Digital Innovators: Augmented Reality and Virtual Reality

Delivery

This report comes in PPT.

Key Findings

As digital commerce advances, the role of AR/VR in digital engagement is increasingly appreciated

AR/VR is increasing its application in commerce, and is playing a major role in developing stronger brand engagement and enhancing consumers’ path to purchase. The rapid development and emergence of mixed reality is set to further boost the role and applications of AR/VR in commerce.

Key challenges in AR/VR usage

From consumers’ perspective, the cost of headsets and limited content availability have been the key factors in low usage of these technologies. Increased consumer awareness and regulation have, however, reduced concerns regarding privacy and safety risks, leading to a greater appetite for more practical applications of AR/VR.

AR/VR to strengthen mobile commerce

With the social media platforms Snapchat and Facebook integrating AR filters and APIs into their platforms, enhanced user awareness, creativity and reduced concerns regarding privacy have boosted adoption of these technologies. This is expected to drive greater use of mobile-led platforms, leading many retailers and brands to integrate AR in product visualisation through mobile applications.

A lack of clear use cases has been a barrier to investment

The lack of a clear use case has been a widely reported reason for a lack of investment in AR/VR, as well as lack of knowledge and high implementation costs.

Coronavirus to change the future for AR/VR

As coronavirus (COVID-19) reshapes norms and brings distinct changes in the way consumers shop, AR/VR’s role in enhancing the path to purchase, replicating physical environments online and driving digital engagement will be seen through a new lens, which will amplify the case for investing in AR/VR for many businesses over the forecast period.