Virtual Reality (VR) is coming and faster than you think. Brands such as Carnival, BMW, Christian Dior and TAG Heuer are actively exploring creating new consumer experiences via virtual worlds. Through a partnership with CEEK, a VR platform, both Richline Group and designer Wendy Brandes displayed VR demos at Intervision at JCK Las Vegas in 2016. Though the environment is virtual, the impact on jewelry and the retail space will be very real.
The jewelry market is ready for VR solutions to launch into the mainstream, armed with several key primers:
- Entry price points for top-of-the-line hardware is only a few hundred dollars. However, a less expensive and viable VR option is to purchase Google Cardboard, for approximately $20, to supplement a smartphone.
- The quality of VR devices from Oculus and Samsung, among other companies, will most definitely surpass most expectations.
- The amount of software development being dedicated to VR today is a sure sign of future growth. Big brands are already onboard and backers such as Facebook are continuing to make monumental leaps forward.
- VR is bringing on heavy venture capital.
- Facebook’s investment and acquisition of Oculus and the developments they are already launching with Facebook360's interactive and immersive videos are another proof of what is to come.
VR will make a strong impact on the retail and jewelry market in three significant ways.
- The emotional connection formed when a consumer tries something on generally translates into a much higher likelihood of purchase. VR serves as an emotionally rich experience for consumers to connect with brands more frequently and independently.
- The opportunity for expansive inventory and virtual catalogs provides a great deal of potential value for a retail jeweler trying to compete with larger competitors.
- VR provides an ample opportunity for the industry to collect massive amounts of valuable behavioral-based data. What are consumers looking at? What are they trying on? For how long?
- VR offers the possibility of expansive behavioral and biometric data measuring the subconscious impact on heart rate, blood pressure and sentiment when the customer tries on jewelry. This type of experience is already being used for market research purposes, but will become more mainstream.
- The industry needs a boost in its cool factor and for many consumers, VR is a perfect way for a very analog industry to become even more relevant and exciting.
Article from the Rapaport Magazine - March 2017. To subscribe click here.