The changing retail landscapeBrick and mortar stores are on the cusp of significant and fundamental transformation. Despite the fact that physical stores are still the central point of shopping, there is a tidal wave of digital innovations that is...

The changing retail landscape

Brick and mortar stores are on the cusp of significant and fundamental transformation. Despite the fact that physical stores are still the central point of shopping, there is a tidal wave of digital innovations that is changing how and where people shop.

Gone are the days when people would look towards the physical store for offers, special promotions and good deals for their favorite products. Today’s informed consumers research products and shops anywhere, anytime. With the widespread adoption of online shopping, the ability to find the best deal is in the control of the consumer. Similarly, with increased penetration of smartphones usage, shoppers can instantly search goods, see product reviews, find the best price and shop just within a few clicks.

It has become feasible thanks to mobile innovation. As we look to the future, the physical and digital worlds will be increasingly intertwined. Thus, retailers are increasingly looking at various disruptive technologies such as Augmented Reality (AR), Virtual Reality (VR), Artificial Intelligence (AI) and the Internet of Things (IoT) that offer possibilities for the convergence of physical and digital environments. However, it seems there will not be the one technology choice that is ‘winning’.

Walmart’s technology incubator, Store ?8, has announced a competition looking for VR solutions. Amazon is looking to expand its AR team. It obviously makes sense after Amazon recently acquired Whole Foods for $13.7 billion.

Augmented Reality

Augmented Reality technology has become a hot topic last year with the introduction of Pokémon Go. Many brands and retailers have been hopping on AR bandwagon trying to engage their customers in a new way. How can consumers use AR for shopping?

Using a camera of their smartphones customers can scan object and dig into details of products, and receive special offers. Apart from product information and customer reviews, they will see on-screen additional information such as recipes, price comparison, nearest stores or alternative options.

This information is available within seconds and it allows customers to take better decisions.

Many companies are now adopting this technology because it works, it increases sales. Big brands like Coca-Cola, Mondelez, Nestle and many others have already been using this technology for some time. Now AR technology becomes closer and is accessible to smaller brands too. In our previous blog dedicated to CPG brands we wrote that brands can create their AR experiences using ROAR platform. No technical skills are required.

What’s for retailers?

Meanwhile, retailers have been using AR to boost engagement. Walmart launched interactive AR campaigns aiming to drive customers into brick and mortar stores. Tesco grocery chain used AR in-store and online to change how customers interact with products.

According to Boston Retail Partners (BRP) study, 3% of retailers surveyed have working AR, and 8% have AR that needs improving. By the end of the decade, 33% of retailers intended to use augmented reality (AR).

AR technology drives a very unique consumer engagement and exciting customer experiences. It enhances the retail experience and provides vast opportunities for retailers. Below are several examples of AR applications.

In-store. Retailers can use AR packaging to engage customers as they shop in-store. By scanning a product package customers can instantly get lots of valuable information that will help make an informed decision.

Online. Not only within the store, customers can scan the package at home and see the same information on screen of mobile device. Moreover, they will have an opportunity to order online their favorite consumer packaged goods and get them delivered easily.

Print. Retailers can excite their customers augmenting their leaflets, weekly circulars or Free-Standing Inserts. While hovering a device over CPG image, shoppers can view product video and product information. Mobile coupons can be displayed on screen, and influence consumers to buy.

Advertising. Thanks to AR geo-notification feature retailers can send out messages to existing and potential clients who are in the vicinity of retail stores. It could be messages about new products that become available; or, as an option, information about new sales and hot deals.

Using AR analytics, retailers can get more insight about shoppers’ preferences. Based on history of AR interactions or previous purchases retailers can make decisions whether to promote a specific product or product group. Analyzing which areas of the store see the most traffic would also allow to better organize the store and adjust business practices accordingly.

What’s more, AR technology enables to customize content by cities, regions and countries. It can be valuable for retail chains that are spread across different regions. So shoppers will see rewards and incentives that are available for the particular region.

The opportunities are really endless, and retailers who continue to look for additional opportunities to enhance the customer experience will have a better chance to succeed.

In not too distant future, when augmented glasses become widespread, consumers will be able to walk through the aisle and see foods that are gluten free or a good fit their diet. AR technology has a great potential and will definitely impact the store of the future.

If you’re interested to find out more about opportunities of ROAR Augmented Reality Platform for Retailers, please feel free to reach out to us at info@theroar.io

How Retailers Can Benefit From Augmented Reality With ROAR was originally published in ROAR?—?Augmented Reality Platform on Medium, where people are continuing the conversation by highlighting and responding to this story.

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