Is virtual reality going to revolutionise the e-commerce experience?

Today's consumers don't differentiate between retail channels. They'll jump between mobile, online and in-store shopping channels. Retailers need to position themselves at the intersection of physical and digital realities. Augmented reality/virtual reality is one technology that is still a question mark regarding actual implementation and ROI. As per a leading analyst firm, the AR/VR market is expected to grow to $95 billion by 2025. There are rising expectations for fast, frictionless, cross-channel shopping experiences, which can be enabled via VR/AR. But how effective would it be is a question yet to be answered.

So, let me be the devil's advocate and contemplate why AR/VR isn't the future of the retail industry that we expect it to be. Retail is everything from food to personal care to fashion to essentials, right? Whether AR/VR will work across all these categories. I have my doubts. Several limitations hinder the adoption of AR/VR - cost, accessibility, technical limitations, and Bandwidth. But from my perspective, it is more related to the customer experience, behaviour, and geography.

To my mind webrooming or window shopping is something we all do, irrespective of whether we buy the product or not; the joy it provides is relaxing, but is it possible for AR/VR to give a similar experience to a physical outlet? I don't think so. Does it provide convenience? In Europe and USA, the usage of AR/VR might be convenient due to the stores not being easily accessible for everyone, but in India, it's relatively easy to go to a physical outlet where we can have diversity from small independent shops to shopping malls. One crucial factor that every customer looks upon is authenticity. The opportunity to experience the product and get to know its quality, fitting, and comfortability and have the possibility to test and try things on is a massive help in making a final decision and creates better customer satisfaction. The e-commerce industry has also realised the significance of touch and feel, and that's why "Try and buy" was the catalyst that helped e-commerce explode in India.

During the pandemic outbreak, AR/VR did experience interest and adoption as people were very hygiene conscious. Hence, they were comfortable going through virtual try-on, but now that the pandemic has come to somewhat normal, people are again excited to go out and shop. For AR/VR to infiltrate retail categories like food, fashion, and personal care would be quite strenuous, given that the above factors play a huge role in customer’s final decision.

It's a clear NO that AR/VR is the future for every retail brand or e-commerce portal; simultaneously, there are a few selected categories where they are making excellent progress. AR/VR has given a different approach to the furniture business with the "try before buy" concept. The Italian furniture brand Natuzzi has launched a virtual-reality shopping experience. It lets customers enter a digital version of their home and decorate it with Natuzzi pieces. AR also enables Lenskart to provide a virtual try-on feature, making it less time-consuming, more convenient and enjoyable. Luxury brands can benefit from AR/VR by providing customisation and virtual try-on options on their exclusive products.

Theme parks are somewhere the integration of VR technology might flourish by giving a glimpse of the expanded ride experiences, attractions, and entertainment shows which can create captivating experiences to attract visitors to their e-commerce booking portal. Companies like BookMyShow can integrate AR/VR to give a peek to their customers to help them choose a better seat in the theatre with a superior screen angle or while booking a restaurant table to decide on getting a better view while dining.

It's clear that virtual reality has a place in e-commerce. The bad news is that AR/VR is still not what sci-fi movies hyped it to be — a fully immersive experience that transports us to another dimension. Even the leading systems still lack some basic features. However, we're still at the beginning of the journey; we haven't scratched the surface of this technology in some areas. It will eventually gain some traction in a few sectors, but it won't be able to provide the return on investment and disruption as much as Automation and AI had in retail.