The role of AR and VR technologies in the post-war recovery of Ukrainian business

Ukraine is in extremely difficult conditions of unmotivated Russian military aggression aimed at the destruction of our state. A large number of civilians suffered physical and psychological injuries, many soldiers gave their lives for the freedom of Ukraine, a considerable number of defenders were injured. About 30% of Ukrainian enterprises have completely stopped their economic activity, and only 45% are partially working.

Post-war recovery is extremely necessary for enterprises. And here the use of digital technologies can become an important accelerating factor. Immersive technologies, which include augmented and virtual reality, become a fast and high-quality "pill" here.

What is immersiveness? It sounds complicated, but let's figure it out!

Immersive technologies are technologies of visual, audio and partially tactile human immersion in the created 3D world.

This is an alternative space that is created using 3D graphics and that a person sees in special virtual reality glasses or activates with a smartphone in augmented reality. A person can interact with the 3D elements of this alternative space.

On the one hand, businesses get more profit when they integrate new trending technologies into their production and marketing strategies. On the other hand, technologies, as a rule, entail investments, the payback of which has a certain period. In the conditions of martial law, business in Ukraine suffers great losses. Some of the enterprises have closed down, some are half-functioning, and the consumer demand and income of the third have significantly decreased. At the same time, there is a trend of relocation and rapid entry of Ukrainian brands into international markets.

In this way, Ukrainian business faces a problem: the lack of stable profit limits investment capacity, but at the same time, the latest marketing and production innovations are needed. They will lead to faster rates of business growth in the international arena. Accordingly, it is necessary to find a balance between investment costs and the efficiency of the implemented technology.

Augmented and virtual reality technologies can be useful in this business.

There are two main reasons for this:

1. The modern consumer is an immersive consumer.

He wants interaction with the product, he wants to immerse himself in the product. It is no longer enough for him to simply look at the product in the picture in the online store to make a final purchase decision. He wants to try this washing machine at home in real size and real shape in two clicks in 30 seconds. It is no longer enough for him to simply imagine what his future apartment will be like, looking at the blueprint. He prefers to put on virtual reality glasses and be in this apartment - see the quality of the walls, the floor and admire the 360-degree view from the window.

2. Integrating immersive technologies into marketing activities for brands will not immediately be measured by investments of hundreds of thousands of dollars

This is a positive thing in today's war-related recession. Accordingly, the role of immersive technologies in the form of augmented, virtual reality and 3D can become a significant incentive for business in the context of post-war reconstruction of production and marketing strategies.

Today, more than ever, the digital world, games and the real world are closely connected. Immersiveness invites the consumer to mix the real world with elements of the game, to immerse himself in socio-economic processes and financial transactions in the digital environment.

For businesses, this means that it is necessary to look for opportunities to promote and sell products not only on the shelves of a physical store or a classic Internet site, but also in the virtual space.

Therefore, it is no longer enough for shoe manufacturers to sell 100 million pairs of sneakers per year in retail chains. Marketing needs to be set up so that at least 1 million more pairs of sneakers are sold as NFTs for digital avatars in the metaverse. In 2021 alone, people spent at least $200 million on metaverse items. And the manufacturers of these items are real businessmen, not gamers or 3D designers.

This is a real opportunity for Ukrainian business, which lost markets as a result of the war.

Augmented and virtual reality in the household goods segment

Let's take a Ukrainian manufacturer of household goods. Entering the international market, he faces a lot of competition, a fight for a new foreign customer, problems with logistics, etc.

According to data from Retail Customer Experience and BigCommerce, 61% of customers in America prefer online stores that offer the option of trying on products in augmented reality. Product pages that offer AR and 3D led to a 13% increase in average order size and a 21% increase in revenue

That is, the Ukrainian manufacturer needs to immerse the potential consumer in his product. By setting up the site in such a way that the consumer can in two clicks put a table in front of him in the room in real size and real shape, look at the quality of its texture and choose his color to match the renovation.

All this is possible with the help of augmented reality technology, which allows you to make sure that the product reaches the consumer's home before the moment of direct purchase. This significantly increases the probability of its future acquisition.

