What is an example of XR reality?

Do you remember seeing people exploring their neighborhoods, smartphone in hand, chasing virtual creatures in Pokémon Go? Or maybe you’ve experienced the magic of a VR headset that plunged you into a whole new universe? If these adventures ring a bell, you’ve already tasted some of the excitement of extended reality. But what is extended reality, exactly?

Extended reality (XR) is an emerging technology poised to transform many industries, including healthcare, real estate, and retail. XR refers to immersive digital experiences that blend the physical and virtual worlds. This umbrella term encompasses augmented reality (AR), virtual reality (VR), and mixed reality (MR).

Yet XR is so much more than just video games and fun walk-throughs. From virtual try-ons to interactive in-store displays, these technologies are creating more personalized, memorable shopping journeys. For retailers, XR enables new digital avenues for engaging and converting customers, and more efficient workflows.

This article will explore extended reality, its retail applications, and real-world examples. We’ll also review some implementation challenges and the future outlook for this technology. Join us as we examine the promise of XR for modern retailers seeking to meet rising customer expectations.

Extended reality explained

Extended reality integrates real and virtual environments, creating immersive digital experiences. In retail, XR allows customers to try on clothes, view 3D product models, and explore interactive in-store displays virtually. These technologies are transforming traditional brick-and-mortar and e-commerce models.

If you’ve heard terms like AR, VR, and MR being thrown around but aren’t exactly sure what they mean—don’t worry! These seemingly complex terms are relatively simple to understand and come together to form XR.

Virtual reality (VR)

When it comes to VR, most people report the feeling of being transported to an entirely different place. It transforms your surroundings into a 3D environment where you can explore freely.

Virtual reality fully immerses users in a computer-generated, three-dimensional environment and shuts out the physical world using head-mounted displays like Meta’s Oculus Quest, and hand controllers allow natural interactions with the virtual environment. VR is especially popular for gaming, simulations, and training.

One of the widespread use cases for VR so far is the video game industry. Niches like VR gaming already employ this technology to create more captivating consumer experiences. VR technology provides an interactive and visually compelling environment for users to engage with.

However, the gaming industry is one of many seeing the benefits. In retail, VR allows potential buyers to explore products and experience services within simulated settings from any corner of the world. Imagine having customers “walk around” your grocery store to try a new layout without leaving their homes!

Augmented reality (AR)

Let’s return to the Pokémon Go phenomenon example. Within a week of its release, public spaces were flooded with people trying to “catch” virtual creatures overlaid on the real-world through smartphone screens. This craze gave everybody a firsthand experience with AR, and continues to be popular today. It demonstrates its ability to seamlessly blend digital objects with a real-world environment.

Augmented reality overlays digital information and objects onto the physical world. The exciting aspect of AR is that it can work using nothing but a mobile device with a camera.

From a retail perspective, AR opens new doors for creating immersive customer experiences without requiring individuals to be physically present within store premises. It’s perfect when you want to see how that coffee table would look in your living room before making an actual purchase. Or when you’re curious whether a particular shade of lipstick suits your skin tone without trying it on. Many retailers including IKEA, Sephora, Target and others have implemented AR apps and technology to help sell their products.

Mixed reality (MR)

Mixed reality seamlessly integrates real and virtual worlds, where physical and digital objects can interact. MR headsets like Microsoft’s HoloLens allow users to place 3D holographic objects in physical spaces, where hand and eye-tracking create natural controls.

MR retail applications include overlaying digital product information onto physical store shelves or packages. Customers can interact with virtual products and environments. MR transforms store layouts, displays, and navigation into interactive experiences, and retailers gain flexible promotions, merchandising, and user data.

If you think that MR sounds quite similar to AR, you’re not wrong. The main difference is that MR incorporates virtual objects that can interact with the real world. In contrast, AR typically only overlays digital information onto physical objects.

Core technologies powering XR

At the core of these immersive experiences are technologies such as headsets, sensors, and cameras. They work in unison to create seamless digital worlds brought to life by powerful software, cloud computing, and artificial intelligence.

Head-mounted displays like the Microsoft HoloLens or Oculus VR headset can deliver visual and auditory content. These wearables have sensors to detect user movements and gestures while the integrated software processes this data into real-time responses within the digital world.

