While the last decade has not always been easy for the world of retail, it’s hard to deny that it has been exciting. Globalization and the proliferation of digital technology have made e-Commerce nearly ubiquitous across the industry and given more power to consumers. As some consumers shun traditional brick-and-mortar stores for shopping online, retailers are adapting by leveraging new tools to optimize for the modern era.
Black Friday is the perfect example of how the industry is finally embracing the change wrought by the digital age. Last year, in-store sales continued to decline while Black Friday online shopping reached a record total of more than $7 billion. Retailers are realizing they can blend the lines between their digital and brick-and-mortar shopping channels to court more customers. The most forward-thinking companies, such as IKEA and Wayfair, are already using technology like mixed reality (XR) applications in-store and have seen great results.
In 2020, “holographic” light field displays will help retailers take it a step further by providing customers with a fully interactive, lifelike shopping experience by rendering images with 3D depth as well as complex, realistic light effect such as sparkles, texture and highlights. The benefits, however, are not just limited to providing a more immersive and engaging shopping experience for customers. Let’s take a look at how this type of technology will change the game for both retailers and their shoppers.
Customer Convenience
E-Commerce has shaken the retail industry because it provides customers with an unprecedented level of options without ever needing to move from the couch. There is also the argument that online shopping is more convenient than shopping at a brick-and-mortar store. However, that depends on what one is shopping for.
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Take furniture shopping, for example. How do customers know whether a desk or couch will fit into their homes? Photos on a web site can be misleading and if customers aren’t confident in the purchase, they’ll move on without making one. Some innovative brands already recognize this and are capitalizing on the opportunity provided by immersive mixed reality and holographic technology tools.
IKEA, for example, has allowed customers to preview furniture in their homes using augmented reality (AR) for years. Initial deployments like this have been so successful that a recent study revealed 61% of shoppers prefer to shop at brick-and-mortar stores that offer AR. They think it’s fun, convenient and that it saves them time. What’s more, that same study revealed nearly three-quarters of shoppers have made a purchase they didn’t intend to because of AR.
What light fields offer that AR can’t quite capture is a complete sensory experience on a regular device (phone, tablet). Showcasing products on light field displays allows customers to peruse the merchandise and see the detail, texture and color of the item without ever handling the physical item itself. Not only that, but it removes the need for the special eyewear (such as VR glasses) that other digital immersive technology requires.
Streamlining Inventory
When most people think of holograms, they almost certainly don’t think about inventory management. However, holograms serve a perfectly practical purpose in this critical retail process. Maintaining efficient inventory management practices enables retailers to avoid over and understocking products while filling orders faster, ultimately leading to a happier customer base.
Tommy Hilfiger is already realizing the benefits interactive displays can have and is leading the way towards an all-digital showroom. By next year, the company’s design processes will be done completely via 3D — from concept design to the store floor. For customers, this means their products won’t be manufactured until they make a purchase — the entire shopping process will consist of interacting with digital interfaces.
This concept is especially important for companies selling luxury goods such as designer clothes or jewelry. High-end retailers need a way to strategically minimize the inventory of their expensive products while providing customers the essential service of seeing the flaws in a diamond or the stitching of a handbag. Holographic light field displays highlight these products in detailed 3D and give customers that experience without requiring designer brands to hold them in-store. The result is minimal risk and expense to the brick-and-mortar store thanks to streamlined inventory.
Courting Generation Z
While retailers have struggled during this golden age of e-Commerce, there is reason to be optimistic about the future. Gen Z is projected to be the largest generation of consumers by the end of the year — with up to $143 billion in spending power behind it. Believe it or not, this up-and-coming group has displayed a clear preference for in-store shopping and will be looking to spend their money at brick-and-mortar locations.
For retailers to capitalize on the opportunity, they need to live up to this younger generation’s high expectations. Not only are they looking for a high-quality customer service that integrates technology into the mix, but they want the act of shopping to be an experience in itself. With that in mind, retailers will be finding new ways to capitalize on Gen Z’s great fixation on social media. Holographic and light field displays provide a blend of all the elements needed to reach these shoppers: they offer realistic, tactile representations of products alongside specs and pricing information while giving shoppers a unique “wow” moment in-store which caters to their urge to share.
2020: The Year Of The Digital Showroom
The advancement of retail technology today is proving to be increasingly beneficial to both businesses and consumers. The next generation of XR, holographic and light field display technologies allows stores to streamline critical business operations while giving customers a convenient and engaging sensory experience. It caters to the shopping and sharing habits of the up and coming generation while breaking down inconvenient roadblocks in the e-Commerce chain.
With more companies reaping the benefits, the year ahead will see them close the gap between the digital realm and brick-and-mortar. Customers will handle products on the showroom floor without ever touching the real thing. Retailers will leverage these new tools at their disposal and the industry will see a resurgence in brick-and-mortar. Shopping will once again become about the experience and not just the convenience.
David Fattal is the Founder and CEO of Leia Inc., a Silicon Valley company developing a Lightfield Display technology platform for mobile devices. He previously spent 9 years at HP Labs working on various aspects of quantum computing and photonics and specializing in the manipulation of light at the nanoscale.
