Presentation elaborates the concept of Virtual stores along with its future scope of growth

1. Virtual Stores
The Future of Retail
By
Bharat Bharadwaj

2. Contents
 Virtual Store Concept
 How different is it from Online Shopping and Regular Physical Shopping?
 How does this really work?
 How does a Retailer benefit from a Virtual Store?
 Some of the Retail Giants who have successfully implemented its Virtual Stores
 Virtual Stores in India
 Are Virtual Stores the future?

3. 3
Virtual Store Concept
Products are displayed on large touch-screens which can be viewed in much the same
way as they are in shops. But the items’ barcodes are scanned via your mobile phone
rather than by a cashier, and added to an online basket which is then delivered to your
home.
A Retail Store A Virtual Store

4. 4
How different is it from Online Shopping and Regular Physical Shopping?
 The virtual stores are set up in public spaces, most often in subways and bus stops
with high foot traffic and frequented daily by tech-savvy commuters.
 The posters in the virtual stores are designed to resemble the actual aisles and
shelves of a regular store giving user the same look and feel of actual store.
Shoppers benefit from Virtual Stores
No more of pushing your huge carts
and waiting in the counters
User can touch, feel and compare products
from the same shelves as in Physical stores
which is missing in Online shopping
Commuters, travelers can shop during commute and have items
delivered to home/Hotels without having to worry about picking
stuffs on there way back home

5. 5
How does this really work?
 The shopper needs to have a relevant mobile app to scan the QR code on the display, set time
and date of delivery and place order.
Download the app, place your mobile
camera on the QR code
Scan the
QR Code
Select one of the option

6. 6
How does a Retailer benefit from a Virtual Store?
 Considerable reduction in Overhead costs
such as floor area, the amount of products
stacked on the shelves and the heavy
inventory maintained for every store
 Avoiding High Set up costs for store extensions
to enter new markets and untapped regions
which includes store design, store setup,
inventory costs, carrying costs and real estate
costs.
 Production costs are low because displays are
created electronically. Once the hardware and
software are in place, the cost of a test is
largely a function of the number of
respondents, who generally are given a small
incentive to participate
 The simulation has a high degree of flexibility.
It can be used to test entirely new marketing
concepts or to fine-tune existing programs. The
simulation also makes it possible to eliminate
much of the noise that exists in field
experiments.

7. 7
Some of the Retail Giants who have successfully implemented its Virtual Stores
Walmart Canada and
Mattel have launched a
virtual pop-up toy store in
Toronto to make it easy
and convenient for
shoppers to buy gifts
during an often rushed
holiday season.
Tesco launched the first
version of the offer in the
subway of South Korea’s
capital city Seoul, and is
now installing the
interactive displays at bus
shelters in cities around the
Asian nation in order to
further capture sales from
busy commuters.
Peapod’s virtual store
technology features
physical or digital
billboards of larger-than-
life grocery aisles
positioned in community
recreation centers, on
coffee sleeves at local
cafes, and on a high-tech
Peapod truck
M&S e-boutique in Holland
is a “virtual clothes rail” has
been installed consisting of
two tall, upright digital
screens. Shoppers can select
from the screen and put
their chosen garments on
the digital clothes rail and
then turn the garments
round, look at their shape
and even move them along
the rail, if they wish.

8. 8
Tesco witnessed a big success in Korea with its launch of Virtual store in bid to become country’s
top retailer
 Tesco had to expand in Korea but building
physical stores was not the solution
 Recognized pulse of hard working Koreans
who would welcome a concept which can
save their time
 Virtual Store became instant success with
online sales increasing up to 130 % tripling
its online sales in just 3 months
 Customer base increased by 76 %
 The Android app was downloaded by more
than a half-million users.
 The virtual store concept to be expanded to
20 new locations across the country.

9. 9
Virtual Store using QR technology has made entry into Indian market as well with Yebhi.com and
Homeshop 18 setting up virtual stores
HomeShop18 and Delhi International Airport introduced
a “Virtual Shopping Wall’ at the Delhi Domestic Terminal
T3. The virtual mall is named “Scan N Shop”. The wall
offers premium merchandise to consumers
 Yebhi.com has launched thirty virtual stores inside
cafés across Delhi and Bangalore, using both NFC
tags and QR codes.
 Smart posters showing the online portal’s
merchandise have been placed on the walls ofCafé
Coffee Day stores and advertise products from
fashion accessories to mobile phones that are
available to buy from the company’s website.

10.  Online shoppers have grown to 35 million from 8
million in 2012
 Smartphone users have climbed four-fold to over
110 million in the same period.
 The target segment would be very niche and
hence the retailers have to be very careful while
strategizing virtual store concept in India
 The success of virtual retail would also hinge on a
strong back-end for order fulfilment and a supply
chain enabling timely delivery
10
India has a huge market for Virtual shopping with the amount of online shoppers and smart
phone users increasing at an alarming rate

11.  With options to visit shops, do online shopping from our homes or order via mCommerce while out and
about, do we really have a need for yet another virtual method? This can definitely be another big channel
for retailers
 Virtual stores have proved to be a effective in its initial days. They could act as a bridge between
advertisements and m-commerce, reminding people of groceries that they need and also providing them
with the capabilities to quickly purchase them with their smartphones
 With smaller shops facing space constraints to hold a limited range of stocks, such shops could benefit
from virtual shelves containing all of the additional stock they do not have room for.
 The success of virtual retail would also hinge on a strong back-end for order fulfilment and a supply chain
enabling timely delivery
 The concept is fascinating to consumers, virtual stores could see acceptance largely for top-up or impulse
purchases.
 Virtual-reality simulations can help managers take tactical actions such as designing retail space that can
entertain and persuade customers.
11
Are Virtual Stores the Future?

12.  https://businessamp.wordpress.com/2009/02/22/virtual-storefronts-real-advantages-
disadvantages
 http://www.brandchannel.com/home/post/The-Future-of-Retail-Reinventinge28094and-
Preserving-the-In-Store-Experience.aspx
 http://www.mcommerce.io/are-virtual-stores-the-future-17012013/
 http://en.wikipedia.org/wiki/Virtual_store_research
 http://magazine.good.is/articles/can-virtual-stores-make-shopping-more-sustainable
 https://hbr.org/1996/03/virtual-shopping-breakthrough-in-marketing-research
 http://kelley.iu.edu/cerr/files/09ismi_virtualretailing.pdf
 http://www.thecmosite.com/author.asp?doc_id=235007
 http://www.tescra.com/white%20paper/Benefits%20of%20Virtual%20Retailing.PDF
 http://www.extremetech.com/mobile/99033-virtual-stores-help-shoppers-save-real-time
 http://www.mobilecommercedaily.com/qr-code-enabled-virtual-stores-support-merchants-
mobile-shopping-strategies
References