VR in retail poses scalability problems

REUTERS/Yuya Shino

This story was delivered to BI Intelligence "E-Commerce Industry Insider" subscribers. To learn more and subscribe, please click here.

Brands and retailers are looking to leverage VR and AR technology with the hope that it will increase consumer interest in their products, according to Digiday.

Luxury brands including Dior and Tommy Hilfiger, and shoemaker TOMS have all recently rolled out VR experiences for customers in brick-and-mortar stores. Integrating physical stores with digital technology is expected to be the next big trend for retailers. 

However, implementing digital technologies like VR in-store can be hugely expensive and difficult to scale for large companies, Razorfish SVP of commerce and content practices Jason Goldberg told Digiday.

Businesses looking to utilize the technology beyond its novelty factor need to pay for multiple headsets per store location, as well as have the necessary computing power to run the devices. Furthermore, they need to ensure that the VR and AR apps work seamlessly and add value to their shopping experience.

In the near term, brands and retailers should focus on enhancing the user experience on smartphone apps. Because smartphone apps only require businesses to build the software, rather than having to buy the hardware too, they pose as a less expensive and scalable solution for retailers.

Smartphone apps also offer marketers greater access to tools such as push notifications, beacon information, and in-app messaging. One example of the power of apps can be found in Target’s Cartwheel app. Cartwheel allows users to scan product barcodes to discover coupons and savings. In 2015 the app drove $1 billion in sales from 13 million users across Target’s stores.

Every subscriber to the BI Intelligence "E-Commerce Industry Insider" newsletter received this story first thing in the morning, along with other insightful and informative content. To learn more and subscribe, please click here.