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AR/VR retail 2018
1.
Bridging Retail Stores & VR Leandro Agrò and NTT Data | Milano, 15 January 2018
2.
© DESIGN GROUP ITALIA Index 01 / VR: Introduction The State of Art Market players and Consumers trends VR’s stories The AR way SmartPhones are powering VR (and AR) 02 /
VR @Work Use Cases 03 / Opportunity Roadmap AR/VR needs in Retail store Focus on Utility players Roadmap 2
3.
© DESIGN GROUP ITALIA 01 / Introduction 3
4.
© DESIGN GROUP ITALIA State of the Art 4 - VR has a 50y long history behind - In 2014 Oculus Rift defined the headset hardware reference, boosting the competition
5.
© DESIGN GROUP ITALIA What is VR 5 Virtual reality (VR) is a computer technology that uses glasses, headsets or multi-projected environments, to generate realistic images, sounds and other sensations that simulate a user's physical presence in a virtual or imaginary environment. VR: from the technology point of view VR: from the user point of view A person using virtual reality equipment is able to "look around" the artificial world, and with high quality VR move around in it and interact with virtual features or items. * While in a VR session, the user is totally blind and isolated respect the real world.
6.
© DESIGN GROUP ITALIA Dreaming VR since 1950… 6 EARLY HEADSET: TELEYEGLASSES (1963) Hugo Gernsback inventor of the term “science fiction”. Gernsback
described his “teleyeglasses” for a Life magazine article published in July 1963, when he was 78. EARLY 3D ENVIRONMENT: Sensorama (1962) The Sensorama was a machine that is one of the earliest known examples of immersive, multi-sensory technology. Morton Heilig invented and dubbed it "Experience Theater”. Prototyped in 1962, the Sensorama was a mechanical device, which still functions today. TELEYEGLASSES SENSORAMA
7.
© DESIGN GROUP ITALIA 30 years later… VR Stories for the masses (since 1992) 7 NEAL STEPHENSON (1992): SNOW CRASH STEPHEN KING (1992): THE LAWNMOVER MAN 30 years after Sensorama
the idea of virtual reality finally emerge in the consumer mind, mostly because two “cults” stories. 1) SnowCrash is a cyberpunk masterpiece where the author –Neal Stephenson- introduced “the Metaverse” a sort of virtual reality-based massive Internet. Resembling a massively multiplayer online game (MMO), the Metaverse is populated by user-controlled avatars as well as system daemons. 2) The Lawnmover Man got a massive response as sci-fi movie, where a protagonist – leveraging the 3D world- become a vindictive god. In Lawnmover Man, the device that Is needed to perform actions in the virtual world, is a sort of giant wheel.
8.
© DESIGN GROUP ITALIA 20 years later… 2012 The Oculus Rift 8
9.
© DESIGN GROUP ITALIA 2014: From Oculus to Facebook 9 PSVR PLAYSTATION VR HEADSET Born on kickstarter in 2012, Oculus was a big success. “Zuck” is a VR’s enthusiast and Oculus was later acquired by Facebook for 3Billions USD. From 2014 to 2017, about 250K Oculus headsets were sold. Why? Facebook may own three of the biggest apps — WhatsApp, Facebook, and Messenger — but it has relatively little influence over the development of the mobile devices and operating systems on which they depend. Instead, it is Apple and Google that have set the standards and driven the adoption of what is now the world's dominant computing platform. Facebook, with its focus on apps, has largely been a passenger.
10.
© DESIGN GROUP ITALIA Market players and consumer trends 10 - Google cardboard - Few big players and thousands of different plastic headset -
Q3 2017 about 850K VR headset sold - VR trends compared to other tech
11.
© DESIGN GROUP ITALIA 2014: Google’s answer to Facebook 11
12.
© DESIGN GROUP ITALIA VR run on software and cardboard (plus the phone that the user already has) 12 Through March 2017, over 10 million Cardboard viewers had shipped and over 160 million Cardboard App downloads had been made.