Furthermore, artificial intelligence elevates XR by adding an extra layer of realism through predictive interactions. For instance, it could allow you to ‘have a conversation’ with virtual characters or avatars!

Cloud computing is an essential backbone also, providing enhanced connectivity to manage and support the vast amounts of data these experiences generate. Other technologies like spatial mapping can scan physical environments using sensors to create a digital map. It allows virtual objects to interact with real-life spaces.

Together, these core pieces create the seamless visuals, natural controls, and realistic physics that make extended reality experiences truly immersive.

5 Real-world Extended Reality Examples in Retail

Recognizing the potential implications of extended reality technology is one thing. Having the vision to translate it into practical applications is what separates leaders from the crowd. To understand these applications better, let’s examine five real-world examples where extended reality has proven its worth.

Redefining the virtual try-on experience

Virtual try-on apps are a leading retail use case today. Using augmented reality, customers can digitally “try on” makeup, jewelry, eyewear, clothing, and even furniture before buying. For example, Sephora’s Virtual Artist app lets shoppers test different lipstick shades using their smartphone cameras. As they move, the lipstick overlay convincingly stays on their lips. This reduces returns and gives the confidence to buy cosmetics online without testing physically.

At InContext, we created AR-capable 3D model assets aiding in the launch of an AR application for a retail warehouse club.  We captured over 300 large items across numerous supplier locations in just 5 weeks. This included producing and delivering studio-quality photography and physical measurements to facilitate the applications.

For retailers, these capabilities reduce the risk of product returns and customer dissatisfaction. By allowing customers to try on products, they can ensure the product suits their preferences before purchasing. This enhances the overall shopping experience and helps drive online sales. Customers are more confident in their purchases. XR can also help in inventory management, as it may reduce the need for physical samples in stores.

Looking ahead, virtual try-ons are becoming even more realistic with 3D avatar modeling. Companies like Zyler enable customers to upload a photo and create a personalized 3D model that matches their exact body shape, skin tone, and hairstyle. Shoppers can see clothing and accessory items realistically overlayed onto their avatars from all angles. This level of personalization and realism will further augment the virtual try-on experience.

Exciting augmented navigation

Extended Reality (XR) has the potential to revolutionize augmented navigation by providing users with immersive and intuitive ways to find their way in the physical world. One compelling example of this is Yelp’s implementation of XR technology to enhance the dining experience. With XR, users can simply hold up their smart glasses or use a smartphone with AR capabilities. Yelp can overlay real-time information about nearby restaurants and the locations of their preferred dishes.

Imagine walking down a busy street and seeing digital markers hovering above restaurants, indicating their names and ratings and highlighting the specific dishes that have received rave reviews. This not only simplifies finding the perfect meal but also adds an engaging layer of exploration to urban environments. XR technology’s ability to seamlessly blend the digital and physical worlds can transform how we navigate and interact with our surroundings, making everyday experiences like dining out more informative and enjoyable.

Interactive product visualization

Product visualization has experienced a massive leap forward thanks to extended reality. An item, its uses, components – everything can now be modeled in 3D, customizable per customer preferences. It’s as if the product comes alive right before your eyes, telling you its story and enticing you to make it yours.

Moreover, augmented packaging and labels provide immersive storytelling that adds another layer to product understanding. Like Nike, where customers can design their own unique shoes and watch them transform before their eyes. This breakthrough increases the likelihood of customer satisfaction and decreases the chances of product returns.

At InContext Solutions, we share this vision of transforming interactions between customers and products. Reach out to us for innovative XR solutions with 3D products.

Virtual store tours

XR also allows businesses to create incredible virtual replicas of retail spaces. These give customers multi-sensory learning experiences at their fingertips. Full virtual reality enables remote customers to digitally walk through highly realistic store environments from home. Shoppers can browse merchandise, view seasonal displays and promotions, and plan shopping lists before or instead of visiting in person.

One day, we might even experience the reality of the grocery store, fully remotely.  But for now, VR store previews provide remote customers an immersive view that mirrors an in-store visit.

Retailers can also gain valuable data on shopper attention, interests, and recall before they even enter the physical store thanks to a 90% or higher correlation rate. Insights from virtual browsing patterns can better optimize actual store layouts and merchandise planning. At InContext, our XR experts will collaborate with you to develop the best possible virtual shopper research studies  for your business so you can save time and enable deeper insights into how shoppers behave at the shelf, and why.

