Mixed Commerce and Virtual Reality

Mixed Commerce and Virtual Reality For Home Furnishings and Designing Spaces

CONTENTS 03. What is Mixed Commerce?

Mixed Commerce for Products and Spaces

05. Fabrics and Finishes 06. Cabinets, Counters and Hardware 07. Model Homes 08. Major Appliances 09. Home Furnishings 10. A New Vision for Products and Spaces 11. Get Started

What is Mixed Commerce? Take one look around your local shopping plaza, and you might see a few signs of an industry in turmoil. Brick-and-mortar retailers are shuttering physical locations at an alarming rate. Empty storefronts, unbalanced inventory and costly retail square footage contribute to shrinking profits. The rise of online shopping is a culprit, but customers still crave certain in-store experiences that the internet can’t replace. That’s especially true in home design, remodeling and furnishing, where “non-digital” attributes like touch and comfort have driven consumers into retail stores for decades. So, there’s real opportunity for retailers who are able to strike a balance between the physical and online worlds, reducing their footprint but continuing to engage customers in-person. Enter “mixed commerce,” a new retail format where augmented and virtual reality blend traditional brick and mortar stores with e-commerce. Mixed commerce unites online, in-store and at-home shopping into one confidence-building, awe-inspiring visual journey, leading to greater customer satisfaction and brand loyalty.

Pulling Up Anchor When a major department store shuts down its “anchor” store in a mall, it creates a domino effect. “Co-tenancy clauses” allow other stores in the mall to end or renegotiate their leases, driving down rents for the mall operator. Since it’s nearly impossible to find a replacement tenant to fill the huge space of an anchor store, this trend has put $48 billion in mall property loans at risk.1 Business Insider

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MIXED COMMERCE AND VIRTUAL REALITY 3

Bricks and Clicks

Mixed Commerce in Products and Spaces

By the Numbers2 shopping mall 1970s US development boom begins

23.5

sq ft of retail space per person in US, most worldwide (Canada is #2, at 16.4)

2001

with stores closing, the national vacancy rate for malls begins to climb

9.4%

peak vacancy rate for US regional malls, reached in Q3 2011

170%

growth of ecommerce sales as percentage of US retail sales from 2006 to 2016

25%

percentage of US dept stores that would need to close for sales-per-sq-ft to regain levels from 2006

$523b 200

expected growth of US ecommerce sales through 2020 number of US malls at risk to shutter due to Sears’ ongoing closure of anchor stores

Smithsonian Magazine, Morningstar, Reis, Reis, US Dept of Commerce, Green Street Advisors, Forrester, Credit Suisse 3 Retail Perceptions 2

In traditional retail, 3D models, scenes and online content help stores get more out of every square foot by creating fun, engaging in-store experiences that turn browsing into buying. Retailers also don’t have to stock as much inventory because a customer can see several product varieties via augmented reality. Endless aisles in virtual reality liberate retailers from the costly square footage that goes into a formal showroom, while still dazzling customers with vast inventory. How can mixed commerce concepts help with home design, remodeling and home furnishing sales challenges? By empowering customers to visualize everything from the details of new kitchen cabinetry to the full layout of a new home, emerging technologies can combine with in-person selling to boost consumer confidence and increase the likelihood they will make a purchase.

55%

of consumers say AR makes shopping more fun3

68%

said they’d spend more time at a retailer if they could shop with AR/VR3

Someone buying a new couch wants to feel the fabric and experience its comfort and quality before they buy. Visualization is also important—a buyer would want to see how that new couch will look in their home before committing. These factors all apply to appliance shopping, hardware and other home products. Augmented and virtual reality bridge the gap between the real and the virtual by allowing consumers to interact with and manipulate an unlimited inventory of realistic 3D models. Add a small number of product samples and a trained concierge as a guide, and you have a cost-effective way to build customer trust and access full inventory without a vast store footprint. Here’s how augmented and virtual reality can revolutionize how consumers buy furniture, appliances, cabinets, countertops and much more.