13.
© DESIGN GROUP ITALIA If VR is a smartphone + cardboard, it’s a business for Samsung too. 13
14.
© DESIGN GROUP ITALIA SONY Playstation VR: For the players 14
15.
© DESIGN GROUP ITALIA Run VR Like a pro HTC Vive: the most complete HW/content environment 15
16.
© DESIGN GROUP ITALIA VR Christmas sales worldwide: Q3 2017 16 Source TechCrunch Sony shipped 490,000 PlayStation VR headsets (399 USD) Oculus shipped 210,000 Rift headsets (399 USD) HTC shipped 160,000 Vive units (599 USD).
17.
© DESIGN GROUP ITALIA VR’s Stories 17
18.
© DESIGN GROUP ITALIA From NASA concepts to THE SIMPSON: VR it’s now a thing for consumers 18
19.
© DESIGN GROUP ITALIA VR as a Silicon Valley affair: Facebook vs Google 19
20.
© DESIGN GROUP ITALIA VR it’s now a thing for (future) business too 20 Mark Zuckerberg has said. 2016 was year zero of Virtual Reality consumer devices launching in the market. Since 2018 6+ million VR headsets were sold, from 5 companies including Facebook and Google.
21.
© DESIGN GROUP ITALIA The rise of gamers army 21
22.
© DESIGN GROUP ITALIA The headset tsunami 22 Carl Zeiss
23.
© DESIGN GROUP ITALIA The headset tsunami 23
24.
© DESIGN GROUP ITALIA 24
25.
© DESIGN GROUP ITALIA STAR WARS VR: A huge delusion 25
26.
© DESIGN GROUP ITALIA 26 Comparing two different tech hype curve (people attention)
27.
© DESIGN GROUP ITALIA 27 Samsung Note 8 vs VR
28.
© DESIGN GROUP ITALIA 28 iPhone X vs VR headsets
29.
© DESIGN GROUP ITALIA From tech to Experiences (content) 29 Text here
30.
© DESIGN GROUP ITALIA 30 Video 360°: Another smartphone powered immersive opportunities. FITT360 - The First 360°
Neckband Wearable Camera Unobtrusive and effortless way to capture and share your moments in 360° true First-Person-View.
31.
© DESIGN GROUP ITALIA The AR way 31
32.
© DESIGN GROUP ITALIA What is augmented Reality (see trough glasses) 32 Text here
33.
© DESIGN GROUP ITALIA 33 HOLOLENS: Breakthrough hardware from Microsoft Official release 2016
34.
© DESIGN GROUP ITALIA 34 HOLOLENS: Precisely placing virtual objects in real space
35.
© DESIGN GROUP ITALIA 35 HOLOLENS: Virtual screens everywhere. Experiences mapped in your living room.
36.
© DESIGN GROUP ITALIA 36 HOLOLENS: Collaboration & Sharing in a “mixed” digital/physical environment
37.
© DESIGN GROUP ITALIA 37 HOLOLENS: Collaboration & Sharing in a “mixed” digital/physical environment
38.
© DESIGN GROUP ITALIA 38 HOLOLENS: R.I.P. Unfortunately, after years, Hololens still far away to become a real product. Microsoft itself has no clear future plan and also finding the devices it’s not easy at all. Hololens was a relevant step into AR technology, but still an R&D
result that nobody can actually use to develop a business’ project. Many of the use cases look very similar to those of Microsoft’s HoloLens, a $3,000 USD augmented-reality headset that’s still very much under development. HoloLens is still being pitched to developers—not consumers—nearly three years after its unveiling.
39.
© DESIGN GROUP ITALIA 39 MAGIC LEAP: Watch out to the AR whale
40.
© DESIGN GROUP ITALIA 40 MAGIC Leap: finally AR found a champion?
41.
© DESIGN GROUP ITALIA 41 MAGIC Leap: finally AR found a champion? Reality is augmented only insofar as you're looking within a relatively limited space in front of you.
