
66%
of consumers are interested in buying
items via VR
63%
said that they’re expecting VR to change
the way they shop
37. Enhanced Reality in Retail
BUSINESS OPPORTUNITIES
FOR CUSTOMERS
NEED SOLUTION BENEFITS
Learn more about products before
visiting a store.
Augmented Catalogs
Try online
Live streamed events
Increase overall product engagement through
augmented and virtual reality experiences. Higher
product engagement results in higher
conversions.
Find what they are looking for in-
store quicker.
In-store augmented
navigation
Reduce the time to product engagement by
ensuring customers find the right product as
quickly as possible.
Select the right product for their
needs.
Product Visualization
Tools
Helping customers to find the right product for
their needs results in higher conversions.
Experience products that aren’t in
stock.
Augmented Mirrors
VR demos
Carry fewer products in-store reducing overall
floor space.
Learn more about their product after
purchase.
VR/AR Manuals Create more engaging product manuals and
installation guides
Get help when a product needs
servicing.
AR/MR Service Tools
Improve customer loyalty by providing more
engaging customer self service tools
38. Enhanced Reality in Retail
BUSINESS OPPORTUNITIES
FOR RETAILERS
NEED SOLUTIONS BENEFIT
Create more informed store
assistants.
Interactive Training Tools and
Knowledgebase
Increasing store assistants familiarity with
products empowers them to make more
informed recommendations to customers.
Plan the layout of stores
without needing to move a
single physical product.
Virtual Planograms
Planning retail store layouts is time consuming
and costly. By virtualizing the process, changes
can be tested in real-time without the need to
move physical stock.
Finding the right product for a
customer’s needs.
Product Visualization Tools
Helping customers to find the right product for
their needs results in higher conversions.
39. The retail experience relies on
engagement. engaging customers
earlier in the sales cycle and for longer
increases the likelihood of conversion
The introduction of virtual and augmented reality experiences will create
a compelling alternative to the need for physical interaction with products
before and after purchase.
40. WHY AR IS A
PRIORITY
SOLUTION FOR
RETAIL
Mobile behavior in retail - USA
The 4th dimension of the store.
With customer’s mobile device of choice.
Mobile
influences 84%
of in-store
transaction
57% of
customers
use mobile in
store
41. IN-STORE Ret RealEn
h
DEMOS
ai ia
l tnycine
d
lets consumers experience
a hands-on product demo
without ever touching the real product.
Brands
LBE
Looking to
generate a buzz
about your
brand
42. IN-STORE Ret RealEn
h
DEMOS
ai ia
l tnycine
d
lets consumers experience
a hands-on product demo
without ever touching the real product.
Brands
in-store demo
lets consumers experience
a hands-on product demo
without ever touching the real product.
Lowe's
Audi
Lego
Volvo
43. IN-STORE Ret RealEn
h
NAVIGATION
ai ia
l tnycine
d
lets consumers navigate
through stores finding the
products they are looking for
with ease.
Brands
in-store
navigation
lets consumers try on clothing and change the color
or pattern instantly without needing to leave the
changing room.
Best Buy
Home Depot
Walgreens
44. VIRTUAL Ret RealEn
h
TRY ON
ai ia
l tnycine
d
lets consumers try on products at
home or in-store using augmented
reality.
Retail Segments
Apparel
Watches
Jewelry
Sunglasses
Brands
virtual try on
lets consumers try on products at home or in-store
using augmented reality.
Retail Segments
Apparel /Watches /Jewelry /Sunglasses
RayBan
Tissot
Dezeen
De Beers
45. AUGMENTED Ret
R
e
al
E
n
h
CATALOGS
ai ia
l tnycine
d
brings printed catalogs to
life enabling consumers to visualize
products in 3D.
Brands
augmented
catalogs
brings printed catalogs to life enabling consumers
to visualize products in 3D.
IKEA
Tesco
Asos
46. AUGMENTED Ret
R
e
al
E
n
h
MIRRORS
ai ia
l tnycine
d
lets consumers try on
clothing and change the
color or pattern instantly
without needing to leave
the changing room.
Brands
augmented
mirrors
lets consumers try on clothing and change the col-
or or pattern instantly without needing to leave the
changing room.
Nordstorm
Rebecca Minkoff
Uniclo
Neiman Marcus
47. IN-HOME Ret RealEn
h
VISUALIZATION
ai ia
l tnycine
d
lets consumers visualize how
products will look in their
intended setting using
augmented reality.
Brands
at-home
visualisation
lets consumers visualize how products will look in
their intended setting using augmented reality.
IKEA
48. LIVE Ret RealEn
h
STREAMING
ai ia
l tnycine
d
lets consumers experience
a live event, show or
demonstration through
virtual reality.
Brands
Support
lets consumers experience a live event, show or
demonstration through virtual reality.
Hyundai
49. LIVE Ret RealEn
h
STREAMING
ai ia
l tnycine
d
lets consumers experience
a live event, show or
demonstration through
virtual reality.
Brands
Store design
and testing
Lets you see, explore and test the design before
physical construction
Cat
Kidston
50. LIVE Ret RealEn
h
STREAMING
ai ia
l tnycine
d
lets consumers experience
a live event, show or
demonstration through
virtual reality.
Brands
Employees can experiment life like situations
using virtual reality
Employee
training
56. Some projections put AR and VR investment in
retail at close to $30 billion by 2020 (from nothing
today).
Don’t wait for a “killer app” to force your hand.
Deciding how to play early, and which bets to place
now, will let retailers take the lead in this
technology.
Virtual and Augmented Reality Will Reshape Retail,
published September 09 2016
57. 1
2
3
4
5
Can AR and VR enhance my product exposure and shopper experience?
Am I willing to test in the market place early? Start Small…
What type of experience do I need to meet my business goal?
Which platform will best support my experience?
Who should be involved from my organization?