In addition, according to ARInsider, Shopify provides the following analytics. A product that was primarily tested by a consumer in augmented reality is returned to the store 40% less often. This is a solution to a very important "pain point" for Ukrainian brands producing household goods, especially small and medium-sized businesses.

Investments in setting up such an option on more than 50 product items will be in the range of $5-15 thousand.        

Augmented and virtual reality in the clothing segment

Let's take the second example - a Ukrainian clothing designer. We see many world stars wearing our brand's clothes. Today, in connection with military operations, consumer activity in the clothing market has dropped significantly, and designers need to enter international markets. It is necessary to go out as Ukrainians know how - creatively, brightly and with taste. Immersive technologies help in this again.

Ukrainian designers on social networks - SnapChat, Instagram, Facebook - can create an option for trying on clothes using augmented reality. According to Deloitte Digital with Snap Inc , brand awareness is twice as good with AR. 75% of surveyed respondents indicate that they are ready to pay more for a product that has the option of a high-quality 3D fitting using augmented reality.

It is important to understand that for a brand, the creation of AR clothing fittings is also of an image nature. This increases brand social media reach, loyalty, engagement time with brand content, and paves the way for placing digital 3D versions of clothing in the virtual world (metaworld) in the form of NFTs. And the complex of these factors makes it possible to increase recognition on the market, win over competitors and return to at least pre-war positions in terms of sales volumes.

Investments in setting up such an option on 10+ product items will be in the range of $3-5 thousand.        

Augmented and virtual reality in the segment of food products

Representatives of many segments of Ukrainian food producers are fighting for the international consumer. In this case, we are talking about producers of final consumption goods of food and beverages, and not sellers of raw materials.

It is very difficult for a Ukrainian brand to "break into" international retail markets with BTL promotions, merchandisers and other promotional activities to popularize the brand. In this case, non-standard immersive solutions from the field of 3D marketing are needed.

The goods of the Ukrainian brand on the shelves of international stores should speak for themselves with the help of augmented reality technology. The consumer scans the QR code, points to the label and it turns into interactive 3D content. It can be in the form of a video message from the business owner directly to the consumer, a 3D character (especially if it is a children's audience), in the form of a 3D quest, a 3D consultant who provides instructions on how to use this product, etc.

The most important thing is that through this immersion, the consumer increases the time of contact with the product by an average of 25-30% and, accordingly, the recognition and loyalty to the brand increases. This tool will help to effectively distinguish the Ukrainian product from international competitors and attract the attention of the consumer so that he pays attention to the brand and makes a purchase for the first time.

Investments in setting up such an option per SKU will be in the range of $5-10 thousand.        

Virtual reality for the manufacturing segment

Another significant pain point of Ukrainian business, which has production facilities on the territory of Ukraine and works with foreign clients, is that the latter are "afraid" to cooperate with us because of military actions. This happens even when the enterprise is in a completely safe territory and meets the obligations assumed.

Partners have to see with their own eyes that the enterprise is safe, employees are at work, products are being manufactured, despite the war. Of course, today not all international partners and clients are ready to visit Ukraine to see for themselves.

That is why the Ukrainian business should, with the help of immersive virtual reality technology, transfer its potential client or partner to the territory of the enterprise and give the opportunity to be present there, in order to feel confident that everything is functioning harmoniously.

For this, a 360 video for virtual reality is shot directly at the enterprise, integrated into a VR headset and sent to international partners.

The investment in setting up such an option will be in the range of $15-20.        

Immersive technologies help establish communication between the brand and the consumer. This is now a very urgent problem for Ukrainian business in the international arena and in the local market.

It is important for an international consumer to "make friends" with Ukrainian brands, and for a local consumer, it is important for the brand to care and support him in these difficult times. Our company has experience in implementing more than 250 projects in this area and today helps Ukrainian businesses to integrate immersive technologies into their marketing and production strategies.

__________________________________________________________

This is the fourth article in my blog series about 3D marketing.?

I will be glad to discuss! ??

THIS ARTICLE ON UKR ??????