42.
© DESIGN GROUP ITALIA 42 MAGIC Leap: just another huge failure like the Google Glass? Released in 2012/3, Google Glasses, quickly disappeared from people attention Battery life and cultural acceptability destroyed any available use case
43.
© DESIGN GROUP ITALIA SmartPhones are powering VR (and AR) 43
44.
© DESIGN GROUP ITALIA 44
45.
© DESIGN GROUP ITALIA 45
46.
© DESIGN GROUP ITALIA Augmented Reality’s classics are a perfect fit on a smartphone 46 Text here
47.
© DESIGN GROUP ITALIA Smartphones are the actual cornerstone of both AR and VR 47 Text here
48.
© DESIGN GROUP ITALIA 02 / VR @work 48
49.
© DESIGN GROUP ITALIA Use cases 49
50.
© DESIGN GROUP ITALIA 50 The next revolution in retail: AR will sell jeans and VR will sell dreams The current uses of VR in retail is being used to increase in-store engagement by providing customers a virtual experience that is complementary to the store experience. Lowe’s let shoppers customize a kitchen and then visualize it using a VR headset. eBay
created a VR shopping app for an Australian department store. Macy’s launched a virtual store in China with Alibaba for Singles day. (Macy’s doesn’t have a physical retail store or an e-commerce site in China – its first entry into the biggest market in the world was through a virtual store).
51.
© DESIGN GROUP ITALIA 51 Lowe's Holoroom The Lowe's Holoroom is a virtual reality home improvement design and visualization tool that empowers homeowners with an immersive, intuitive experience in the room of their dreams. Visualizing a home improvement project is hard - the Holoroom
is here to help. The Lowe's Holoroom was introduced in 2014 as the first concept from Lowe's Innovation Labs, and was available for six months in two Toronto stores. The next iteration of the Holoroom was available in 19 stores across the U.S. beginning in November 2015. Lowe's Innovation Labs will continue to refine and evolve the experiences as technology continues to evolve and we gather real-time feedback from customers and employees. http://www.lowesinnovationlabs.com/holoroom/
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© DESIGN GROUP ITALIA 52 VR for Marketing and Storytelling Virtual reality’s ability to transport a person to a completely different environment allows companies to transform their message and connect to potential clients. McDonald transformed the iconic happy meal box, to a virtual reality viewer powered by customers’ smartphones. “Meet Happy Goggles - a unique VR viewer made from an ordinary Happy Meal box. We believe the possibilities are endless.” http://www.happygoggles.se/en/
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© DESIGN GROUP ITALIA 53 NYT VR: How to Experience a New Form of Storytelling From The Times Through virtual reality, The New York Times puts you at the center of the stories that only we can tell. Experience our award- winning virtual reality films by New York Times journalists in an immersive 360- degree video experience. For the most immersive NYT VR experience, watch our VR films with Google Cardboard. If you don’t have one, you can still watch our VR stories on your smartphone. We’ll be posting new virtual reality films every
month or so.
