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This past Sept. 26-28, retail brand owners, designers, marketers and strategists convened in Dallas for the Shop.org Retail’s Digital Summit (produced by the Washington, D.C.-based National Retail Federation). Programming promised to inform and inspire the full range of job functions involved in creating a seamless shopping experience across physical stores, e-commerce and mobile platforms.

Setting the tone for the conference, opening keynote speaker, theoretical physicist and renowned futurist Michio Kaku, joined by comedian and podcaster Marc Maron, described the future of commerce as a new realm of “friction reduction,” equating the act of reaching for a wallet or tapping the “add to cart” button as two mildly laborious tasks that will one day become a thing of the past. Instead, said Kaku, shopping will be made easier by accessing the Internet though contact lenses or by printing products without leaving home using a 3-D printer, stating that “those who can integrate the digital world with the physical world will be rich.”

Shop.org/National Retail Federation, Washington, D.C.

For those in fear of the obsoletion implied by such drastic technological advancements, Kaku maintained that there are simply too many jobs that require free thinking, creativity and decision-making to threaten the economy at large. Bricks-and-mortar retailers can also breathe a sigh of relief: Humans, he said, will always seek out physical stores in some capacity. “We want to touch things because we are descendent from hunters,” Kaku said.

The conference also touched upon the increasing use of augmented reality and virtual reality and the potentials they hold in enhancing the in-store experience. Omnichannel was another underlying topic throughout, signifying that the concern to meld e-commerce with traditional shopping methods isn’t going away anytime soon.

ALTERNATE REALITIES TAKE OVER

Delving deeper into the practicality of said tech advances, the session “Digital’s Fast Track: Virtually There with AR/VR” examined the uses of augmented reality and virtual reality from three perspectives: that of the digital agency, with Mitch Joel, president of Mirum; the developer side, with Sophie Miller, business development, Tango (Google’s AR/VR platform); and from the retailer’s perspective, with Johnna Marcus, sr. director, Sephora Innovation Lab.

Joel started by breaking it all down, describing the “basic” elements – including the reality spectrum (one, real life; two, augmented reality; three, augmented virtuality; four, virtual environments) and the difference between AR and VR – as well as why retailers should care about this new opportunity to connect with shoppers.

Shop.org/National Retail Federation, Washington, D.C.

“I believe it’s the next platform,” Joel said, admitting how ridiculous it may sound to many. And we’re virtually there, he said, yet distribution of the necessary technology (capable smartphones and head-mounted displays, or HMDs) remains the biggest challenge, as well as the associated “dorkiness” factor, which still proves to be a hurdle, as seen (or not) with Google Glass. However, tide is turning, he said, since big brands like Samsung have begun bundling the Oculus HMDs with its smartphones, which has made them more widely available.

PREPARING FOR CHANGE

Adding to the conversation, Google Tango’s Sophie Miller described the evolution of AR in retail, from virtually placing furniture into your home with brands like Wayfair or Houzz, or changing the paint and interior upholstery colors on a Fiat in real-time at a dealership. Unlike mega-popular gaming apps like Pokémon Go, which she described as a 2-D sticker placed onto video, Tango is being used to create true AR experiences that are spatially accurate and “know” where the ground is.

In utilizing this or other accurate AR platforms, retailers can lower overhead by limiting the amount of inventory they retain in store, keeping their formats flexible or even smaller. The technology would also benefit the retailer outside the store, allowing customers to effectively shop from home and see how the item would look in their house. “They can take your store with them wherever they go,” she said, which would be a great advantage for the furniture and appliance industries.

Shop.org/National Retail Federation, Washington, D.C.

For retailers to begin implementing these uses, the first next steps would be to narrow down your key category for use in AR, she said, “Where do I need visualization on a fundamental basis?” Next, and possibly most difficult, is creating the 3-D assets of each item, which includes high-resolution photography and 3-D computer-aided drafting (CAD) models. Finally, determine your “tech ambassadors” who will show customers what’s possible with the new services. “Maybe it’s a sales team in store, but think about who it is,” she said.

OMNICHANNEL’S MAKEUP

On the retail side, Sephora’s Johnna Marcus shared examples of uses the brand has already begun to implement across its platforms. While Marcus stated that VR is “a little forward-looking” for Sephora, they have a strong focus on AR. Based its motto, “teach, inspire, play,” Sephora infuses all three elements into its digital concepts and uses them to engage shoppers on a personal level to make shopping easier and more fun.

In creating its new programs, they began by thinking how she will shop in three to five years, Marcus said. As the beauty industry has become more accessible via social media platforms like Instagram, Snapchat and YouTube, Sephora’s core customer is looking to test makeups virtually and learn how to use the products in the comfort of her own home. “AR can be a beauty expert in your pocket,” said Marcus, explaining that its Pocket Beauty Pro (within the Sephora mobile app) teaches shoppers how to use popular cosmetics application methods themselves with the aid of AR instruction. “We started seeing people use it 10 times or more – they were using as a tool,” she added, explaining that it went beyond its initial expected use of one to two times.

Shop.org/National Retail Federation, Washington, D.C.

Through the same app, customers can try on upwards of 3000 lip shades and hundreds of false lash options, with shades and lashes adapting to each individual’s facial features. While it may seem like a novelty, it addresses a real problem that their shoppers encounter: Although lip color testers are available in stores, it’d be difficult to try more than a few for most customers; lashes cannot be tried on, only purchased in hopes you’ll like how they look and fit. Color try-ons average 50 shades per session, says Marcus.

Sephora has also begun using AR storytelling within its product displays in store. Using the app, customers can scan images throughout the store for further product information, to find inspiration on how to use the products or certain looks they can attempt on their own, something she says customers have appreciated. “Usually the rule is ‘don’t put content in the way,’ but this worked,” she said.

All in all, the 2016 Shop.org Retail’s Digital Summit had something for everyone. Looking toward the future of omnichannel, mobile and AR/VR-enabled shopping experiences, meetings like these between the broad range of retail functions will only help drive innovation through comprehensive idea sharing.

Kaileigh Peyton is the associate editor of VMSD magazine. She lives and works in Cincinnati and is a 2011 graduate of the University of Cincinnati, where she studied journalism and psychology. Prior to her position with VMSD, Kaileigh worked as a contracted editor for an international consumer goods company, and was an intern at Cincinnati Magazine and Cincinnati Wedding, for whom she also freelanced. With an ever-growing interest in technology, she covers the mobile and in-store tech sectors for VMSD. Contact her at kaileigh.peyton@stmediagroup.com.

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