Revenue related to virtual reality technology initiatives is expected to jump by 3,000% over the next four years, and could generate as much as $1.8 billion for retail and marketing companies in 2022, according to a new report from PYMNTS.com called “Virtual Reality in Retail: 2019 and Beyond."
The US report suggests that use of VR and similar technologies by retailers could help consumers to do more research before they buy items, whether by trying out products through VR experiences before they visit stores, or by using in-store technologies to help them gauge the fit of fashions or different make-up looks.
While augmented reality features in mobile apps have become more common, VR features may not become prominent so quickly in mobile form. Smartphone-based VR features, however, could help supplement in-store VR services and shopping experiences, the report said.
The report cited US department store retailer Macy’s as one retailer that has embraced virtual reality technology and similar innovations to reinvent store experiences. Macy’s has used smart mirrors in dozens of stores, and also late last year announced amjor expansion of its application of VR in store to help with furniture shopping. That use case allowed shoppers to employ VR to see furniture items in different virtual room settings.
For Macy’s, using VR isn’t just about enhancing the store experience, but also part of how it is using various technologies in an attempt to change perceptions about the Macy’s name and department stores in general, the report noted.
RPA Perspective This report, like others in recent years, also noted that retail shopping use cases and applications for retailers are still in their infancy, and perhaps years from a significant growth spurt. Although the projected 3,000% growth projected appears impressive, it needs to be placed in a context of little to no growth to date.
Brands like Macy's and Timberland are employing VR-equipped smart mirrors for everything from product testing to checkout, while clothing retailers like Tommy Hilfiger and The North Face are using headsets to provide 360-degree outdoor views, right in the middle of the mall.
Meanwhile, online retailers like Amazon and Alibaba aren’t letting this technology pass them by, especially as VR headsets become more prevalent in consumers’ homes: The number of VR users worldwide jumped from 85 million to 171 million in 2018. With more at-home shoppers curious about this hardware, VR is also gaining its place in e-commerce as a way for consumers to have a full, tactile experience in an online store.
As more retailers adopt VR for different uses, it will be interesting to see how that affects the use of mobile smartphones during in-store shopping. Right now, mobile devices are frequently and widely used for research during the shopping process, but that might lessen if more personalised research and planning could be accomplished via VR before shoppers ever leave their homes, the report noted. However, that's not likely for a very long time, the report also said.