Mixed reality marketing campaigns

Finally, mixed reality opens new creative possibilities for marketing campaigns. For example, a home goods retailer could design a mixed-reality scavenger egg hunt in stores. Overlaid onto the real environment, customers hunt for virtual animated eggs containing prizes and rewards. Shoppers could even take selfies capturing the eggs using smartphones.

An example of this is the McDonald’s McMission app, launched in Germany years back. This AR game lets users pick up virtual trash in their environment. They got rewards and learned about recycling and being eco-friendly as they played. This clever move not only helped educate people about the importance of sustainability but also boosted McDonald’s image as an environmentally conscious brand.

Mixed reality marketing events like this drive foot traffic and deliver fun, shareable brand experiences beyond shopping. The interactive digital overlays make for memorable and engaging campaigns that consumers will likely remember. This showcases MR’s power for imaginative promotions.

Implementing XR: Challenges and Best Practices

Embracing new technologies like XR has its share of challenges. It’s essential to be realistic about the fact that there can be high initial hardware costs, technical complexities, and maintenance considerations. However, the long-term, sustainable return on investment (ROI) easily makes up for these.

When it comes to XR, it becomes crucial to ensure that investments in such bold technologies don’t come off as fleeting gimmicks. Instead, the focus should remain on meaningful and long-lasting business transformation.

Since retail operates within a rapidly changing environment influenced by market and technological fluctuations, any investment ought to be future-proofed. It should be scalable, adaptive, and robust enough to accommodate future advancements in AR/VR platforms or devices.

Above all, adopting XR should work with existing retail tech stacks and operations. It shouldn’t operate under isolation but rather provide enhanced experiences that complement conventional practices. This is why working with experienced, reputable consultants is vital.

The key benefits of XR for retailers

Though adoption is still early, extended reality delivers tangible benefits when thoughtfully implemented, including:

• • More engaging, interactive shopping experiences that resonate emotionally with customers.
  • Higher conversion rates and sales lifts from virtual try-ons and interactive previews.
  • Lower return rates due to customers better assessing product fit and visualizing items in context.
  • More efficient inventory planning using simulations of customer behavior.
  • Enhanced brand loyalty and advocacy by delivering memorable VR experiences.
  • Valuable customer data and insights on product interests that inform merchandising.
  • Increased accessibility for customers with disabilities or mobility challenges.

As technology matures, XR will become integral to delivering personalized, frictionless shopping journeys that bridge digital and physical channels.

The future of XR in retail

XR still has significant room for advancement. Over the horizon are emerging trends that could further amplify XR’s impact. For instance, haptic technology is being developed to provide touch feedback in digital worlds. Coupled with reduced latencies thanks to 5G connectivity, this could lay the groundwork for exceptionally believable immersive experiences.

Photorealistic avatars are inching closer to reality, too. Soon, you might see yourself mirrored within XR environments accurately, down to every detail! As if these weren’t revolutionary enough, we’re also witnessing a shift from solo-user experiences towards shared XR experiences. These are when multiple users participate simultaneously, which can have fantastic effects on social shopping.

XR will likely redefine omni-channel retail, eCommerce, marketing, and brand experiences in the coming years. With smartphones now having built-in AR capability and VR gear becoming more affordable and refined over time, we might be close to everyone having access and expecting this high-tech shopping experience!

Customers can access virtual stores, concerts, and sporting events from home as easily as websites today. The future high-tech retail experience will blend the best of physical and digital. While uncertainty exists, the possibilities are compelling. Retailers should begin exploring XR’s strategic potential now.

And who knows what the Metaverse holds for us on the retail frontier.  Perhaps virtual shopping malls where you can interact with other shoppers’ avatars or AI-assisted personal shoppers helping select perfect outfits? With extended reality in its arsenal, the store of tomorrow looks incredibly exciting.

Partner with InContext today

Extended reality represents the next major innovation for progressive retailers looking to engage customers in more memorable and personalized ways. By blending physical and digital environments, XR enables immersive new retail and eCommerce experiences not possible otherwise.

