46% of retailers say they’ll use AR and VR to drive revenue by 2020

By next year 100 million consumers will shop online or in-store using augmented reality (AR) as the advent of 5G promises to enhance the technology.

According to business research and advisory group Garter, both AR and virtual reality (VR) technologies will be rolled out in 46 per cent of retail stores by 2020, in order to meet increasingly demanding consumer expectations.

“Retailers are under increasing pressure to explain the purpose of physical stores, and take control of the fulfilment and return process for cross-channel execution,” Garter’s principle research analyst Hanna Karki said.

“Consumers are progressively defining the value provided by the experiences they receive from retailers. As a result of these pressures, retailers are turning to AR and VR to offer customers a unified retail experience inside and outside retail stores.”

READ MORE: Curve unveils world’s first AR payment app

This integration is expected to be further accelerated by the introduction of 5G worldwide in 2020, promising extremely high bandwidth and extremely low latency, allowing for real time rendering of immersive video and shorter download and setup times.

A separate Garter survey indicated that AR and VR applications of 5G represent the highest expectations for driving new revenues in retail, allowing brands to extend the shopping experience beyond stores.

Garter’s senior research director Sylvian Fabre added: “Gartner expects that the implementation of 5G and AR or VR in stores will transform not only customer engagement but also the entire product management cycle of brands.”

“5G can optimise warehouse resources, enhance store traffic analytics and enable beacons that communicate with shoppers’ smartphones.”

Click here to sign up to Charged free daily email newsletter

1 Comment. Leave new

I really struggle to understand the value of these ‘intent surveys’ that ask retailers what they’d like to do. They always hugely over-state the opportunity of headline grabbing tech and ignore the operational realities of integrating such tech, as well as real consumer adoption patterns and raw technology penetration figures, not to mention any credible shopper use cases or commercial benefits. Also, point of fact, 5G has absolutely nothing to do with ‘enabling Beacons’. McKinsey have also released a similar VR/AR trumpeting report (see page 9): https://www.periscope-solutions.com/download.aspx?fileID=3600 – which IMO also overstates the immediate impact of this technology.

Reply

Leave a Reply

Your email address will not be published. Required fields are marked *