E-commerce: Entering the world of augmented reality

Abstract

‘The Neuromancer’ and ‘The Matrix’ series were sci-fi movies that took the potential of technology to a whole new level, and their perception of Augmented Reality (AR) was one of the main components that made these sci-fi movies stand-out in their times. Today, augmented reality is no more just science fiction. Augmented reality has gained so much popularity that the top tech firms are investing heavily in it. Microsoft’s HoloLens, Facebook’s Oculus Rift and Google Glass are a few examples. Amazon is also rumoured to be working on an AR technology that works without headgear. On the other hand, smartphones have already been employed as gateways to the AR world. E-commerce does not lag behind in jumping into new technology, and AR is no exception. E-commerce brands have already started investing in building apps with built-in AR support. For the customers, it is another exciting and more efficient way of online shopping. The customer experience can be enhanced by pulling up 360 degree experiences of the product offerings and its variants. The study will first introduce the concept of Augmented Reality by defining and highlighting the scope of the technology, and its applications in the real world. The next section will cover some of the differences between the domains of Augmented Reality and Virtual Reality. With this basic understanding, the different types of Augmented Reality will be explored. This will help form the basis for analysing the various applications of AR in the E-commerce world. Our study will extensively cover the implications of AR on the user value dimensions ranging from utility value to emotional value. Identifying the relevant user value dimensions will help map the product categories to which AR would add maximum user value and hence would help E-commerce players to focus on such product categories going forward. Next, the study will focus on the competitive landscape in the E-commerce industry and how companies are trying to differentiate themselves. The application of AR presents an opportunity for E-commerce players to offer superior customer experience and some examples of how companies have started differentiating themselves will be covered. Lastly, the concluding section will summarize the scope of application of AR and its underlying challenges in E-commerce under the lens of product/service development.