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© DESIGN GROUP ITALIA 54 Virtual reality lets Chinese customers shop Macy’s New York store on the world’s biggest shopping day. Macy’s took part in its first Singles Day by working with Alibaba on a virtual experience. In late October, Alibaba started selling 150,000 cardboard VR headsets, similar to Google Cardboard, for $0.15. Customers could use them to virtually visit NYC and shop Macy’s famed New York flagship store. Other international brands, including Target, CostCo, and Tokyo Otaku Mode, are also doing VR shopping with Alibaba https://youtu.be/wP2SXkcMhX0
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© DESIGN GROUP ITALIA 55 eBay virtual reality based MYER store eBay, Australia’s largest marketplace and iconic Australian retailer, Myer have joined forces to provide a glimpse into the future of shopping by creating the world’s first Virtual Reality (VR) Department Store. The shopper selects their areas of interest at the beginning of the experience and the store is custom built around these needs, making the most relevant products visible first. Within the experience more than 12,500 products from Myer can be browsed, selected and added to cart. https://youtu.be/yAuiXhJPnr8 https://vr.ebay.com.au/
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© DESIGN GROUP ITALIA 56 IKEA IKEA Place lets you virtually ‘place’ furnishings in your space. From sofas and lamps, to rugs and tables, all of the products in IKEA Place are 3D and true to scale so you can make sure it’s just the right size, design and functionality for your room. https://www.youtube.com/watch?v=-xxOvsyNseY “IKEA Place
makes it easier to make buying decisions in your own place, to get inspired and try many different products, styles and colors in real-life settings with a swipe of your finger. Augmented reality and virtual reality will be a total game changer for retail in the same way as the internet. Only this time, much faster,”
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© DESIGN GROUP ITALIA 57 Mastercard and Swarovski team up on new virtual-reality shopping app “The cutting-edge VR technology allows consumers to fully realize scale and engage more deeply with design details before making a purchase –
anywhere.” | https://youtu.be/uFNFU4wgyNI Mastercard and Swarovski launched a virtual reality (VR) shopping app for the Atelier Swarovski home décor line, a collection of functional and decorative crystal home accessories designed in collaboration with world-renowned architects and designers. The app immerses consumers in a tastefully decorated home where they can browse and purchase the pieces with Mastercard.
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© DESIGN GROUP ITALIA 58 Nestlé Gives VR Factory Tours VR also can showcase events and reveal the inside of a brand’s operations. Nestlé did the latter, using 360º videos to tell a story of how its chocolate is made in its factory in Switzerland. “The videos showcase their factory, the farmer and dairy cows that produce the milk and
chocolatiers preparing delicious treats”. The videos are being shown at pop-up stores in malls in the U.S., where customers can watch the video in headsets before receiving a sample of the chocolate.
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© DESIGN GROUP ITALIA 59 LEGO Uses Augmented Reality To Make Models Come To Life. https://www.youtube.com/watch?v=-N85srjA-GQ Lego stores solved the challenge of customers wondering what the Lego model within the box would actually look like. The in store technology which was first piloted back in 2009 allows customers to hold Lego boxes in front of a screen, and, once the camera detects, a 3D animated model that is in the box appears on the screen which, as a customer rotates the box, the model rotates with it. The whole experience is very natural, because customers doesn’t needs to wear any device or use any smartphone.
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© DESIGN GROUP ITALIA 60 Apple Park in reality augmented at the Visitor Center Using the iPad, visitors to the center are able to see a virtual version of the campus overlaid onto the metal model in front of them. You can change the time of day to see how the massive glass structures look as they’re first kissed by the morning sun, etc. You can also tap on any building to see a little overview of what’s inside, and get visualizations of how solar power is collected by the cells on the buildings’ roofs. “…considering you can only use the app while you’re already on the campus, you could, alternatively, just look out the window.” https://www.youtube.com/watch?v=Y93mKGv3Wd0
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© DESIGN GROUP ITALIA 61 Lowe's Introduces In-Store Navigation Using Augmented Reality Customers visiting stores in Sunnyvale, California
and Lynwood, Washington can use Google Tango-enabled smartphones to easily search for products, add them to a shopping list and locate the product within the store using augmented reality. http://www.lowesinnovationlabs.com/instorenavigation https://www.youtube.com/watch?v=k4US6BO59YU
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© DESIGN GROUP ITALIA 62 Toys ‘R’ Us woos back shoppers with augmented reality in-store game Play Chaser is a free augmented reality app, from Toys ‘R’ Us that turns stores into virtual playgrounds. It works by getting users to point their smartphone’s camera at star icons in the store letting them play virtual games such as basketball or win digital prizes such as virtual dolls. Play Chaser is currently in testing across 23 American stores, most of them in California, New York and North Carolina. However, it should be available across all stores in the country as of October 21st.
