Commerce platforms work in a “browse, choose, click to buy & checkout, but emerging tech will change this to “browse, experience & buy virtually or physically. As per Cathy Hackl (Globally recognized emerging tech strategist) Virtual and Physical commerce collide as we enable the creation of the virtual world & it will create new commerce channel like Virtual to Virtual, Virtual to physical & physical to virtual. Emerging tech and its associated technologies like Generative AI, Metaverse, XR &?digital twins are also more personal in nature & will enhance commerce experience.
- Direct to Avatar: - The D2A (Direct to Avatar) model is rapidly expanding within the gaming industry, featuring digital assets such as stickers for messaging apps, outfits for gaming avatars, collectibles, and virtual cars and houses. According to Statista, the market for in-game virtual goods is expected to surpass $200 billion by 2025. Prominent consumer brands like Nike, Adidas, Burberry, and Taco Bell are already engaging in the virtual gaming world through platforms like Roblox and Fortnite, offering their products as virtual goods, often in partnership with gaming influencers. Kerry Murphy, the founder of The Fabricant, offers insight into the D2A economy by introducing the concept of "Digi-sapiens." He describes Digi-sapiens as Gen Z and young millennials who have grown up with a seamless blend of reality and fantasy, making the virtual world their second home. These individuals are not just passive participants; they are the trendsetters and trend chasers, eagerly adopting any new technology that enhances their digital existence and provides greater freedom. Murphy emphasizes that Digi-sapiens are at the forefront of digital trends, pushing the boundaries of how virtual goods are perceived and utilized, and driving the evolution of the D2A economy.
- Virtual Try On: - Virtual try-on commerce activations utilize cutting-edge technologies like extended reality (XR) and fully virtual storefronts. These advancements provide users with the ability to navigate a virtual store, view product displays, and use AR/VR filters to visualize how products would look in their homes or on themselves before making a purchase. Technologies like XR and virtual storefronts create a seamless and immersive shopping experience that enhances user comfort and confidence. Virtual try-on using XR has become essential for brands in various sectors, including clothing, fashion, beauty, shoes, jewellery, and watches. These tools allow customers to virtually try on clothes, makeup, and skincare products without the need to physically visit a store. This technology not only enhances the shopping experience but also bridges the gap between online and in-store shopping. For instance, Prada has leveraged Snap's hands-free try-on technology, which detects hand gestures and allows users to set down their phones and try on Prada handbags. By using swiping gestures, users can switch the colours of the products, offering a highly interactive and engaging experience. This innovative approach demonstrates how brands can use XR to offer personalized and convenient shopping experiences that resonate with today's tech-savvy consumers. Amazon & Flipkart, an e-commerce giant, also employs XR tools for products like furniture, and large appliances to enhance user experience and help customers make more informed decisions. These immersive technologies allow customers to transition from merely imagining products to experiencing them before making a purchase decision. This not only boosts customer confidence by removing guesswork but also enables them to make purchasing decisions comfortably from their homes.
- Generative AI & Commerce: - Generative AI revolutionizes the shopping experience by delivering personalized recommendations that cater to each customer's unique preferences and behavior. It simplifies the search process, generates captivating content, and provides real-time assistance through AI-driven chatbots, making the shopping journey more seamless and enjoyable. Additionally, generative AI helps commerce teams develop competitive pricing strategies by analysing competitors' prices and various market factors. Marketers can harness AI to craft compelling product descriptions, optimize them for SEO, and automatically pair them with suitable images. GenAI extends its capabilities to creating product data in your Product Information Management (PIM) system and designing marketing emails. By leveraging data, it unlocks advanced applications and use cases. For example, Amazon Fashion's Generative AI-powered outfit builder helps customers discover fashion items and suggests complementary products to complete their looks.
