2018 AR/VR Output Values ​​$17.8 Billion USD Retail will become the largest industry

From the outbreak in 2016 to the steady growth in 2018, VR and AR are already commonplace among people. VR can use a computer to simulate a virtual world. When a user wears a VR device such as a helmet, he or she will see a whole new world. AR not only blurs the boundary between virtual and real world, but also allows users to take action. The simulated world is seen on the device. The popular PokemonGo game is the use of AR to interact with real players and reality. MR combines the advantages of AR and VR to avoid the visual limitations of AR and to make up for the regret that VR cannot interact with the real world.

According to the "Guidelines for Global Semi-annual Augmented Reality and Virtual Reality Production Values," published by IDC, the output value of AR and VR will reach US$17.8 billion in 2018, an increase of nearly 95% from the US$9.1 billion in 2017. At the same time, it pointed out that the output value of global AR/VR products and services will continue to grow at a similar rate during the 2017-2021 forecast period. The five-year compound annual growth rate will reach 98.8%. IDC also predicts that retail will become the industry with the highest AR/VR value in 2018, followed by process manufacturing and construction.

What is virtual retail?

In February of this year, retail giant Wal-Mart acquired a small virtual reality startup called Spatialand. Wal-Mart hopes to integrate VR technology into the retail industry in the future. It will eventually change the entire retail industry and provide different shopping experiences through websites and physical stores.

Spatialand has previously developed a software tool that allows creators to convert existing content into an immersive virtual reality experience. This startup company participated in the StoreNo.8 technology startup incubator program held by Wal-Mart last year and is now officially acquired by Wal-Mart.

In addition, foreign brands such as fast-moving consumer goods and retail brands such as Lowe's, Swarovski, Nestle, IKEA and BodyLanguage Sportswear all provide consumers with VR experiences, such as guiding the aisle function of unlimited stores and DIY projects to help consumers better at home. Visual products, through the scene of different furniture placed in the living room, allow consumers to easily access products and places that may be difficult to access in real life, and Nestlé set up a virtual visit to the Swiss Nestlé factory experience.

As early as April 2016, Alibaba launched the “Buy+” VR shopping experience product. Ali claimed that it was using Virtual Reality technology to generate an interactive 3D shopping environment using computer graphics systems and auxiliary sensors. However, the user experience is not good, and the market has not caused too much water.

The VR business uses VR technology, head-mounted displays, and smart phones/computers to enhance and promote the shopping experience. It allows retailers to immerse consumers in a customized world and combine traditional online shopping elements with 3D experiences to increase consumer engagement.

Virtual reality technology is an important part of promoting the full development of the new retail consumption model. The combination of entity and virtuality needs to rely on the rapidly developing VRAR technology. Virtual reality technology allows consumers to completely reach a real simulated shopping mall, and consumers can see it. Assortment of commodity prices, product materials, product production locations, try-on, trial-play, trial-experience, etc., select the desired products at will, and after the payment is completed, you only need to wait at home for logistics delivery.

Where is the future of virtual retail?

VR shopping is more exciting and exciting than the traditional e-commerce shopping. The product display mode is presented from the e-commerce flat poster display to the VR3D stereo interactive display, and consumers are more immersed in the shopping atmosphere.

Although large e-commerce companies such as Alibaba and EBAY are making every effort to promote the development of VR shopping, Handheld Technology, Phoenix Optics, etc. are committed to exploring the application of 3D stereoscopic vision technology and virtual reality technology in VR shopping. InVRsion from Italy has released a name. ShelfZone's VR software is used to solve the problems of retailers and retailers making 3D stores and shopping centers. However, many technologies are currently under research and development. VR shopping also faces many challenges.

From a technical point of view, the current VR shopping technology is mainly realized by the combination of VR and AR, which combines the actual scene with the three-dimensional model and renders it in real time. However, there are many problems in AR data acquisition and image processing. Such as lack of clarity, lack of interactivity, can not simulate other feelings.

How to 1:1 mass-produce the proportion of goods, how to promote virtual tactile technology, so that consumers can more intuitively experience the material of the products sold, how to make users not dazzling after using the VR helmet for a long time, these problems Need to break through the technical bottleneck to be resolved.

Technically speaking, the promotion of VR and AR can enable users to enjoy a high-quality user experience at a low cost. Once the application of VR technology in the shopping field becomes more mature, the combination of entity and virtual in new retail is a matter of course.

How are VR+ retail companies profitable?

Companies that focus on VR technology are accompanied by high-cost operations. Facing the situation of high input and low output, how can VR companies achieve profitability quickly?

VR shopping needs to be as popular as smartphones with the development of VR technology. The application of VR technology in the brand building of shopping malls and the image display of settled brands will be easier to land than direct virtual shopping payment, supporting the development of enterprises, for VR technology and The new collision of retail chain department stores requires strategic patience.

VR offline experience hall becomes the most direct way to realize the early stage. Taking the egg chair as the main product form, in 2016, the VR Experience Pavilion has mushroomed in the commercial centers and shopping malls of large and small cities. The main use of the main entertainment games, and mall shopping combined VR experience is rare.

At present, some department stores that focus on model innovation have taken the initiative to grasp the opportunities brought about by the “VR new retail” era. Together with VR technology companies, the company actively explores new business models and realizes integration of online and offline, physical virtual business services for customers. The whole process of consumption provides a more intimate shopping experience.

VR+ retail or launch a powerful challenge to traditional retail

Many people predict that virtual reality will disrupt the retail industry. However, according to current developments, the virtual reality in the retail sector is still in its infancy, because retailers are only just beginning to test the possibility.

The real outbreak of VR occurred in 2016. The market responded strongly to hot spots. Once the boom has receded, many companies that do not focus on consumers and R&D are also pursuing new hot spots. Ebbing in the sand will precipitate the company's impact on the entire industry. With real impact, the market still needs a certain amount of time to accept this process. In other words, VR+ retail will not disappear with the disappearance of hot spots. Waiting for a good time will certainly produce a qualitative change.

In recent years, due to the impact of e-commerce, the traditional retail position has plummeted. Due to the economic downturn, labor costs have increased, the purchasing power of offline consumers and the profit contribution of the retail industry have started to shrink sharply, but the impact of online shopping is the current traditional retailers. The "real shock" is generally considered. Thinking about conversion, VR + retail or will reform the e-commerce model! New technologies, new supply systems, new markets and new customers are waiting for the arrival of time.

Last but not least, I believe that technological innovation, technological innovation in the entire industry, and even the reshuffle of the industry, 10 years ago, electricity supplier menacing, 10 years after the VR / AR or MR is bound to use new The technology to change people's lives, the more intelligent, user-friendly and personalized services in the retail sector will be the mainstream of the future.