Future Shop: How Virtual Reality is set to be the Next Big Game Changer in Retail
At the rate at which the tech industry continues to roll out new advancements across all industries, it should come as no surprise to anyone that the application of virtual reality to e-commerce is set to become a, well, actual reality. Developers are hard at work coming up with different devices, apps, programs and gear that will allow the consumer to explore the products that interest them in ways that they previously could not—even were they to find themselves in the actual store. As appealing as the obvious potential here is to retailers, the effect VR will have on the supply chain once it goes mainstream is just as exciting.
That time-frame is anyone’s guess, though most people in the tech industry seem to be in agreement that consumer friendly VR technology will go to market sooner rather than later. Currently, the gaming industry is leading the way with the Oculus Rift device, allowing users to explore virtual worlds with the help of a headset. Meanwhile, apps such as Samsung’s Gear VR and separate tech like Google Cardboard, are integrating VR technology with mobile devices. Virtual rooms, both online or in stores, are also part of this pioneering wave, and have already begun to be implemented by the likes of IKEA, Lowes Hardware, and Under Amour.
None of the tech that is out there currently is expected to be the example that catches on and goes mainstream (although the ability to integrate new programs with Oculus Rift make it the leading example in the field). But with the amount of projects currently in R&D, the stage is set. More than the device itself, the most complex challenge when it comes to introducing VR into the consumer product market is going to be the merchant’s ability to render 3D models of their products. There are currently a few options available, most of which involve using a series of images to create an adequate 3D model. However, the quality of depth comes up wanting. Even when the tech is ready, the amount of work that such rendering will involve on the merchant’s end may prove so time-consuming and costly that it slows down the integration of VR as a whole.
However, should enough merchants and manufacturers integrate virtual reality into their sales method, it will not only cause online shopping to grow at an even more incredible rate than it currently is (especially in regards to clothing products), but it may also prove a boon to brick-and-mortar stores. This could prove especially true for furniture and home improvement retailers, who will be able to let customers experience, through VR, what larger and more complex products will look like in their homes.
As much as VR will affect the forward retail supply chain, the area that it is likely to have just as large, if not larger, an impact is the reverse supply chain. This is the process that relates to the return and recycling of goods, something that accounts for 20% of all products sold nationwide. The reverse supply chain costs companies a combined total of $100 million a year and does massive damage to the environment by adding more non-biodegradable refuse to overflowing landfills. By giving online shoppers a far superior idea of what they can expect when buying online, it stands to reason that we will see a large slash in returns, and thus a big cutback in the reverse supply chain.
Virtual Reality technology is something that we as a society have been collectively imagining for decades. As we stand on the precipice of it seeing it actually come into being, it is important that retailers, manufactures, and supply chain professionals start putting into place plans as to how to implement and optimize it. Currently, there are no best practices in place when it comes to this technology. The playing field is wide open, and those who take advantage of virtual reality are likely to see a very real effect on their bottom line, as well as their consumer base.
