The Rise of Immersive Virtual Shopping

With immersive shopping trends quickly catching on, the Metaverse, accessed through AR and VR, is becoming the new mall! Web2 introduced social media and interactive websites, completely transforming the e-commerce landscape and the way consumers discovered brands. Nowadays, with the emergence of Web3 and immersive technologies, the shopping experience is being completely reinvented. Leveraging these technologies, a rising number of retailers are offering customers dynamic and stimulating shopping experiences. A report by GEEIQ projected that virtual environments for personal care and cosmetics will grow 179% by 2025. In fact, compelling statistics from a January 2022 survey revealed that an astonishing 70% of visitors to virtual stores ultimately made a purchase, underscoring the effectiveness of such experiences.?

The Rise of Immersive Virtual Shopping?

What is Immersive Virtual Shopping

Mirroring the experience of stepping into a store at a mall, by using visionary gadgets, goggles, and gears, we are transported into a virtual shop right from the comfort of our homes (in our pajamas!). The virtual shop is intended to emulate an in-person experience where you can browse, pick up, try on, and even interact with different objects. Some shops have even introduced special effects that are only possible in the virtual environment and defy real-world limitations, such as gravity manipulation, material and spatial distortion, and other interactive personalized activations that enhance the immersive experience.

Impact on Consumer?

Immersive virtual shopping has the potential to democratize luxury, making it accessible to a wider audience. By breaking down geographical barriers and eliminating the need for physical store visits, immersive virtual shopping platforms provide an opportunity for individuals across the globe, regardless of socioeconomic status, to explore and experience products and services. This level of accessibility also allows individuals who may not have had the opportunity to physically visit luxury stores to appreciate the craftsmanship, design, and quality associated with luxury brands, breaking typical traditional fashion barriers.??

In recent years, the fashion industry has begun blending its campaigns with gamification strategies as a way to playfully target a younger audience, in other words, the consumers of tomorrow. Brands such as Balenciaga in December 2021 with Afterworld, Louis Vuitton in August 2021 with Louis the Game, and most recently Maison Margiela in October 2023 with its gamified (and free!) mint, have generated immense buzz with their campaigns and piqued the interest of fashion enthusiasts and devoted gamers across the board. Through minigames, quests, and contests, brands are finding novel methods to captivate their audience and enhance loyalty programs so users can win exclusive rewards while participating in a memorable experience.?

Impact on Brands

Brands that move into virtual shopping are generating buzz while championing digital innovation, and as early adopters, they can expect a surge in brand visibility and loyalty. Olga Dogadkina, co-founder and CEO of Emperia, noted that incorporating personalization and storytelling into online retail can greatly enhance brand loyalty and overall performance. In today's digital landscape, users have higher expectations for their online shopping experiences. They seek a more engaging journey that aligns with the brand's values and caters to their unique needs, desires, and preferences. What’s more? Through these strategies, companies can strategically collect extremely valuable data that will further optimize operations, enhance a brand's image, and set it apart from competitors.

VR Platforms and Services

Companies such as Obsess and Emperia are leading global platforms that use 3D technologies to make shoppable storefronts and experiences in VR possible. Collectively, Obsess and Emperia have built more than 250 virtual stores for major global retailers, designers, and museums, spearheading the VR commerce economy. Top partners include Lululemon, Dior, Coach, Prada, Fendi, Dyson, American Girl, Charlotte Tilbury, and the list goes on. By leveraging the services offered by these platforms, VR emerges as a powerful tool for crafting immersive environments and compelling narratives, allowing brands to engage with their digitally savvy audience in interactive ways.

Using engaging integrations such as multi-touch demonstrations and video explainers that combine physical and virtual interactions, platforms like Emperia offer capabilities that can effectively educate customers about the value of the product. The platforms also offer tools that extend beyond real-time interactions; brands can integrate the virtual storefront with existing e-commerce stock management software to track demographics, store activities, and purchases, and ultimately solve user experience and engagement issues.?

Successful Immersive Shopping Campaigns?

Crocs

In July 2023, quirky footwear giant Crocs forged a partnership with Obsess, opening its virtual store. The highly interactive “Crocs Jibbitz Experience” involves a Jibbitz claw game that rewards players with special discounts and a platform to customize your own clog with an assortment of Jibbitz. After customizing, players directly shop the shoe along with the Jibbitz. This riveting journey reimagines Crocs’ customization journey and resonates with its youthful audience while staying aligned with its fun and playful branding.

Lacoste

In the same month, Emperia developed a truly remarkable virtual store for Lacoste, seamlessly fusing alluring visuals and bright colors with the featured clothing line, shoes, and accessories. The store was available solely to members of Le Club Lacoste and UNDW3, the brand’s loyalty program and Web3 community. As part of this thrilling campaign, in-person shoppers were invited to activate the experience by simply scanning the QR code attached to each physical item of the collection in-store, granting them access to a digital twin of the product to be redeemed using AR technology. The virtual experience was immaculately executed, and Lacoste’s focus on its loyal fans sparked excitement in the fashion and Web3 communities, setting the stage for a new era of retail.

