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Virtual techniques in the Retail Industry: VDC-Whitepaper

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The Virtual Dimension Center (VDC) Fellbach has worked out applications and potential benefits of the use of virtual techniques in the retail industry and summarized them in a whitepaper.

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Virtual techniques in the Retail Industry: VDC-Whitepaper

  1. 1. © Competence Centre for Virtual Reality and Cooperative Engineering w. V. – Virtual Dimension Center (VDC) Whitepaper Virtual Techniques in the Retail Industry Areas of applications – Examples – Potentials Prof. Dr.-Ing. Dipl.-Kfm. Christoph Runde Virtual Dimension Center (VDC) Fellbach Auberlenstr. 13 70736 Fellbach www.vdc-fellbach.de
  2. 2. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Studies regarding this topic 2 Retail Tomorrow, Today. Five trends shaping the retail industry in 2018 and beyond. Oracle, Redwood Shores/USA, 2018 Introduction
  3. 3. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Studies regarding this topic 3 Retail Tomorrow, Today. Five trends shaping the retail industry in 2018 and beyond. Oracle, Redwood Shores/USA, 2018 Introduction
  4. 4. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Challenges 4 Chances  Competitive pressure  Large retail chains  Huge online marketplaces  Individualization, mass customization, exploding number of variants  Acceleration product change  Increased expectations of consumers/ customers regarding o Information needs o Presentation and visualization  Possibly global markets  New simulation and visualization methods  Virtual reality (VR) and augmented reality (AR) as mass platforms on mobile devices  VR as a bridge between online and offline trading  Digital development process chains as data suppliers  New methods of 3D capture by photography (photogrammetry) or laser scanning Introduction
  5. 5. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Virtual techniques in the retail industry – Application fields Online 3D product presentations  3D-capable web shops  3D scans of goods, photogrammetry, automated product photography  Interactive scheduling using AR  Virtual sell-in for collection sales and marketing to wholesaler/ middleman  3D configurators for creating customer- specific variants and 3D result visualization Digital signage  Digital (3D) advertising in malls, airports, etc.  Brand stores as a digital showroom  Stationary shop with only a few physical products  3D configurators  Order via webshop 5 Virtual Store  Shops and shopping malls as a 3D model: evaluation of shop design (virtual prototyping of the shop, technical equipment, etc.)  Evaluation packaging design  Evaluation sales support measures Virtual training of  Personnel in trading Wearables and / or AR in logistics  Picking with Smart Glasses and AR Introduction
  6. 6. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Online 3D product presentations  3D models of the products  Views and section freely selectable for customers  Labels, imprints detectable in a legible quality; thus reduction of the accompanying text  Automated scanner systems  Providers offer hosting with required bandwidths Image: alfaloc media Detailed view on product in browser 6 Image: alfaloc media Screenshot of webshop example with 3D models (drugstore) 3D scanner with evaluation softwareImage: Packshot Creator Online 3D Product Presentations
  7. 7. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining  AR function for smartphones and tablets through AR platforms (ARKit, ARCore)  Integrated in shopping app or standalone application  Scan the environment and present the product in original size in real context  Advantage: easy check for accuracy of fit (space, color, etc.) of furniture and other products prior to the purchase 7 Image: IKEA AR app based on a AR platform Image: Wurzel Medien Fade-in coffee machine on marker Image: edmunds Examination of space requirement for vehicle Online 3D Product Presentations Online 3D product presentations
  8. 8. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Virtual Sell-In  Sell-in: collection sales, marketing to wholesale/ middleman  Produce entire collection as sample parts: too expensive  Useful, if there are many variants or models with customers or within the company to vote  Staging  Combination with new outfits Image: adidas Image: adidas Image: adidas 3D visualization shoe collection 3D representation collection in shop Different outfit visualizations 8 Online 3D-ProduktpräsentationenOnline 3D Product Presentations Online 3D product presentations
  9. 9. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining 3D configurators  Interactive product configurators  Independent selection and configuration  Configurator logic configures only possible and deliverable products  Access can be restricted to specific user groups: exclusivity  Possibly integration with order system (delivery capability, delivery time) Image: DS 3DXcite Automotive: position, form and color of seams 9 Image: bitmanagement Fashion: web 3D configurator Image: Tacton 3D elevator configurator: selection masks Online 3D Product Presentations Online 3D product presentations
  10. 10. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining 3D configurators  Virtual customer dialogue  3D web platforms or virtual worlds  Statistical evaluation on preferences (market research)  Earlier: dialogue through avatars which are controlled by employees (e.g. Second Life) Image: Tacton Image: Mercedes-Benz Configured variant of a bus in 3D Mercedes Benz branch in Second Life (closed´in 2008) 10 Image: Palette CAD Virtual showroom with configuration possibilities Online 3D Product Presentations Online 3D product presentations
  11. 11. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Exemplary configurations of Daimler commercial vehicles. Modern 3D configurators rely on variant management systems that can manage product diversity with a huge combinatorics.Image: Tacton 11 3D configurators Online 3D-ProduktpräsentationenOnline 3D Product Presentations Online 3D product presentations
  12. 12. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Digital Signage  Viewing static or dynamic content on digital ads in the store or outside (such as airports)  Use of autostereoscopic 3D displays or light field displays: extension of the duration of attention  New 3D displays with 8k resolution 12 Image: Interactive Design Café PoS 3D displays (without glasses) Image: Tridelity Airport displays (without glasses) Digital Signage
