Technology

Putting AR, VR to work in the retail chain

Anything that can make goods faster to obtain, less expensive to buy, easier to find, or better suited to the purchaser will find its way to the front of the retail experience and AR and VR tech can play a big role.

Photo by istock.com

November 1, 2022 by David Chen

In retail, convenience is essential. It's why mail order catalog shopping displaced the rural general store in the late 19th century. It's why today, more than 30% of the world's population are considered digital shoppers. It's also why online retail has become a $768 billion (as of 2021) industry in the United States, one that is expected to nearly double in size in the next four years.

Anything that can make goods faster to obtain, less expensive to buy, easier to find, or better suited to the purchaser will find its way to the front of the retail experience. Merchants who don't step into new ways of achieving these aims often find themselves eventually losing share.

This truism of the industry is once again being affirmed by augmented reality. AR technology isn't new; it has been around in various forms since the 1960's, finding its way into jet fighters, factories, schools, healthcare and, of course, video games.

With the advent of smartphones, however, the uses for AR have exploded. Navigation, tourism, entertainment and fitness are just some of the AR applications brought about by the smartphone revolution.

AR adds value

AR can be used primarily in two ways: to capture reality, and to enhance it. Capture involves scanning a person, room, building or scene using 3D imaging. Dimensions, shapes, colors, depth, orientation, direction and movement are all part of the capture capability of AR.

Recognition, whether anonymous or for purposes of identification, is also part of capture. The retail checkout is a perfect example of recognition; not only facial recognition for payment, but also for item identification that enables faster scanning of products, particularly food items. Item recognition, in fact, can be up to 10 times faster than barcode scanning.

Enhancement, the other use for AR, involves placing an object into a real-world room or scene. Made popular in part by the introduction of Pokémon GO, enhancement is changing the way we perceive the world. In GPS and tourism apps, enhancement is allowing points of interest, goods and services, traffic hazards and navigation aids to be superimposed on all kinds of screens — not only those on smartphones, but also on windshields of cars, trucks and commercial vehicles.

Wide application

For retailers, AR and even virtual reality, best known for headsets and as the home of the metaverse, are ready to create immersive, customized and most of all, more convenient shopping experiences.

Back in 2019, IKEA was an pioneer in this pursuit, introducing its IKEA Place app that allowed consumers to virtually view furniture in their homes before purchasing. Since then, the uses have exploded. SizeStream, a maker of fitting room technology, captures the body measurements of clothing buyers using a dedicated mobile device. Specialty retailer PacSun transformed the store windows of its SoHo store in New York with AR to transfix passersby and entice new customers.

People are using AR to try before they buy, using their smartphone camera. Sephora Virtual Artist is a smartphone app that lets customers try products on a scan of their face. They can get a virtual makeover, star in their own tutorials, and share the results with friends. 3D scanning, another use for AR, allows retailers to quickly reconstruct virtual duplicates of products for uploading to retail websites.

New customer experiences

VR is currently experienced most often through headsets, but is soon expected to expand to a new generation of VR glasses. VR can support any number of uses in retail; demonstrations and live shows will allow customers to experience products in 3D, even walking around products and displays as well as through showrooms and stores.

Soon people will be able to engage with products in the virtual world, making purchases in real-time using their personal avatar. The ability to browse, compare, and pick up items virtually will undoubtedly create new possibilities to transform the shopping experience and impress buyers.

The technology required for reconstructing a flagship store in the metaverse is already here, and surprisingly easy to use. 3D imaging devices can scan an interior in exquisite detail, enabling shoppers to walk through virtually using their VR devices. 3D reconstruction is for more than customer use; managers can utilize the metaverse reproductions for employee training, planning and merchandising, and other internal purposes.

Bottomline benefits

One of the biggest sources of expense for retailers is the cost of returns — but AR and VR can significantly reduce this customer practice. Digital scans, virtual fitting booths, room views, 360-degree product renderings and other 3D capabilities often not only pay for themselves, but also significantly raise customer satisfaction — all while reducing expense and increasing profitability.

In a variety of retail segments, AR and VR can be transformative. Buying expectations are changing, and customers are flocking to new experiences. Retailers that embrace 3D AR/VR are sure to gain a competitive advantage. Goldman Sachs estimates the virtual world will soon be an $8 trillion business opportunity, and retailers should take note. There is nothing virtual about the benefits of this evolving trend, or the possibilities it presents.