However, it’s important to ensure these developments are executed properly. Missteps or shortcuts could result in gimmicks that fade away as quickly as they emerge. For XR to weave its magic and thrive in the retail world, the focus needs to be placed on delivering tangible value for customers and retailers alike.
At InContext Solutions, we can help you navigate this exciting landscape with our proven expertise in delivering powerful AR, VR, and XR solutions for businesses. Contact us today, and let’s explore how we can bring your retail experience into the future with extended reality technology.

 

Extended Reality (XR), the umbrella term for Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) is used to define the concept of “extending” or transforming our reality with the use of technology to create immersive environments, experiences, and interactions.

XR tech takes the human-machine interface and modifies it, either by immersing you in the virtual environment (VR), adding to, or augmenting, the user’s surroundings (AR), or both of those (MR). While extended reality use cases have been humming along, the pandemic served as the catalyst for an explosion of XR use cases during 2020 and 2021, accelerating the rollout of virtual experiences for work and collaboration.

From retail to healthcare to education and training to the food sector, extended reality applications are vast and increasing, with experts expecting this technology to radically alter how we work, live, and play, and market size to rocket to a staggering $300 billion by 2024.

Understanding Extended Reality Better

“A mind that is stretched by a new experience can never go back to its old dimensions.” — Oliver Holmes, Jr.

To better understand Extended Reality (XR), let’s briefly run through its three main components: Virtual, Augmented, and Mixed Reality.

Virtual Reality

Virtual Reality (VR) applications use headsets to fully immerse users in a computer-simulated reality. These headsets generate realistic sounds and images, engaging all five senses to create an interactive virtual world.

Augmented Reality

Rather than immersing users, Augmented Reality (AR) relies on a device – usually the camera in your phone or tablet – to overlay digital graphics and sounds into a real-world environment. For instance, you could be at a live sports event and see a digital statistics overlay hovering over the players, or videos of replays or interviews.

Mixed Reality

Mixed Reality (MR) lies somewhere in between VR and AR. It blends real and virtual worlds to create complex environments where physical and digital elements can interact in real-time. You see the surroundings as in AR, yet the headset produces 3D imagery with interactivity and depth as in VR. Like AR, it overlays virtual content over a real-world environment; and like VR, this content is interactive, and users can manipulate the digital objects in their physical space.

Even in an otherwise highly volatile economy, XR appears to be thriving. From digital training simulations to remote experience technologies that link spaces and people across the globe – XR is driving change in every sector, across all markets and industries.

10 Applications of Extended Reality

Imagination is infinite, and by creatively combining XR technology with our imagination, new frontiers will open up. That said, several XR applications already have huge social relevance and impact.

1. Entertainment and Gaming

XR for entertainment and games may sound light, but this currently constitutes the number one market segment, with the XR gaming market on track to reach $18 billion by 2023.

Gamers can intimately feel what their selected scenes would resemble in the flesh, whether crossing into another era, place or exploring fantastic futuristic worlds. Consumers can virtually experience live music and sporting events from the comfort of their VR headsets.

More and more gaming developers are launching their own virtual reality headsets. And given the hyper-competitive nature of the gaming industry, it’s highly likely that VR gaming will continue to develop in an extraordinary innovative way.

2. Healthcare

Experts see multiple areas where VR technology can contribute to healthcare, including mental well-being, physiotherapy, pharmaceutical development, and education for professionals and patients. The technology also assists in collaboration, especially among multiple facilities. During the pandemic, doctors used XR extensively to offer remote care.

Medical imaging technologies like magnetic resonance imaging (MRI) and CT scans now make extensive use of extended reality. It gives staff full 3D representations of human bodies rather than traditional 2D imaging. This improves diagnostic accuracy, as medical personnel now have a more accurate rendering of the relevant structures.

Surgical training marks one of the stand-out applications of XR. Immersive models allow doctors to practice skills without risking lives – to learn general surgical techniques or even to develop procedures for complex operations. During live operations or patient care, medical staff can use AR to make better decisions and offer more insightful recommendations to their patients. With medical VR treatment, people can experience a controlled environment where they face and overcome their fears safely.

3. Engineering and Manufacturing

A skilled workforce has become necessary to keep pace in the super-charged business world, with training a necessary yet expensive endeavor. XR tools can save money, time, and prevent injuries.

