Next generation technology

Virtual reality (AR/VR) is significantly increasing productivity and efficiency in retail, and more and more companies are seeing the potential benefits of incorporating it into customer experiences and products. Gartner predicts that by 2019, 20% of large companies will use AR, VR, or mixed reality in some way. Pokemon Go, an augmented reality (AR) smartphone app, is a wildly popular application. It allows users to “catch” Pokemon as users physically travel through the real world. It has brought entertainment to over 20 million users, generating mainstream interest.

AR/VR is expected to generate $150 billion in revenue by 2020.

AR uses technology that overlays the appearance of the outside world with computer-generated graphics. It is easier to adopt than virtual reality (VR), due to the additional hardware requirements of VR. In-store AR technology includes smart mirrors, like those at high-end clothing stores Rebecca Minkoff and Ralph Lauren, that let customers choose a language, change lighting and request different sizes or colors right from the dressing room, triggering an alert on a sales associate’s mobile device.

Home improvement companies like IKEA and Lowe’s have launched AR apps that let customers use unique room specifications to “see” what certain furniture or appliances would look like in their spaces, which can lower return rates. IKEA’s Kitchen Planner lets users “place” cabinets and other items in rooms, customize materials and colors, and generate a full shopping list. Sephora and Vogue use facial mapping technology in their apps to let customers “try on” certain products. By incorporating AR into their online and mobile presences, retailers can satisfy customers’ desire to visualize their options before buying. 2016 saw the launch of a number of virtual reality devices: HTC Vive, Samsung Gear VR, Facebook’s Oculus Rift, Sony’s PSVR, and, of course, Microsoft’s HoloLens, the first standalone holographic computer.