Article

Augmented reality for retail, in plain English

Augmented reality oozes potential for retailers, with devices that do not restrict the user's sight solely to computer-generated imagery.

October 29, 2014

By Andrew Teacher

Just over 20 years ago, virtual reality was the next big thing in gaming. Industry giants, Sega, had convinced themselves that huge head units containing internal LCD screens displaying clunky polygon landscapes were the future. The planned 1994 launch of Sega VR, which tracked head movements, never happened. Instead, the nineties continued to be defined by spiky blue hedgehogs and fat Italian plumbers.

Things have come a long way since Sonic and Mario however, and augmented reality (AR) shouldn’t be confused with anything like that. Although it could be described as a cousin of virtual reality (VR), rather than creating entire virtual landscapes inside a computer, AR layers computerized imagery on top of what you see in the real world.

The technology itself has been progressing since the early 1990s and is now at a point where mobile devices can accommodate it. The gaming industry’s current darling is Oculus, developers of Rift, a modern day equivalent of Sega VR. The company, which was acquired by Facebook in March 2014 for $2 billion, has since announced a tie-up with Samsung to create the mobile Gear VR headset.

Samsung claims to fully immerse smartphone users in cinematic virtual reality, with partners such as Imax and Dreamworks providing a wealth of cinematic and cartoon content to interact with.

Such face-hugging devices are likely to be attractive for immersive gaming or film experiences. But real world interaction could be more problematic, as Google Glass users have found.

Clearly, such technology can be classified in many ways and directly links to other opportunities — such as digital payment systems and mapping technology. Wells Fargo has already been testing Oculus Rift VR headsets in its San Francisco-based lab as one way of improving customer experiences in its branches.

And this is where augmented reality oozes potential for retailers — albeit with devices that do not restrict the users sight solely to computer-generated imagery.

Modern smartphones and tablets contain enough gadgetry to run AR apps, meaning there’s potential for shoppers to use the technology without the need for bulky, expensive visors.

The camera inside a phone or tablet recognizes features of the real world and is triggered to overlay information. So a wave of your phone along a row of shops or cafes could superimpose an array of information from opening times to customer reviews. Such technology can also be used to show what buildings previously looked like, or help make a visit to a gallery more enlightening.

Allowing a virtual world to enhance the real one in this way could have profound implications for consumers. Unlike many other innovations, it’s something that drives people towards physical interactions. Major British institutions like the V&A and British Museum have already been using AR to engage younger visitors.

At the cutting-edge, Intel is developing a Magic Mirror that will allow customers to virtually try on an outfit without the time and hassle of the traditional changing room. Combining new technology with maturing 3D body-scanning technology ensures customers get an accurate impression of fit as well as the look of the worn garment. Similarly, Sephora and ModiFace developed a 3D augmented reality makeup and anti-aging mirror that can simulate cosmetics on a user’s face in real-time, enabling customers to virtually try out products quickly in a store. This is one of the many applications of the technology that is likely to drive people towards, rather than away from, physical stores. Other fashion-related applications could include shoes, accessories, jewelry and cosmetics. Roll-out may be up to four years away, however.

Of course AR-type experiences can also be delivered in the home using software and a webcam, albeit with less exciting results. While it can be used for fashion (eBay recently announced its acquisition of PhiSix, a company that develops 3D visualization and simulation technologies for clothing), more context-dependent applications seem to offer a brighter future: paint color schemes and home furnishings, for example. IKEA has developed an application for this purpose. While this in-home experience would suggest a footfall-reducing effect, there could well be ways to encourage customers to scan their homes and head in-store for specialist design help.

(Excerpted with permission from "Retail's Digital Future," published by Addleshaw Goddard and BCSC.)