Fabrics and Finishes Mixed Commerce in Fabrics and Finishes • Helps buyers articulate design ideas • Eliminates buyer’s remorse • Offers endless inventory of finishes, textures and patterns • Allows homeowners to share and view design ideas remotely • Offers realistic view of the scale of items in the buyer’s home A stroll through the gallery at their local home goods store provides the inspiration homebuyers need to make big décor decisions.

Visualize custom home finishes in VR

Augmented and virtual reality take this experience a step further. Retailers can expand showroom boundaries with an infinite virtual inventory and interactive shopping experience that excites buyers. Know it When You See It

Endless Inventory, Endless Options

Homeowners might love the idea of paisley wallpaper and plaid upholstery, until they actually see it in their house. In virtual reality, an in-store concierge can show buyers exactly how their décor would look in a realistic rendering of their home. It’s an engaging way to compare ideas from every angle.

Buyers want options. With augmented and virtual reality, home goods stores can offer an endless inventory of colors, textures, patterns and styles for furnishings and fabrics. It’s a great way to help an indecisive homeowner settle on a style they’ll love, without the need for a fully stocked storeroom.


Cabinets, Counters and Hardware Given the big price tag, it’s no surprise that customers need every last detail of a kitchen or bath remodel planned out. You don’t get an easy do-over on new cabinets once they’re nailed down.

Augmented and virtual reality allow homeowners to preview and select the perfect cabinetry, fixtures, flooring and hardware styles for their new kitchen or bathroom, all within their renovation budget.

A New Room, Bit by Bit Contractors, designers or home improvement stores can create a virtual 3D model of a room, and then let homeowners customize it piece by piece. If they don’t like the way that crown molding works with those cabinets, buyers can pick from a full inventory of products and materials to find the right fit. Every Detail Accounted For

Mixed Commerce in Design and Build It’s one thing to see hardwood cabinetry on a showroom floor. It’s another to actually see it installed in a new kitchen. Marxent developed the Lowe’s Holoroom experience to bridge that gap in two steps, first with a trained sales associate that helps buyers design their remodel, and then by using virtual reality to preview selections in 3D. The Lowe’s concierge helps buyers tweak selections in real time, moving them toward a final design that meets their budget and personal tastes.

See how the Lowe’s Holoroom works

Precision is a major benefit of AR experiences. With each 3D model designed for scale and accuracy, homeowners can double check every detail, from the reflectiveness of a chrome faucet to the gloss of a granite countertop. The result? Confident purchasing decisions and happier homeowners.

Model Homes

An empty lot of land offers endless possibilities for hopeful homeowners. But, builders know that before you break ground, you have to settle on a design that works for the homebuyer. Bringing mixed commerce to the showroom or model home community helps buyers get excited about building the home of their dreams. With augmented and virtual reality, they can envision and tailor every detail in the moment. Real-Time Custom Home Design Augmented reality enhances any buyer’s tour through a model home community or showroom. If they love a certain kitchen layout but hate the countertops, buyers can virtually change colors and materials to find a style they prefer. Real-time visualization can lead to quicker, more confident buying decisions. The Showroom Goes Virtual Virtual reality lets builders create digital showrooms that buyers can tour and customize remotely – useful for buyers who can’t visit your model homes in person. These tours help buyers visualize themselves in a new home and get a sense for intangibles, like traffic patterns through living spaces.

