For years, the gaming industry held a “monopoly” on AR and VR technology. It was only a matter of time, though, before some savvy retailer saw an opportunity. And that let loose an explosion of its use that continues to be refined today.
Difference Between AR and VR Reviewed
Let’s begin with a quick review of AR and VR so we are clear on what is being talked about.
AR is a technology that enhances the real world via present digital information, images, and/or objects onto a person’s own physical environment. VR, on the other hand, immerses a user into an environment that replaces the real world.
VR presents interaction with the real world, while VR removes a user from the real world into a fully new environment.
AR is now used in the real world environment in such fields as healthcare, education, and retail (although this is changing pretty rapidly. VR is used for simulations that are removed from the real world and is now being embraced by these environments.
AR users interact with the real world via digital content. VR users are totally immersed in a computer-generated environment.
AR was the First Disruption to Retail
As early as 2018, Treasury Wine Estates began to use AR as an engagement and marketing tool.
Wine purchasers could scan the labels with their smartphones and be transported to the valley where the grapes were grown and continue to view the entire wine-making process, from harvest to bottling and distribution.
Since that time, a host of other retailers got on board.
Recent AR Experiences for Consumers
The obvious reason for retailers embracing AR is pretty clear. It allows them to offer unique experiences to their consumers that make them stand out in a crowded market, foster brand loyalty, and, as a result, boost sales.
Recent research, in fact, shows the following:
- Retailers that provide AR experiences are more likely to capture consumer attention aby 41%
- 66% of consumers state they want to use AR to help them while shopping and making purchasing decisions.
- 76% of consumers state they will be using AR in their purchasing journey during 2025
These experiences involve in-store shopping, brand campaigns, and visualizing products in their own physical environments.
Examples of AR
AR now allows consumers to “try before you buy.”
- Warby Parker pioneered (and was then followed by many other eyeglass retailers) the ability for consumers to try on glasses from home, using their computer’s camera and then selecting from the offered choices. They can select their frames before going in, shortening the in-store process.
- Clothing and makeup retailers allow customers to “try on” products before making an online purchasing decision
- Furniture stores have made it possible for customers to “erase” all of their current pieces in a room and place new pieces in those spaces.to see if they fit and improve the decor.
- AR in online dating allows members to go on dates together. There are straight, gay, bisexual, and trans dating apps that can let a couple view the streets of Paris, tour a museum, even experience a concert – all to be enjoyed and experienced together.
- AR also allows customers who are in stores to use their smartphones to locate items they want without having to walk the aisles to find them. Nike pioneered this, but it is now available in places like grocery stores too.
Now, all of these experiences are partial immersion. The customer is not actually in these places. That is reserved for VR.
So let’s take some of these examples and change them into VR experiences.
VR in Retail
Treasury Wine Estates: Instead of providing you with a virtual “tour” of the wine-making process, VR transports you to the vineyard where you experience it all first hand.
Warby Parker: Instead of trying on frames from your home, you are transported to the store where you view the entire selection, try on frames, and make your decision.
Online Dating: Rather than experiencing some place together, you both become avatars and actually visit these places together. Yes, this is happening right now.
Where is All of this Going?
It’s hard to say. But as the technology continues to be refined.
For example, VR headsets that now provide 360-degree views and high-resolution displays are already on the market, increasing the “realism” of the environment. There will be continued improvements in screens, processors, and optics.
In the gaming environment, players can now actually interact with objects and characters in many of the newer games, increasing the realism of that environment.
In the field of entertainment, VR will allow viewers to actually step into a movie they are watching
In retail, total immersion into a store will allow users to browse, try on, compare, and make wiser purchasing decisions.
Wireless headsets are on the horizon as well as metaverses, where users can create their own virtual environment, participate in activities, and interact with others.
Challenges Ahead for Retailers
While AR and VR offer exciting shopping experiences for customers, there is not a level playing field here. Given the current cost of the technology, small retailers cannot compete. Hopefully, as competition in the VR business itself expands, prices will come down and level that field.
The other challenge relates to headset use, as shoppers spend more time in a VR environment. Issues such as comfort, motion sickness, and eye strain will have to be addressed. There is even some talk about a virtual headset being provided on a user’s device screen, eliminating the need for a physical headset altogether.
All in all, AR and VR are here to stay, and retail shopping will never be the same.