How virtual and augmented reality are transforming the retail world
The retail world is experiencing a major transformation! As customers increasingly look for unique and seamless shopping experiences, virtual and augmented reality technologies have become indispensable for boosting engagement. In fact, 75% of shoppers now expect augmented reality experiences¹.
When virtual reality and augmented reality converge with retail, stores become phygital. Through its innovation program, Orisha Commerce anticipates trends and facilitates the digital transformation of unified commerce players. Discover the key technologies, challenges, and opportunities of this reinvented landscape.
Augmented reality: transforming the experience
What is augmented reality?
Augmented reality (AR) refers to a virtual interface where reality is enhanced with virtual elements². In retail, augmented reality enables customers to try products remotely with highly realistic renderings. This means consumers do not need to visit a point of sale; their journey becomes fluid and immersive. Retailers also leverage this technology to collect data from these interactions.
Examples of successful applications
There are numerous successful applications of augmented reality in retail:
1. Fashion Sector
Customers can use augmented reality to virtually try on clothes, shoes, or accessories before making a purchase. This can be done through a mobile app or in-store using a smart mirror. This approach reduces the need for physical inventory and increases customer engagement. Gucci has incorporated augmented reality into its app, allowing customers to try on sneakers by simply pointing their smartphone at their feet. The system also supports virtual try-ons for glasses and makeup.
Additionally, Gucci has installed augmented reality mirrors in some stores, enabling customers to virtually try on clothes and accessories without having to change.
Augmented reality can also be used to offer personalized recommendations based on preferences and past purchases. For example, a customer can point their phone at a dress and instantly see similar items or complementary accessories.
2. Home Sector
Augmented reality allows customers to visualize furniture or decor elements in their home before purchasing. This helps them make more confident decisions, reducing the risk of returns. Augmented reality can also provide interactive tutorials for DIY projects.
IKEA has revolutionized the furniture buying process with its IKEA Place app, which uses augmented reality. Customers can project true-to-scale 3D furniture directly into their living rooms via their smartphone to see how it fits in their space. The app also allows users to test different colors, sizes, and various layouts.
3. Sport Sector
Thanks to augmented reality, customers can virtually try on equipment such as helmets, protective glasses, or backpacks. Augmented reality also provides detailed product information, including materials, features, and benefits. Simply scan a product with your phone to access the information. Nike has developed the Nike Fit app, which uses augmented reality to enable customers to scan their feet with their smartphones to find the perfect shoe size.
4. Automotive Sector
Brands use augmented reality to let customers customize and visualize vehicles in 3D before purchase, similar to BMW with its immersive app. Customers can even project their personalized model in full size in a virtual showroom and explore the interior as if they were sitting inside.
5. Electronics Sector
Augmented reality makes it easier to understand how electronic devices work. It allows for comparison of different products based on their features and benefits and even the creation of interactive user manuals. Apple has integrated augmented reality into its website to showcase its products before purchase. Customers can project an iMac, iPad, or HomePod directly into their homes in augmented reality to see how they would look in real life.
Orisha Commerce provides the integration of augmented reality solutions into your eCommerce site and mobile apps, offering an interactive and personalized shopping experience.
Augmented reality: a booster of engagement and conversion
Augmented reality encourages consumers to spend more time on an app or in-store, enhancing engagement.
According to a 2018 study, 33% of respondents were interested in trying on clothes from home via an app without having to visit a store³. Virtual try-on reduces hesitation and lowers the return rate. Moreover, visualizing products and their features boosts consumer confidence and contributes to increased sales in the real world.
Finally, this immersive technology creates the famous Wow effect that all brands seek, immersing consumers in a unified, seamless journey.
Virtual reality: immersion and interaction
What is the difference between virtual reality and augmented reality?
Virtual reality (VR) is an older technology. The difference with augmented reality lies in how it interacts with the physical environment. While augmented reality enhances the real world, virtual reality immerses the user in a totally virtual 3D universe through a headset and sensors. As early as 2015, 66% of consumers expressed interest in brands offering virtual shopping⁴.
Examples of successful applications
1. Fashion Sector
Using virtual reality, brands can create 100% virtual fashion shows. Consumers can discover the latest collections from anywhere in the real world, and the creative possibilities are endless. This is what Balenciaga did. The brand used virtual reality to present its Fall 2021 collection. It created a video game where users can explore a futuristic universe and discover clothes and accessories worn by digital avatars.
2. Home Sector
To allow consumers to explore different layouts from home, retailers create virtual showrooms using VR. IKEA has developed a virtual reality application that allows users to explore and modify kitchen layouts in 3D before purchasing.