Mixed Commerce and Model Homes • • • • •

Design an immersive, interactive showroom experience Offer interior, exterior and cross-section views Tailor it: Pop on a new roof or delete a dormer instantly Give out-of-town homebuyers a virtual tour of their home Re-use pre-built virtual assets on multiple projects


See what a virtual showroom looks like

Major Appliances

When buying a new refrigerator, oven or dishwasher, customers want to make sure it has the features they want and fits the style of their kitchen. That’s function and form. Checking out the floor models in-store can give a sense of features. By blending virtual reality and real life in a mixed commerce experience, retailers can also make style decisions much easier for buyers. Interactive Appliance Shopping Led by a store assistant, buyers can take a deeper dive into the technical features that make an appliance stand out from the pack. They can call up product details in an on-screen display to learn about a dishwasher’s eco-settings or a fridge’s built-in Internet of Things (IoT) connectivity, for example. See the Product in Your Home

Mixed Commerce in Appliance Buying VisualCommerce™ Touchscreen Showroom is an innovative retail solution for brands looking to attract customers with an eye-catching, customizable point of sale experience. Ideal for showcasing large appliances, home renovation upgrades, or any product for which there are a large number of mix-and-match features, Touchscreen Showroom is a great way to get potential customers to explore your full range of products, finishes and options in traditional retail environments, pop-up stores, or non-traditional locations.

Want a great way to build buyer confidence? Let them size up your product in their actual home. Through an augmented reality app, buyers can impose a 3D model of their new washer and dryer right in their real-life laundry room. It’s a foolproof way to see if a new appliance is the right size and style.


See the Touchscreen Showroom in action

Home Furnishings Everyone’s laid on a mattress at a furniture outlet to see if it’s comfortable. Augmented and virtual reality lets buyers learn about how the mattress is composed, plus see it on different bed frames and bedroom sets. This gives buyers more tools to make a purchasing decision, in a way that’s interactive and that doesn’t require a storage warehouse full of floor models.

Informative Virtual Product Demos

Every Detail, Customized

Customers want comfort. More information helps them shop smarter. With a virtual 3D model, shoppers can peel back mattress layers to compare the comfort benefits of spring coils versus memory foam. Or, they can examine a sofa frame from the inside out to see if it meets their comfort needs.

Fabrics, colors, styles – an entire store inventory can be recreated virtually for a mixed commerce experience. Shoppers can lay out the living room of their dreams and tailor it any way they want. They’ll benefit from a fun and engaging shopping experience from selection to purchase.

Mixed Commerce in Furniture Shopping Lay-Z-Boy and Serta maker True Innovations designed an augmented reality app with VR mode in preparation for High Point Market, the furniture industry’s largest trade show. The app let furniture buyers view extensive variations on their product line in detail, down to the last seam. It was an eye-catching and memorable hook for the buyers who tried it, and True Innovations didn’t have to ship and find room for endless products in a cramped exhibit booth.

Click to see the Lay-Z-Boy app


A New Vision for Products and Spaces

Ecommerce is on the rise, but customers still love heading to the store or showroom as long as it’s worth the effort. That’s why so many retailers are exploring ways to make their in-store experiences more magical, helpful and engaging. Mixed commerce fits perfectly in this new era of experience-led retail. It can be especially valuable in the home products industry, where “non-digital” attributes like touch, comfort and quality are important buying factors.

Whether you’re a furniture retailer or a building products manufacturer, virtual and augmented reality can help you create experiences that: • Engage and Inform Shoppers by giving them interactive tools to visualize and customize • Get Customers Excited by bringing their ideas to life in real-life or realistic settings • Turn Browsing into Buying by making it easier for customers to imagine their ideal home

Ultimately, mixed commerce helps retailers get in front of consumers no matter where or when they shop, while also moving away from costly and limiting showroom space, and driving higher sales per square foot from a smaller location. Mixed commerce is the best way to succeed at a time when our physical and digital worlds are colliding. The result is happier customers, smarter inventory management, and more profits from stores.

GET STARTED

The award-winning suite of solutions for manufacturers, retailers and homebuilders, VisualCommerce™ brings the power of virtual reality and augmented reality to the home design and products shopping experiences. Our complete, ready-to-roll showroom solutions are designed to bridge digital and physical shopping with end-user applications that are tailored to how you sell — in the field, online or in a physical retail showroom environment.

Talk to a consultant to find out how others are using virtual reality to inspire their customers

[email protected] 727-851-9522