| | 9CIOReviewMAY 2021AR and VR applications that provide visual guidance or walk-throughs to problem resolution.· Knowledge Sharing: One of the biggest challenges' factories face is downtime. This is preventable in some cases with AR. If new workers are unable to troubleshoot a situation, they can seek assistance from experienced workers even remotely. Unilever has seen a 50% drop in downtime with AR. And, interestingly, gained direct return on investment (RoI) of 1717% relative tospend on remote AR.· Setting Customer Expectations: With AR and VR, retailers and brands can create near-realistic experiences that can set realistic expectations. This will help reduce post-purchase dissatisfaction among customers. BMW has created an AR app that does just this ­ allowing customers to browse car models from home.In the travel and hospitality industry, hotels like Hyatt Regency are using VR to give customers a realistic idea of what they can expect on their property. AR and VR are uniquely positioned to help businesses overcome challenges and tap into growth opportunities. And it is no different in retail. The Value of AR and VR in RetailThe retail industry, which according to the US Retail Index Report by IBM has seen a speedup of its transition to digital shopping by 5 years, is no stranger to the use of AR and VR. One of the first instancesofthe useof AR and VR in retailwasto give customers the opportunity to try before they buy. Many times, post-purchase returns and exchanges can be quite daunting. Because of this, customers may not even venture into making a purchase if they are uncertain. This challenge was augmented amid the pandemic where retailers could just not keep their stores open, let alone offer the`try before buying' option. Integrating AR into the ecosystem has helped a few brands overcome this obstacle. Ultarecently did this. Previously, a significant percentage of their customers purchasedproductsafter trying out in-store and opting for the ones that best suited them. The beauty brand now offers virtual trials that customers can avail from the safety of their homes through their tool GLAMLab. The brand has seen a 7x increase in engagement and close to 50 million foundation shades trialed since the beginning of COVID-19.Another similar instance is that of L'Oreal's Make Up Genius bar. It's not just beauty brands offering virtual AR and VR based trials to customers.Swarovski's Atelier Home Décor line does just this. Apple recently brought in an update to its Quick Look AR tool to enable a direct checkout option. Nielsen's observation is that this pandemic has been an `unexpected catalyst' for the uptake of AR and VR in retail. Visualization Can Help Avoid Missing Growth Opportunities Today and, in the Future,Though several companies had embarked on their own digitization journeys pre-COVID-19, one key facet of digitization was missing from their plan - visualization. Retailers and brands can bridge this gap with AR & VR. What willfurther fuel the uptake? Work-from-home (WFH) demands, virtual socializing needs, and contactless processes on the customer front, and reduced budgets and pauses on advertising on the business side. Another factor is the devices' ability to provide a safe and hygienic way of socializing. Looking ahead to a time when shoppers are back in store aisles, retailers can use AR to ensure that their customers quickly find what they are looking for, while reducing exposure and maintaining social distancing norms. Though many nations have emerged (rather cautiously) from their shelter-in-place mandate, people are still skeptical about venturing into crowded spaces like malls and shopping centers. Through AR and VR, people can visit stores, interact with other shoppers and experience part of the thrill of making a purchase - virtually. Retailers can take inspiration from what Lowe did a couple of years ago. When the retailer understood that almost $70 billion was being missed in abandoned carts because customers were unable to find specific products for home improvement projects, they turned to AR. Their AR-enabled app allowed customers to quickly and efficiently find what they were looking for, by simply directing them through the store. To make the shopping experience more complete, they can even offer virtual shopping consultants. All these instances of AR and VR utility in retail and other industries show just how pervasive the two technologies can be, while bringing in unprecedented benefits and value to businesses.
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