3. Sport Sector
Retailers offer immersive adventures thanks to virtual reality, such as hiking, climbing, or skiing. In some Decathlon stores, customers can put on a virtual reality headset and test trekking shoes in simulated real conditions. Decathlon also offers 3D configurators online and in-store, allowing customers to explore each model from all angles and adjust components to their needs in the real world.
4. Automotive Sector
To discover a car’s features and performance before visiting a dealership, customers can take virtual test drives using virtual reality. Brands can also create virtual showrooms. Audi has innovated by integrating virtual reality into its dealerships. Audi VR Experience is a virtual showroom where customers can explore each model in 3D, personalize the color, materials, and options. The brand has also developed virtual reality driving simulation applications to test the car in different environments.
Orisha can integrate virtual reality solutions to create immersive and interactive experiences, accessible from your website or mobile applications.
Why do virtual reality appeal to brands and customers?
Brands integrating virtual reality into their strategy offer total immersion and strengthen the emotional connection with their customers. Virtual reality can reduce certain costs by eliminating the need for physical inventory or showrooms through creating a virtual world. This technology also facilitates data collection and personalization.
From a customer’s perspective, virtual reality allows for a hassle-free try-on, reduces uncertainties before purchase, and saves time discovering products. It is perceived as a fun experience with a gamified and interactive aspect that increases engagement.
Immersive technologies transforming retail
How do augmented reality and virtual reality work?
Augmented reality uses various elements of the real world, such as sensors and cameras. Their role is to capture and film the physical environment and track user movements. Augmented reality also uses 3D rendering engines to generate and integrate virtual objects into the real world through glasses and headsets that project virtual images into the field of vision. Artificial Intelligence and Machine Learning improve movement tracking and object recognition in real time.
In terms of virtual reality, this technology uses headsets and immersive devices that display an entirely virtual world, cutting the user off from reality. Motion tracking allows users to move naturally, while graphic engines create ultra-realistic virtual environments.
Essential tools for integrating AR and VR in retail
Development engines and immersive 3D platforms are the basic tools for creating immersive augmented and virtual reality experiences. Software development kits (SDKs) and APIs facilitate the integration of immersive technologies into mobile and desktop applications. There are also ready-to-use solutions for retail, allowing brands to integrate AR and VR without coding. Thanks to its APIs and interoperability with AR/VR solutions, Orisha Commerce facilitates the adoption of these technologies for retailers.
What future for immersive technologies in commerce?
By 2030, immersive technologies will have profoundly transformed commerce. With the rise of mixed reality (virtual and augmented, combined with real), it will be possible to navigate between a virtual environment and an overlay of interactive elements on the real world. Stores will integrate immersive technologies (interactive mirrors, AR kiosks), and virtual events will become the norm, especially for launching exclusive collections.
The challenges and opportunities of immersive experiences
Technological integration challenges Although these technologies are developing, there are still technical limitations not to be overlooked. They are expensive (a few thousand euros for an immersive interface or headset) and still lack comfort (heavy headsets, a feeling of discomfort due to disorientation).
Additionally, virtual and augmented reality platforms lack standardization. Each ecosystem has its own SDKs and constraints. Therefore, developing a multiplatform immersive experience is still long and expensive.
Another challenge is the dependency of immersive experiences on infrastructures such as 5G and the Cloud. These experiences require a lot of bandwidth and computing power for real-time 3D rendering. Without robust networks, they can be slow or of poor quality. Developing a virtual and augmented reality experience requires financial investments in software, 3D modeling, and hardware. Moreover, virtual and augmented reality collect a lot of sensitive data: facial scans, body measurements, purchase behavior… The risk of data leaks exists and must be anticipated.
Personalization and efficiency
Immersive technologies are a source of customer data to exploit. This data is collected in real-time for full visibility of the performance of implemented strategies. Corrective actions can thus be immediately deployed. The collected data also offers advanced personalization, such as tailored recommendations or immersive experiences based on purchase history.
But these technologies are also a gain in efficiency for retailers!
- Reducing product returns;
- Optimizing merchandising;
- Automating customer advice.
Retail and immersive technologies: what to expect tomorrow?
These significant changes will lead to a fusion of digital and physical towards mixed reality. Consumers will naturally move from a real store to a virtual environment, and physical stores will become experience-centric spaces.
To adapt, retailers must adopt a phygital strategy today:
- Digitalization of the point of sale;
- Immersive showrooms and virtual try-ons;
- Personalization and data;
- Team training.
More than a trend, phygital commerce redefines the customer experience, bringing a touch of magic. Far from replacing traditional commerce, it enriches it with immersive technologies. Virtual and augmented reality connect online and offline for a mixed reality and truly omnichannel commerce.
Discover the ultimate unified commerce experience
Sources
² Futura Sciences – What is augmented reality ?
