AR, VR, XR key to revolutionizing buying experience

According to experts, immersive technologies like virtual, augmented, and extended realities have the power to transform how consumers purchase by generating engaging consumer experiences on e-commerce platforms and simulating products in virtual environments. Together with Alifish, the company online licensing platform, Damo Academy, the research institute of the Alibaba Group, a major player in Chinese technology, has launched an extended reality-powered marketplace on Tmall and Taobao where customers can purchase goods as their own personalized avatars.
Head of Damo Academy XR laboratory Bo Liefeng stated, We believe XR technology can revolutionize the online consumption trend in such a way that it creates new business opportunities for brands. Virtual storefronts featuring over thirty globally renowned media franchises are available for consumers to peruse, such as Sanrio Hello Kitty from Japan and Universal Pictures Minions from the US. The avatars of shoppers are able to add virtual goods to their virtual shopping carts if they locate something they like. On Tmall, customers may see products in 360 degrees and virtually try on shoes, jewelry, and watches. This also applies to household appliances. Customers can check if the furniture matches the photos of their homes by tapping the displays of their phones. Immersion retail is also being adopted by Tmall Luxury Pavilion, Alibaba portal for premium shopping. Luxury items with 3D and augmented reality capabilities witnessed double-digit year- over-year growth in sales in 2022. The use of VR and AR technologies in online marketplaces has not only increased consumption and enhanced consumers remote shopping experience, but it has also started a new trend in consumer behavior, stated Yu Jianing, the executive director of the industry committee for the metaverse at the China Mobile Communications Association, a Beijing-based organization. Chinese online retailer To assist customers in trying on various cosmetics on their faces with actual makeup effects before making a purchase, JD has introduced new AR/VR makeup functions. Customers can virtually try things like lipstick, blush, colored contact lenses, and eyebrow pencils by downloading the company smartphone app. The company wants to provide digitally aware clients with an engaging in-store experience with AR/VR, along with the ease of things being just a click away from being delivered to their doorstep, JD

In addition, JD has launched an online platform that allows customers to browse furniture and home goods by entering a virtual world. More than 1,000 firms have partnered with it, and it has produced 3D models for more than 100,000 products, including kitchenware, furniture, soft decorations, building supplies, and other home items. According to a survey produced by global market consultancy International Data Corp., the VR and AR industries are predicted to grow rapidly over the next few years and provide new momentum to a wide range of sectors like retail, education, healthcare, and entertainment. According to IDC data, the global AR and VR industries are expected to see investments amounting to $74.73 billion by 2026, growing at a compound annual growth rate of 38.5 percent. In particular, the Chinese market is predicted to have the highest global CAGR throughout this time, at 43.8 percent. A proposal to incorporate VR technology into industrial applications was jointly issued last year by the Ministry of Industry and Information Technology and several other ministries. According to the strategy, China VR industry would be worth more than 350 billion yuan ($47.9 billion) by 2026 when all related gear, software, and applications are included. In the meantime, the nation wants to develop 100 businesses with a strong focus on innovation and industry influence, and sales of VR terminals should reach the top 25.
AR and VR have the potential to completely change the retail industry, according to a report by global market research firm Gartner. Retailers may engage customers in immersive surroundings and increase sales by utilizing augmented reality (AR) as an extension of their brand experience. According to Jennifer Ye, the consumer markets leader for the Chinese mainland at multinational accounting firm PwC, brands should enhance their product innovation capabilities, increase research and development investment, and continuously create new products that meet actual needs of consumers. According to Ye, retailers need to be ready for a swift change as technology developments pick up speed. This includes modernizing both offline and online storefronts to remain relevant to
customers. She stated Retailers should look to enrich customer experiences through the development of online communities in the metaverse where VR avatars can come together and discuss shared interests. Businesses should seize the creative opportunities presented by highly potential and malleable technology.