Page 68 - March 2020

SPECIAL FEATURE: RETAIL & BRAND EXPERIENCE

Taking The Next Step

Brand engagement through AR and VR is the next step in making memorable, sustainable also been promising, with online shopping carts reportedly Aside from a brand engagement aspect, VR and AR could also
bigger at check-out and stores seeing fewer product returns. reduce overheads from physical retailers. For example, beauty
experiences for your customers. Here, Craig Wildman, Global Managing Director at AR and VR adoption could also significantly improve brands such as Sephora have AR offerings that allow customers
audience attendance for brand launches at flag-ship stores. to ‘try before they buy’ acting as an effective substitute for sampling
2Heads takes a look at why this is the case. Virtual attendance could let brands promote inclusively programmes, which can cost upwards of £70,000 to rollout.
rather than exclusively by creating virtual environments The ‘try before you buy’ aspect of AR or VR technology could
for customers across the globe, so they can be part of have a significant impact on the sustainability commitments of
irtual and Augmented reality technologies decision for many; a 2018 study by Edelman showed that 64 the moment at the same time and engage with the brand. both brands and retailers.
could become a solution to some of the issues per cent of customers globally consider themselves ‘belief-driven’ From a brand marketing perspective, this pivot away from The sector is still very much in the position of having to prove
affecting our favourite high street stores, who buyers, up 13 points from 2017 and showing no signs of slowing. traditional marketing to creating memorable experiences that they are eco-conscious, and our retail clients at big exhibitions
V have faced a difficult and turbulent 12 months. However, the adoption and implementation of AR and will also become a critical brand engagement tool. or retail conferences have made it known that they want to provide
2019 saw a staggering 16,000 stores shut up shop across the VR may prove to be the perfect tonic for both changes After all, it’s not always about shouting the loudest and memorable, sustainable experiences with customer engagement
country and 2020 has already seen one high-profile casualty in consumer behaviour as well as staving off some of the throwing money at an advertising campaign, it’s about leaving as the focus rather than the physical builds we create at events.
with Beales plunging into administration. External pressures external pressures facing retailers. a lasting brand message that cuts through the noise and stays Adding to this is the significant carbon footprint associated
such as Brexit uncertainty and the continued rise in digital As an experiential agency that helps clients stand out at with a consumer. with hosting large retail events, such as RetailEXPO, that virtual
challengers haven’t made matters any easier for retailers, some of the biggest retail events in the world, we believe Studies show that consumers are more receptive to attendance could solve. Instead of forcing both exhibitors and
forcing many to rapidly adapt to stay competitive. that the use of AR and VR to drive customer engagement unique experiences than typical branded messaging. An oft- attendees to fly to a specific event, there’s no reason why virtual
Underpinning all of this has been the seismic shift in consumer and brand loyalty could be the next major differentiator cited study by Retail Connections in 2016 showed that 61 attendance or AR tech, such as hologrammed speakers, cannot
behaviour: the average person is bombarded with an estimated between those who succeed and those who fail. per cent of shoppers prefer retailers who offer AR over be implemented as an alternative.
5,000 ads per day, making it harder than ever before for brands Early adopters are already reaping the rewards: IKEA, Home those who don’t, and that 72 per cent of shoppers purchased Ultimately, retailers that are willing to roll out smart VR or
to cut through the noise and engage with customers. Not only Depot and Macy’s and others have established apps that allow items they weren’t planning to just because they tried it out AR solutions will see an increase in consumer engagement,
has this over-saturation of promotional content made people less customers to kit out their home without going to a physical using AR. As this tech continues to be refined and current drive brand loyalty and see a boost in customer retention. The
receptive to brand messaging, but consumers have also become store. From a marketing perspective the results have been connectivity issues are resolved when 5G finally reaches UK happy byproduct of this tech will also contribute to a company’s
significantly more conscious of the brands they are willing to fantastic, netting positive press, accolades from industry peers shores, it’s likely that AR or VR will be a must-have addition sustainability commitments, ensuring those who do vote with
support. Sustainability has gone from fad to major purchasing and increased interest from consumers. Tangible results have for retailers rather than just a marketing gimmick. their wallets will remain loyal customers

68 RETAIL & LEISURE INTERNATIONAL MARCH 2020