Computer-aided design (CAD) makes an ideal use case as designers and their clients can immerse themselves in life-size plans while drafting. This allows for superior exploration of design space.

Engineering and manufacturing can sometimes involve dangerous functions. The use of augmented reality enables workers to conduct these actions from a safe distance. For instance, an employee can direct a robot to perform some tasks involving hazardous chemicals that pose a risk.

New factory employees can learn how to use risky equipment via simulations and from anywhere. A job simulator can even include accurate deadlines, distractions, and other pressing demands.

AR can also assist in other processes like assembly, quality control, and maintenance. Workers receive visual and voice instructions as well as seeing data on a smartphone, headset, or other hardware. It can include precise technical data such as tolerances or coatings. From Boeing to Porsche to Lockheed Martin, AR is being leveraged to drive productivity along key stages of the production process.

4. Food

The food industry is vast and diverse. Whether that be streaming training content, mimicking food production processes virtually, or simulating real-life scenarios — XR offers a new way of looking and doing things. Some restaurants, for example, now offer placemats that can transform into gaming platforms and recipe books.

Proper hygiene in food facilities is one of the most important aspects of food production. Manual inspection routines are susceptible to human error or lack of oversight. With mixed reality devices such as HoloLens, it is possible to add a digital layer to any form of maintenance or service like a routine hygiene inspection. The digital layer can highlight critical areas that can be overlooked with manual processes, ensuring all important areas are covered.

You can even add a no-oversights feature that means a worker cannot move on to the next step until all necessary steps have been completed. Additionally, HoloLens can capture content and store it in a database, meaning improved traceability of hygiene inspections, a key focus area for food operators.

The retention of skills and knowledge learned via VR is very high, meaning it is more likely to be applied in the workplace, ultimately leading to increased productivity. Even complex techniques can be broken down into their most basic components to make certain that even the newest employee can grasp and deliver consistent, high-quality output.

Using VR, any task in a production facility can be copied virtually and can be reviewed at a pace most comfortable to the employee. In addition, VR-learning doesn’t require help from other colleagues, meaning new employees can be trained without the need for other employees to take time to teach. With visual guides, a worker should be able to pick up the next steps. Further, the instructions can easily be read in different languages.

5. eCommerce and Retail

AR contributes to both online and offline shopping. In stores, customers can quickly and easily learn all about products on display. You can, for instance, instantly find reviews and recommendations just by pointing your camera at an AR-enabled item. Retailers can also offer discounts through this medium while uncovering shopping patterns in the data.

For e-commerce, AR brings the shopper closer to an in-person experience – especially during the pandemic. People generally want to interact with a product before buying, and this technology allows them to do so.

Product returns can cost as much as $550 billion per year. People often buy a product based on a stock photo, but when they receive it, they realize it’s not what they imagined. AR eliminates this frustration. By allowing customers to experience the product in an augmented world, they sense first hand whether they will like it or not. Retail giant Macy’s “try before you buy” AR product visualization helped the company reduce return rates to less than 2%. Famous retailers from Saks to Saatchi have also rolled out immersive shopping experiences.

Studies show that 47% of consumers acknowledged that immersive technologies make them “feel more connected with products” while shopping online. Rather than forcing a consumer to imagine how a product will look, AR allows the user to experience the product firsthand, in a digital environment.

6. Education

The National Education Association has found that while the learning retention is only 5% for lectures and 10% for reading, VR is among the top 2 with learning retention of 75%. With immersive technology, learning can be made much more engaging than simply reading a piece of text or watching a video.

Augmented reality gives students hands-on, real-world experience without the need for a classroom. It enables people to see what it’s like in outer space or to practice surgery on virtual patients. XR delivers unique learning experiences and is expected to have a growing influence on education at all levels from elementary to tertiary, to professional learning.

XR enables virtual field trips, including to locations that you can’t reach in person. You can also explore complex scientific topics in extreme detail, like manipulating a 3D model of a molecule. When it comes to post-secondary, XR enables remote self-paced learning. Students can have multisensory engagement with any topic from astronomy to zoology. Richer interconnections make the material more memorable. Gamification, in which lessons are made entertaining, can further enhance learning outcomes.

