Trend of the week: Virtual Reality

The use of virtual reality (VR) is rapidly growing across various retail sectors like fashion, home decor, and automotive, driving significant market expansion. For example, furniture retailers use VR to help customers visualize how products will look in their homes, while car dealerships offer virtual test drives and customization options for vehicles. The integration of VR with AI and data analytics is enhancing its effectiveness, creating smarter and more personalized customer experiences. These advancements highlight VR’s potential to transform marketing strategies and reshape the retail landscape.

The VR retail market is growing due to advancements in technology, shifting consumer behaviors, and a focus on experiential shopping. A key driver is the demand for personalization, as VR offers tailored experiences like virtual try-ons and customized store layouts that enhance customer confidence. VR also addresses the limitations of online shopping, such as the lack of physical interaction, by bridging the gap between digital and in-store experiences.

Fun facts: 

• VR revenue is expected to surpass $12 billion in 2025; in 2020 alone, it raked in $1.8 billion.

• VR is among the fastest growing media sectors in the industry

• Some key VR market players include Sony, Samsung, Google, Oculus, Eon Reality, and Leap Motion.

IKEA - Place 

IKEA Place uses augmented reality (AR) to revolutionize its marketing strategy by allowing customers to virtually place furniture in their homes, addressing key challenges in the online furniture shopping industry. The app enhances personalization and convenience by allowing users to experiment with different furniture styles, colors, and arrangements directly on their devices. This integration bridges the gap between online browsing and physical shopping, offering a streamlined and engaging experience. IKEA Place eliminates guesswork, boosts purchasing confidence, and reduces the likelihood of returns by enabling informed decisions. This innovative approach positions IKEA as a leader in integrating immersive technologies into retail.

The IKEA app integrates smoothly with its e-commerce platform, allowing users to save favorite items, share settings on social media, and complete purchases directly within the app. This integration simplifies the shopping experience and effectively connects online and in-store interactions, creating a seamless customer experience.

H&M - VR Showroom 

H&M has embraced virtual reality and the metaverse to revolutionize fashion experiences and sustainability. In April 2022, it launched its first-ever virtual showroom. This digital space allowed media and press to explore photo-realistic, 3d-rendered garments animated to simulate cutting-edge materials. The showroom serves as a platform for brand activations, enabling global audiences to experience campaigns without physical travel. It also fosters connections with influencers, stylists, and celebrities while integrating innovation and sustainability into fashion presentations.

H&M has also explored augmented reality (AR) features, such as virtual try-ons via Snapchat and Instagram filters, offering customers new ways to express themselves digitally. Virtual garments transcend physical limitations by using materials like liquids or AI-generated patterns, emphasizing inclusivity through custom-fit designs for all body types.