  13. 13. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Image: Audi Audi City London: material samples complement 3D visualization Digital Showroom  Use of 3D, VR and AR in stationary trading  Only a few physical products, but all variants virtually representable  Mutual understanding between buyer and seller  Customer designs his specific product: product configurators using the expert version of the configurator  Interactive presentation of the product, simple demonstration of variants, provide detailed insights  Show product virtually in operation  Increase information density, esp. understandable presentation, even of complex relationships Image: Audi 13 Audi City London: Digital Showroom Image: DS 3DXcite Screen in shop context Digital Showroom
  14. 14. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Digital Showroom  AR installations in use at Toys "R" Us  Animated LEGO model will appear on the sales packaging  Customer puts model into the desired perspective Prototypical:  Magic Mirror, AR Mirror, Virtual Mirror  Virtual fitting of clothes, shoes with AR is content of research projects  Gesture recognition for the interaction Image: LEGO Image: Cisco Interactive LEGO box at Toys‘R‘Us: use of Augmented Reality Augmented Reality: vision „Magic Mirror“ 14 Image: Adidas Magic Mirror for shoe fitting Digital Showroom
  15. 15. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Virtual Store  Evaluation shop design in VR  1:1 simulation of PoS scene  Cheaper than field tests  More flexible, faster: swift change of scenarios  Variations of boundary conditions at runtime o Shelf full / half full / empty o Product placed on top / center / bottom o Market full / half full / empty  Stronger control: all environment variables controllable: weather, light, competitor activities, supply bottlenecks, ...  New test option: efficiency of marketing within the store, comparison possibilities Image: Kimberly-Clark Presentation of a supermarket model 15 Image: Vision Critical Supermarket simulation Image: SCA Packaging Supermarket simulation Virtual Store
  16. 16. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Virtual Store  Design of packaging, labels, etc. using VR techniques  Test in 3D environments (market research), gaze analyses possible  Secret testing of new products, hidden from competitors, failed approaches remain confidential  Variation and evaluation of the packaging design at runtime  Some systems use a shopping cart to navigate in 3D scenes  Wall Street Journal: 50% reduction of product testing time  Research on navigation and interaction methods for VR online shops Image: Wurzel-Medien Image: SensoMotoric Instruments Label design of a water bottle Stereo 3D glasses with integrated eye tracking 16 Image: DFKI Navigation in VR online shop Virtual Store
  17. 17. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Virtual training of personnel  Training of sales personnel  Use of serious games techniques  Interactive simulation of scenes  Variable dialogue [avatar reacts accordingly to answers]  Objective success control  Variables freely changeable  Possibility for integration of gestures and facial expressions Image: blog.venuegen.com Image: Zone2Connect Image: Zone2Connect Scene 3D sales talk Scene 3D sales talk for Vodafone Logic modeling Dialoog 17 Training
  18. 18. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining  Simulation of sales environments: replicating architecture, roles, processes and tools  Simulation of new processes and future scenarios of potential customer journeys  Derivation of recommended actions Image: Solid White 18 Virtual Retail Lab of Mercedes-Benz- Consulting: virtual sales and consulting scenarios Training Virtual training of personnel
  19. 19. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Wearables in logistics  Pick & Place applications with smart glasses / watches / gloves / smartphone / tablet PC, etc. o Hands-free via smart glasses o Smart gloves replace barcode guns  Identification of articles reduces incorrect picking  Localization of articles is supported  Navigation support for order pickers 19 Image: www.hiavr.com HUD concept of navigation on a forklift: using video telephony Image: Picavi Barcode detection by means of smart glasses Image: AbsoluteReality Logistic status information when looking through a tablet PC: looking for articles with the destination country Germany Wearables
  20. 20. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining Summary  Versatile applications of virtual techniques in the retail industry  Commerce is very heterogeneous: technology used depends on business focus  Combining stationary and online commerce is becoming increasingly important for the competitiveness of retail companies  Virtual Reality is well suited for the presentation of complex products with a high creative and emotional ambition  Use of AR and VR on mobile devices (Cardboard VR, ARCore, ARKit) offers potential for reaching a large number of customers 20 Sources  Augmented Reality Monitor 2018. Repräsentative Befragung zur Bekanntheit, Nutzungsbereitschaft und Potentialen von Augmented Reality im Einzelhandel, Splendid Research, Hamburg, 2018  Retail Tomorrow, Today. Five trends shaping the retail industry in 2018 and beyond. Oracle, Redwood Shores/USA, 2018  Trends und Entwicklungen im Handel: Konsumenten-Trends. Ergebnis einer Umfrage unter 132 Führungskräften deutscher Handelsunternehmen. Clavigo Partners, Management Forum, Verlagsgruppe Handelsblatt: 2017  The Use of Virtual Store Simulations in Marketing Research and Beyond. In-Store Marketing Institute, 2009 Summary
  21. 21. Online 3D Product Presentations SummaryIntroduction Digital Showroom MissionDigital Signage MissionVirtual Store WearablesTraining VDC members and partners regarding this topic 21 Summary
  22. 22. © Competence Centre for Virtual Reality and Cooperative Engineering w. V. – Virtual Dimension Center (VDC) Thank you very much for your interest! You are interested in this topic and you are looking for contact persons/ implementation partners? Please contact us. Virtual Dimension Center (VDC) Fellbach Auberlenstraße 13 70736 Fellbach www.vdc-fellbach.de

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