7. Real Estate

Real estate agents can give prospective buyers a tour of properties as if viewing them in person, even if they are on opposite sides of the planet. You can produce advertisements, sales presentations, and detailed open houses for use with smartphones or headsets. Real estate agents already exploit XR’s core functions with current tools already built into some web browsers.

8. Workplace

Hybrid work, remote employees, 4-day work week; the pandemic has triggered a series of new workplace arrangements. Executives see extended reality as an effective method to reconnect employees. It brings new opportunities for on-the-job training too, helping employees learn as they go, getting hands-on experience in a safe and controlled environment, enabling them to be more efficient.

Logistics giant DHL rolled out its Google Glass-based Vision Picking Program in its warehouses in nine countries, reporting productivity savings of 15% through more accurate and efficient fulfillment. Lloyds Bank is investing in VR technology to train their staff in soft skills, helping employees learn to develop resilience and cope with stress.

9. Defense

“This is cutting-edge technology. It’s going to transform the way we train soldiers and the way soldiers operate in combat. We’re excited about it,” is how Gen. James McConville, the US Army’s chief of staff, describes XR.

Since the inception of XR technologies, the US Military has invested billions of dollars in the technology. The Army and the Marine Corps have invested in a new battlefield head-up display called the Integrated Visual Augmentation System (IVAS), which combines synthetic training environments with real-world data to boost infantry readiness and effectiveness. The Navy and Air Force have been using similar XR technologies to train their fighter pilots.

The US Defense Department readily extols the boundless promise that XR advances hold for dramatically improved training, situational awareness, logistics support, combat readiness, and even medical training and procedures. XR can deliver training far faster and at less cost than traditional training in many cases. By employing virtual reality, artificial intelligence (AI), and biometric tracking, the US Air Force has reduced pilot training from 12 months to four.

By superimposing virtual data over a view of the real world, military personnel can use XR technologies to navigate more easily across any terrain in the world; know the location of friendly troops or reported threats; train and rehearse for anticipated battle scenarios, and even overlay virtual enemies and obstacles as needed for better preparation.

10. Travel and Tourism

The unprecedented and disastrous pandemic impacted nearly every sector of the economy, with the travel and tourism industry hit particularly hard. The United Nations Conference on Trade and Development (UNCTAD) estimates that the sharp decline in international tourism during the pandemic has slashed more than $4 trillion off the global GDP.

Because so many people still aren’t willing to travel, smart operators are using extended reality to offer stay-at-home travel experiences. This benefits both consumers and the tourism industry. Extended reality tourism gives consumers the opportunity to travel the world safely and at a fraction of the cost. This technology also creates a new revenue stream for companies struggling to stay afloat.

In Jordan, for example, the government launched the Petra Xplore App, which uses virtual reality technology to teleport visitors to the UNESCO World Heritage Site. Visitors can walk through and explore points of interest. As users explore the city, commentary helps them understand the historical significance.

Industry experts believe, even post-pandemic, that extended reality tourism will continue to appeal to tourists who are looking for an inexpensive way to travel the world.

Leverage The Use of Extended Reality Now

Extended reality advances the potential of AR, VR, and MR and merges our real and virtual worlds to create new environments and visualizations where physical and digital objects co-exist, interact, and communicate. Instead of removing users completely from the real world, or simply layering flat content on top of their immediate view, MR adds intelligence, even personality, to digital content relative to the world around them.

As part of the technological evolution of how we engage with the digital world, in both our personal and work lives, we are smashing through the barriers that interfere with our ability to make smart decisions quickly, absorb, retain and process critical information, visualize possible scenarios before acting, or share knowledge and tasks. The XR trend is ushering in a new world of simulated experiences grounded in the ways business gets done and how customers actually use products.

If you plan to effectively leverage the immense power of extended reality, choosing the right partner is critically important. You need to work with an experienced agency that not only has a stellar track record but one that has a firm grasp of the technical know-how of these immersive technologies, as well as the capability to creatively bring your vision to life and solve real-world problems.

Rock Paper Reality (RPR) has been at the forefront of AR development for over 12 years. Having worked with clients including Microsoft, Netflix, and Lenovo, the experts at RPR will work with you every step of the way to ensure that your brand stands above the competition.

Contact us today for a free demo and discover how our clients have achieved strong ROI with our proven solutions. Watch the RPR showcase reel for some more AR experiences in action.