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© DESIGN GROUP ITALIA 63 AR/VR customers’ experiences could look differently, according the chosen design approach
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© DESIGN GROUP ITALIA AR/VR related customers’ experiences could be dramatically different according the chosen design approach. 64 • Trough a shared headset in a public space • With a personal VR cardboard at home •
Trough their own smartphones (everywhere) The main situations in which users are using AR/VR, in a retail related context, are:
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© DESIGN GROUP ITALIA 03 / Opportunity roadmap DD Company / Brand / Project 65
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© DESIGN GROUP ITALIA “Retailers should be realistic and understand that it’s still a work in progress; it’s not a finished beast.” 66 Todd Richmond, Director of the Mixed Reality Lab University of Southern California
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© DESIGN GROUP ITALIA 67 Technology might be already there, but people will accept it starting from their humans’ needs Tim Alessi, LG's director of new product development, told tech website Cnet: "3D capability was never really universally embraced in the industry for home use, and it's just not a key buying factor when selecting a new TV,"
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© DESIGN GROUP ITALIA Both AR and VR have a bright future. Retail sector has shown just a small glimpse of the potential. Many other experimentations might be done in directions not yet adequately explored: 68 • Try before you buy / Remote guidance and tutoring / Product pack recognition • AR/VR magazines, experienced in store (as innovation corner) as well as at home •
Pathfinding combined with a proactive AI (custom advices, real time offers, etc) • Ad-hoc 3D/VR video production and series • Educational contents (sponsored) / Situated professional training • Immersive video theater for cinema and sports • Art and exhibitions / Conferences • Real time located gaming and social events
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© DESIGN GROUP ITALIA Additional VR/AR business cases are not related to the end consumers 69 • Store design: VR can be used to create fixture designs and produce a floor plan from a bird’s-eye perspective; •
Testing point-of-sale materials: P.O.S. and end-cap designs can be tested in VR and eye-tracking data can be overlaid; • Virtual presentations. Different designs and P.O.S. materials can be presented to committees or other decision-making parties in different regions to get their input.
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© DESIGN GROUP ITALIA The opportunity landscape is huge, but it is fundamental to not follow the technology hype and focus the attention on customers (and employees) digital habits. Design Group Italia team started using VR since 2012, focusing the attention to remote design and architecture validation process for high-end hospitality locations (BlueLagoon, Iceland) and other design advice/support for PepsiCo retail sector. 70
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© DESIGN GROUP ITALIA According our experience, we are proposing a design thinking based approach, that might start with the following steps: 71 Phase 0: Envision This presentation is part of the envision. To extend the study is needed a technology benchmark and a strategic classification of the VR/AR retail experiences included in this presentation, plus any other findable. Last but not least, internal and external interviews. The main output is a list of the emerged (and meaningful) potential AR/VR projects. Phase 1: Framing A workshop is the best way to share and check all those initial scenarios, defining the priorities. TIME FRAME AND PRICE FORK FOR PHASE 0 and 1: 8/12 weeks | 80/160K€ Phase 2: Exploring This phase is about prototypes and MVPs. Phase 3: Making This is where the identified prototype/MVPs comes to life.
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© DESIGN GROUP ITALIA The forecast of an eventual opportunity roadmap to AR/VR for Vodafone, might be the following. 72 AR Innovation hub available in store and at home Branded immersive experiences with VR (like a Netflix production, those experience brings customers into a Vodafone future / Vodafone TV) AR/VR events related to specific campaigns (flagship stores only) In-store VR room (like hi-fi listening room) AR/VR devices on sales plus dedicated content library AI-based Try before you buy Advanced deploymentFirst Wave deploymentsPhases 0-3 Point of sales design and training support
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DESIGN GROUP ITALIA Via Aleardo Aleardi, 12 20154 Milano ITALIA tel. +39 02 58325272 www.designgroupitalia.it THANK YOU. 234 West 39th Street New York, NY 10018 USA tel. +1 (718) 5771385
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