Wednesday, 03 April 2019 13:20

Augmented reality, virtual reality will rely on 5G to change customer experiences: report

By

Augmented reality and virtual reality will rely on 5G to change the customer experience inside and outside retail stores, according to one global analyst firm.

According to analyst Gartner, by 2020, 100 million consumers will shop in Augmented Reality online and in-store – and AR and VR have the potential to shake up the customer experience by individualising retailers’ offers and enabling customers to visualise products in different settings.

Gartner says 5G mobile network technology represents an opportunity to accelerate the adoption of AR and VR in stores.

Gartner cites its recent 5G enterprise survey which indicated that AR/VR applications of 5G attract the highest expectations for becoming drivers of new revenue, across all use cases and respondents.

The survey also noted that 5G capabilities can support multiple uses cases, such as real-time rendering for immersive video, shorter download and set-up times, and extension of brands and shopping experiences beyond stores.

“Gartner expects that the implementation of 5G and AR/VR in stores will transform not only customer engagement but also the entire product management cycle of brands,” said Sylvain Fabre, senior research director at Gartner.

“5G can optimise warehouse resources, enhance store traffic analytics and enable beacons that communicate with shoppers’ smartphones.”

Hanna Karki, principal research analyst at Gartner says retailers are under “increasing pressure to explain the purpose of physical stores, and take control of the fulfilment and return process for cross-channel execution”.

“At the same time, consumers are progressively defining the value provided by the experiences they receive from retailers. As a result of these pressures, retailers are turning to AR and VR to offer customers a unified retail experience inside and outside retail stores.”

A 2018 Gartner survey indicated that, by 2020, 46% of retailers planned to deploy either AR or VR solutions to meet customer service experience requirements. Additionally, the technologies behind these solutions have moved 15 to 30%  further along the Gartner Hype Cycle over the past 12 months.

“The impact of AR or VR in retail can be transformative,” said Karki.

“Retailers can use AR as an extension of the brand experience to engage customers in immersive environments and drive revenue. For example, IKEA’s Place app enables customers to virtually ‘place’ IKEA products in their space. Additionally, AR can be used outside the store after a sale to increase customer satisfaction and improve loyalty.”

According to Gartner, with VR’s immersive interfaces, retailers can create task efficiencies or reduce the costs associated with designing new products. They can also enhance the understanding of information through advanced graphical visualisation and simulation technologies.

Gartner cites pilots and implementation examples including Alibaba’s full VR shopping experience, virtual reality tours by Tesco, Adidas’ VR video to promote its outdoor clothing collection, and eBay Australia’s partnerships with Myer to create personalised stores.

LEARN HOW TO BE A SUCCESSFUL MVNO

Did you know: 1 in 10 mobile services in Australia use an MVNO, as more consumers are turning away from the big 3 providers?

The Australian mobile landscape is changing, and you can take advantage of it.

Any business can grow its brand (and revenue) by adding mobile services to their product range.

From telcos to supermarkets, see who’s found success and learn how they did it in the free report ‘Rise of the MVNOs’.

This free report shows you how to become a successful MVNO:

· Track recent MVNO market trends
· See who’s found success with mobile
· Find out the secret to how they did it
· Learn how to launch your own MVNO service

DOWNLOAD NOW!

Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments