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This is a presentation I gave at the Online Retailer Conference in Sydney, Australia on July 8th, 2010. The presentation covers the rise of e-commerce, how the 'experience' hasn't changed, and how augmented reality will change how we shop online.
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Changing The Future: Emerging Technologies That Will Blow
Customers Away
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Snapshot: We’re an interactive marketing agency with a passion for emerging media and technologies
Services: Interactive Video, Social Media Marketing, Mobile Marketing, Website/Application Development
AR Products: Webcam Social Shopper / Fashionista, Cannonballz, ZugSTAR
Founded: 2001
Location: Los Angeles / New York
Web: www.zugara.com
Blog: www.weareorganizedchaos.com
Facebook: www.facebook.com/zugara
YouTube: www.youtube.com/zugara
Twitter: www.twitter.com/zugara
PROFILE
HELLO… WE’RE ZUGARA
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State of E-Commerce
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Online Retail Sales Continue to Rise…
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Web-Influenced Retail Sales Rise As Well…
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Peers Continue To Influence Purchase Decisions
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Peers Continue To Influence Purchase Decisions
83% of online shoppers said they are interested in sharing information about their purchases with people they know
(Manage Smarter, September 2009)
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Peers Continue To Influence Purchase Decisions
74% are influenced by the opinions of others in their decision to buy the product in the first place.
(Manage Smarter, September 2009)
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But What’s Missing?
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Shopping Offline Is An Emotional and Social Experience
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Online…Not So Much
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The “consumer experience” has made very little progress in the last 15 years
Amazon1990’s
Amazon2010
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Catalyst To Drive Purchase
45% of U.S. online shoppers abandoned shopping carts multiple times over a span of three weeks. (Paypal & ComScore)
And Continues To Face Obstacles Online
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Conversion rates are low, with the “gold standard” being between 2% and 3%
We Can’t All Have Apple’s Loyalty
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The average return rate for online clothing retailers is about 20% but goes as high as 50% for some. (Forrester Research)
Return To Sender…
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What Are Brands Doing To Evolve The E-Commerce Experience?
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E-Commerce Innovations – Social Media
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E-Commerce Innovations – Interactive Video
<- Zappos Interactive Product Videos
<- Sales increased from 6% to 30% when product had video associated with it
Samsung Live Video Customer & -> Product Support
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YouTube & Video Chat Generation
• 36% of Skype-Skype calls included Video
• Chatroulette had 960,000 unique U.S. visitors in February
Sources: GigaOM – Skype By The Numbers. It’s Really BigComscore – Chatroullette Takes The College Crowd By Storm
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Worldwide Projected Webcam Growth
Markets for webcams at $1.8 billion in 2008 are anticipated to reach $3.2 billion by 2015, growing in response to decreases in unit costs and increases.
(Wintergreen Research - Worldwide WebCam Market Shares, Strategies, and Forecasts, 2009-2015)
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What Does All This Add Up To?
A New Way For The Consumer To Interact With Products And Brands Online
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E-Commerce & The Augmented“Product” Experience
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SHOW OF HANDS:
How many of you know what
Augmented Reality is?
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My reaction to AR for the 1st time…
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It’s when the real world is
“augmented” by computer
data.
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AR is not Virtual Reality
or Second Life…
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AR is the future of how we will interact with digital information
VIEW INTERACT
ACCESS
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Usually shown as reality in popular movies today…
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AR looks cool, but is anybody actually using it?
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Major advertising and marketing channels have started using AR
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Online, all the consumer needs:
Decent Computer
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Online, all the consumer needs:
Decent Computer Regular Web Cam
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Often times a marker (or glyph):
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And sometimes just an image:
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Some AR executions require:
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This is a barrier for the consumer
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So beyond all the hype, what’s practical for AR in the here and
now?
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• Online AR currently most popular • Largest Reach / Average Spec• Adoption of Video Chat / Webcam Fueling Growth• Flash-based AR
• Kiosk-based AR growing• Limited Scale / Reach but Least Amount of Barriers• Highest Spec Possibilities
• Mobile AR = not yet ready for primetime • Limited Processing Power• Will be Focal Point of AR in the future
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Augmented Reality Shopping – IKEA
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Augmented Reality Shopping – IKEA
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Augmented Reality Shopping – Ray-Ban
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Augmented Reality Shopping – Ray-Ban
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Augmented Reality Shopping - Tissot
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Augmented Reality Shopping - Tissot
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Augmented Reality Shopping - Lego
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Augmented Reality Shopping - Lego
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How Do We Use AR To
Enhance The E-Commerce
Experience For The
Consumer?
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Focus On Utility
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Integrate Social Media
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No Software Downloads
Online
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“Augmented Reality is a solution looking for a problem…”
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Problem: How Do We Bridge The Gap Between Offline and Online Shopping
Offline ShoppingSocial but time consuming
Online ShoppingConvenient but not social
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And Give Consumers That “At The Rack” Experience, Online?
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Solution: Augmented Reality
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Fashionista – Integration of AR + Real-Time Personalization
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Streaming Augmented Reality – Real-Time, Interactive Video Chat for Online Shopping
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The Future?
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Future Of Shopping Will Be Digital
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“If I had asked people what they wanted, they would have said
faster horses.”
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“If I had asked people what they wanted, they would have said
faster horses.”- Henry Ford
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Market Data• In 2009, 154 million people in the U.S. bought something online, or 67% of the online population (4%
more than in 2008). (Forrester Research)• 80% of Gen X and 71% of Gen Y internet users buy products online. (Pew Internet & American Life
Project)• Amount people spent on clothing online: $13.6 Bil. (US Census)
• Amount people spent on clothing in store: $7.0 Bil. • 83% of online shoppers said they are interested in sharing information about their purchases with people
they know, while 74% are influenced by the opinions of others in their decision to buy the product in the first place. (Manage Smarter)
• Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions. (Jupiter Research)
• B2B interactive marketing spending will climb to nearly $4.8 billion in 2014. (Forrester Research)
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The Future Of AR
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True Markerless Via An Average Webcam
More Immersive Experience Online / Kiosk
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Mobile Will Overcome:•Hardware Issues
• GPS Accuracy• Compass Accuracy• No Front Facing Camera
•Processing Power Issues•Issues Accessing API’s
To Become:•Central touchpoint for AR
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Connected TVs Will Be A Powerful Medium
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“The best way to predict the future is to invent it.”
- Alan Kay
