Over the past two decades, the face of commerce has fundamentally and drastically shifted. With the convenience and ubiquity of e-commerce, it seems that the days of the shopping mall and department stores — at least as they once were — are officially behind us. Led by the trailblazing of online shopping giants like Amazon and Alibaba, retailers of every size and type are digitizing their catalogs in an aim to meet consumer expectations and transform their businesses.
But traditional commerce stores are not going quietly into the night. Rather, retailers of all kinds are looking for new ways to reinvent and remain competitive. Even Amazon — the gold standard for online shopping — is opening new brick-and-mortar stores across the globe.
In fact, looking at the landscape of retail, e-commerce represents a minority portion of total sales. Market research company eMarketer recently forecasted that in 2020, e-commerce will account for just 16% of total retail sales. What’s more, the growth of e-commerce already appears to be slowing, with the same study projecting that in 2021, eRetail growth will be 17.1% (down from 19% growth the prior year), a downward trend in growth that is expected to continue. So where does commerce go from here — and what technology is positioned to change the way we shop, both online and offline?
In short, some consumers continue to shop at brick-and-mortar stores because they want to be able to see what they are buying and they want to talk to someone who is knowledgeable about the products to help them make an informed decision. But there is one huge technological shift that addresses these concerns and could vault e-commerce into a new level of competition with traditional retail experiences — the concept of virtual reality (VR) and augmented reality (AR).
Virtual reality is not a new concept, but recent advancements in artificial intelligence and graphics processing have given the technological concept new life. Concepts like 3D time-of-flight imaging as well as machine-learning platforms like the NVIDIA Jetson TX2 are changing the name of the game when it comes to virtual reality. Furthermore, AI camera solutions are creating new ways of personalizing virtual reality to make it that much more “real.”
In today’s modern VR solutions, users can enter into a digitally crafted environment and interact with their surroundings. They can have conversations with people, explore the environment around them, and make decisions that impact the construct of that reality. AR, on the other hand, takes what is physically present and adds virtual components to enhance your view — for example, you could look at a sign that is in another language and your display will translate it for you.
When it comes to commerce, virtual reality is providing customers an entirely new way to “try it before they buy it,” giving consumers a very tangible means to experience a product before they actually make a purchase. What does that look like in practice? Here are a few examples.
One concept that is gaining popularity is the idea of a virtual showroom. This idea uses virtual reality to create digital shops where users can easily view and compare products. It’s like a brick-and-mortar showroom but with literally endless possibilities. A company could theoretically showcase every single one of its products by using VR. A consumer could quickly compare two items side by side, change colors with a swipe of their hand, and even select the item and use augmented reality to see how it would look in their living room.
One major retailer already doing this is Lowes with its Innovation Labs Holoroom technology. This technology allows Lowes customers to see what new paint, appliances, fixtures, and more would look like when they’re actually put into place, and you can switch colors or styles instantly.
VR can also reintroduce a human element that is often missing from online shopping experiences. As mentioned earlier, one of the key reasons that consumers still go to brick-and-mortar stores is the ability to talk to a knowledgeable salesperson to help make a purchasing decision. But now, virtual reality can allow that salesperson to be there when you’re shopping online.
However, VR is not just about e-commerce. Many physical stores are looking for ways to leverage VR and AR to change their customer experiences. For example, imagine that you are shopping for a new set of golf clubs. Rather than just speaking to whoever happens to be nearby at your local sporting goods store, you could instantly talk to a golf club pro with deep knowledge of golf clubs and their performance. That golf pro could service dozens of locations by serving as a virtual shopping assistant. Augmented reality is also becoming increasingly popular. For example, IKEA has an app that allows customers to use their phones to quickly see how a piece of furniture would look in their home or apartment.
Today, virtual reality is becoming yet another technologically driven tool for retailers — both online and offline — to reach their customers and generate experiences that help lead to conversion. Whether via digital showrooms or through augmented reality in your own home, you can expect to see an increase in VR and AR solutions that will fundamentally change the way you shop and buy products.