Gucci

During Milan Fashion Week in September 2023, in partnership with Roblox, Gucci launched the rebranded Gucci Town, coined “Gucci Ancora”. Gucci Ancora served as a platform where both participants from the live event and those who were unable to attend the in-person show could still engage virtually and participate in immersive games to win prizes and unlock various elements. By playing minigames and completing various tasks and quests online, participants can collect up to 16 exquisite virtual fashion items from Gucci’s 2024 Spring Collection. Gucci Ancora offered a dynamic and inclusive experience that allowed fashion week attendees to go beyond passive observation and actively indulge in the fashion experience and learn about Gucci’s heritage.?

Challenges and Considerations of Immersive Virtual Shopping?

Immersive virtual shopping brings a range of opportunities, but it also presents various challenges and considerations, especially when it comes to widespread adoption.

Accessibility and Hardware Requirements?

When it comes to accessing the Web3 experience, it can come at a relatively high cost for both brands and consumers. For in-store activations, brands may need to invest in hardware such as VR headsets or goggles, while those at home will need to own a pair of compatible gear themselves to fully participate in the virtual shops. Such barriers can severely limit the reach brands have while operating a virtual experience – therefore, companies need to strike a balance between the quality of immersion and accessibility.

Addressing Privacy and Security Concerns?

Virtual shop technologies are advancing, but in their current state, a few privacy and security concerns still persist. Shopping platforms handle sensitive customer data, including personal information and payment details, and are not entirely immune to potential data leaks that may severely harm the brand and its shoppers.?

Limited Capabilities?

Although virtual shops offer a higher level of interactivity compared to the Web2 experiences we are used to, they still fall short of fully replicating the in-store experience found in the physical world. One prominent limitation is the lack of a tactile "touch and feel" aspect for customers. Hence, when considering appropriate immersive strategies, it's essential to acknowledge that VR and AR technologies may not be suitable for every product category. Virtual shops must effectively showcase products in a visually captivating and informative manner. In the virtual realm, it is important for brands to ensure accurate representations, high-quality images, and detailed product information to compensate for the inability to physically touch and examine items.

Future Trends and Possibilities?

Expansion of Virtual Showrooms

Virtual shopping opens a whole new arena for brands to play in. Brands can leverage these shopping platforms to market their products to a new generation of customers. These virtual showrooms can be used as a way to show off your products, hook customers, and generate traffic for your physical stores as well.?

Social and Collaborative Experiences?

The metaverse is a dynamic space for interaction that transcends being just a mere showcase platform for brands. Imagine a world where you could shop with your friends without any of you leaving your homes or even make new friends with a shared passion you otherwise may never cross paths with. That’s the vision that Web3 and virtual shopping are selling us. Web3 introduces an unprecedented social dimension through its co-creation element. By encouraging active participation and shared creativity, the dynamic between brands and consumers is being redefined.?

Simulations

The potential of this technology extends far beyond socializing and shopping. The technology has a wide array of applications, including simulating real-world scenarios to help companies train their employees to improve customer interactions, product demonstrations, and protocols during emergencies. VR can also be utilized to change store layouts by enabling dynamic configurations and optimal product displays.

To Wrap Up

As Web3 powers through retail, brands have a lot more to offer consumers. Virtual shops foster inclusivity, diversity, and broader participation in the world of high-end fashion, design, and craftsmanship. Not only does it enable a wider reach, but Web3 also delivers vastly interactive experiences that deepen the relationships between brands and consumers. An influx of global brands is already shifting into the virtual space, and those that embrace these advancements will maintain their relevance and provide consumers with unmatched experiences that transcend the boundaries of traditional retail. Has your brand started exploring the possibilities of the virtual world yet???

About Olivia Lee

An insightful strategist immersed in the metaverse, shaping the future of fashion, beauty, and lifestyle in the digital universe, and championing women-led initiatives.

About LIVVIUM

LIVVIUM bridges the digital frontier, guiding brands through immersive commerce, metaverse exploration, and Web3 thought leadership to thrive in tomorrow's connected world.

Sources

• The New Luxury Loves Gamification, But How Does The Gaming World Like This Intrusion? (The Next Cartel, November 3, 2022)
• Playing the game of luxury brands (Luxury Tribune, June 3, 2020)
• When Fashion Week Went Digital: What #DWF2023 Says about the State of Luxury Retail & Technology (Epam, October 26, 2023)
• From Digital Gucci To Blockchain Supply Chains: Retail's Web3 Revolution (Forbes, October 27, 2023)
• Immersive interactive technologies and virtual shopping experiences: Differences in consumer perceptions between augmented reality (AR) and virtual reality (VR) (ScienceDirect, June 27, 2022)
• The Impact of Virtual Reality on In-Store Shopping Revolutionizing the Retail Experience (Rwizen Technologies, March 10, 2023)
• Emperia interactivity (Linkedin, Oct 2023)?
• Lacoste’s latest virtual store doubles down on exclusive experiences for loyalty members (Retail Dive, July 28, 2023)
• Lacoste Expands NFT Loyalty Experiences in New Virtual Store (Retail TouchPoints, August 1, 2023)
• Crocs Opens Virtual Store for Customizable Sandals in the Metaverse (Cryptofiles, June 25, 2023)
• Why L’Occitane’s New Virtual Store Uses Gaming And Personalization (Forbes, November 1, 2023)