VR hardware costs are plummeting every year, lowering the barrier of access to the technology. As the number of ways in which virtual reality can solve unique problems grows, the technology is reaching the mainstream. Retail – the backbone of all economies – has historically been a nimble industry and has consistently adapted to new technologies to improve customer experience. The promise of VR in retail (vCommerce), in fact, may equal the role played by the internet in transforming the way we shop.
Presently, people are wary of public gatherings due to the fear of contracting Covid-19, now coined as ‘Coronaphobia’. Persistent socio-psychological stress is especially alarming for parts of the economy that depend on public participation and crowds for generating revenue. The increased opportunity cost for customers when stepping out to shop has increased manifold, and the only way physical retailers can lure customers back is either by providing a novel experience within the physical store, or going fully digital.
Virtual Reality can be used by retailers for either of the two pathways – to enhance the entertainment quotient of the store, or to go fully digital through a 3D virtual replica of the store. Combining the strengths of physical retail and ecommerce, Virtual Reality shopping is the next big disruption in the retail industry.
4 reasons why VR in the Retail Industry is going to be revolutionary
In an increasingly competitive market, where businesses from across the world can make bids for projects, presentation matters. In order to gain more attention from customers, retailers use novel experiences; the more immersive and interactive the experience, the more effective is the marketing. Virtual Reality is the ultimate immersive experience as it envelopes all our senses to create an alternate reality, bound only by the imagination of its usage.
1. Physical places as a psychological marketing tool
Retail stores are a massive investment and require daily upkeep and staffing. These expenses and overheads are only justified by the benefit they provide. By owning a ‘space’, retailers were essentially able to deliver a personalized sales experience, distinct from their competitors. With decreasing footfall, however, the benefits of owning a store are diminishing.
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VR provides the capabilities for turning the entire store into a virtual 3D space that customers can enjoy from the safety of their homes. These virtual twins are extremely realistic and interactive, more so than even real-life stores as VR can effectively overlay more information onto the user experience. This translates to flawless sales pitches, instant feedback on chosen products, and brand differentiation honed to a tee.
2. People love malls and walking experiences
Before the pandemic, customers preferred going to malls and expos for window-shopping products, before making a decision – after all, seeing is believing. Aspects such as dimensions, proportions, comfort etc. cannot be judged through online portals due to the lack of interaction or immersion. This makes traditional E-commerce more suitable for repeat purchases of packaged products, with bigger purchases being restricted to brick and mortar stores.
Malls are also an activity hub, providing passive entertainment to visitors. This aspect can be channeled through VR to create richer in-store as well as on-platform experiences, such as through the creation of a virtual retail agglomerate.
3. Malls feed into online sales, as people like to see and then buy
While a VR catalogue full of digital twins of real products is a viable sales strategy, the appeal of physical shopping cannot be fully eliminated. This is especially true for selling products when a higher degree of skepticism at play, usually due to technical barriers or high expense. Physical stores navigate this challenge by training salespersons to conduct product demos, handle FAQs, and troubleshoot basic issues. This human touch brings customers closer to making the purchase.
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Recently, Lowe’s – the American chain retailer of home improvement supplies – launched a VR demonstration and training simulation in their stores for customers to try out power tools. Using VR to enhance their in-store experience, the company is using the technology to create a safe and conducive environment for customer education, delivering a value-added experience through their retail journey.
4. Gamification in Retail – in-store VR and e-malls
With VR, the possibilities of designing customer experiences using principles of gamification are wide-ranging. Gamification can be applied to both virtual spaces and in-store VR experiences. One such example of VR in-store experiences can be witnessed at New York, in the Harry Potter store, which uses VR to recreate Hogwarts, the fictional wizarding school. This makes it possible for fans to engage with their favourite fantasy world, and consequently develop a closer brand allegiance to the franchise.
On the other hand, virtual reality can be used to create immersive twins of shopping malls. The layout, props, floor design, etc. can be recreated using virtual graphics. By adding the safety of in-home experiences to this mix, e-malls can facilitate greater accessibility for customers around the world.
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The Future of Retail: Virtual Reality Shopping
The added benefits that VR brings to the retail industry are numerous. Although the adoption of in-store VR experiences has superseded all other applications, the future of the retail industry is undeniably Virtual Reality Shopping. Inside fully virtual worlds that are accessible from all over the world, retailers can home-deliver the in-store shopping experience to customers. Malls, which are quickly becoming relics of the retailer’s past, have turned from cash mine to cash troughs for most companies and property owners. VR provides the possibility to simply ‘import’ the interior of malls onto a virtual space.
We at NextMeet are applying these principles to develop an immersive virtual conferencing platform, with a special focus on creating customizable VR spaces for users. The 3D virtual platform uses principles of gamification and spatial interaction to create the ideal marketing and networking environment. Inside NextMeet’s diverse ecosystem, a user can free-roam and interact with others on the platform just like they might in real-life malls, making the experience familiar and enticing.
Just like the advent of eCommerce, the migration to virtual reality shopping and vCommerce will be disruptive and drastic. With improving technology, retailers will be able to create personalized and enthralling moments for customers in their stores, making shopping in VR just as much about experience and memorability, as about product and price.
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