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Bridging	Retail	Stores	&	VR	Leandro	Agrò and	NTT	Data	|	Milano,	15	January	2018
©	DESIGN	GROUP	ITALIA
Index
01	/ VR:	Introduction
The	State	of	Art
Market	players	and	Consumers	trends
VR’s	stories
The	AR	way
SmartPhones are	powering	VR	(and	AR)
02	/ VR	@Work
Use	Cases
03	/ Opportunity	Roadmap
AR/VR	needs	in	Retail	store	
Focus	on	Utility	players
Roadmap
2
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01	/ Introduction
3
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State	of	the	Art
4
- VR	has	a	50y	long	history	behind
- In	2014	Oculus	Rift	defined	the	headset	hardware	reference,	boosting	the	competition
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What	is	VR
5
Virtual	reality	(VR)	is	a	computer	technology	that	uses	glasses,	headsets	or	multi-projected	
environments,	to	generate	realistic	images,	sounds	and	other	sensations	that	simulate	a	user's	
physical	presence	in	a	virtual	or	imaginary	environment.	
VR:	from	the	technology	point	of	view
VR:	from	the	user	point	of	view
A	person	using	virtual	reality	equipment	is	able	to	"look	around"	the	artificial	world,	and	with	
high	quality	VR	move	around	in	it	and	interact	with	virtual	features	or	items.
* While	in	a	VR	session,	the	user	is	totally	blind	and	isolated	respect	the	real	world.
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Dreaming	VR	since	1950…
6
EARLY	HEADSET:	TELEYEGLASSES	(1963)
Hugo	Gernsback inventor	of	the	term	
“science	fiction”.	 Gernsback described	his	
“teleyeglasses”	for	a	Life	magazine	article	
published	in	July	1963,	when	he	was	78.	
EARLY	3D	ENVIRONMENT:	Sensorama (1962)
The	Sensorama was	a	machine	that	is	one	of	
the	earliest	known	examples	of	immersive,	
multi-sensory	technology.	Morton	Heilig
invented	and	dubbed	it	"Experience	Theater”.
Prototyped	in	1962,	the	Sensorama was	a	
mechanical	device,	which	still	functions	today.
TELEYEGLASSES	SENSORAMA
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30	years	later… VR	Stories	for	the	masses	(since	1992)
7
NEAL	STEPHENSON	(1992):	SNOW	CRASH STEPHEN	KING	(1992):	THE	LAWNMOVER	MAN	
30	years	after	Sensorama the	idea	of	virtual	
reality	finally	emerge	in	the	consumer	mind,	
mostly	because	two	“cults”	stories.
1)	SnowCrash is	a	cyberpunk	masterpiece	
where	the	author	–Neal	Stephenson-
introduced	“the	Metaverse”	a	sort	of	virtual	
reality-based	massive	Internet.	Resembling	a	
massively	multiplayer	online	game	(MMO),	the	
Metaverse is	populated	by	user-controlled	
avatars	as	well	as	system	daemons.	
2)	The	Lawnmover Man	got	a	massive	
response	as	sci-fi	movie,	where	a	protagonist	–
leveraging	the	3D	world- become	a	vindictive	
god.		In	Lawnmover Man,	the	device	that	Is	
needed	to	perform	actions	in	the	virtual	world,	
is	a	sort	of	giant	wheel.
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20	years	later… 2012	The	Oculus	Rift
8
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2014:	From	Oculus	to	Facebook
9
PSVR	PLAYSTATION	VR	HEADSET
Born	on	kickstarter in	2012,	Oculus	was	
a	big	success.	“Zuck”	is	a	VR’s	
enthusiast	and	Oculus	was	later	
acquired	by	Facebook	for	3Billions	USD.
From	2014	to	2017,	about	250K	Oculus	
headsets	were	sold.
Why?
Facebook	may	own	three	of	the	biggest	apps	
— WhatsApp,	Facebook,	and	Messenger	—
but	it	has	relatively	little	influence	over	the	
development	of	the	mobile	devices	and	
operating	systems	on	which	they	depend.	
Instead,	it	is	Apple	and	Google	that	have	set	
the	standards	and	driven	the	adoption	of	
what	is	now	the	world's	dominant	computing	
platform.	Facebook,	with	its	focus	on	apps,	
has	largely	been	a	passenger.
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Market	players	and	consumer	trends
10
- Google	cardboard
- Few	big	players	and	thousands	of	different	plastic	headset		
- Q3	2017	about	850K	VR	headset	sold
- VR	trends	compared	to	other	tech
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2014:	Google’s	answer	to	Facebook
11
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VR	run	on	software	and	cardboard	(plus	the	phone	that	the	user	already	has)
12
Through	March	2017,	over	10	million	Cardboard	
viewers	had	shipped	and	over	160	million	Cardboard	
App	downloads	had	been	made.
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If	VR	is	a	smartphone	+	cardboard,	it’s	a	business	for	Samsung	too.
13
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SONY	Playstation VR:	For	the	players
14
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Run	VR	Like	a	pro
HTC	Vive:	the	most	complete	HW/content	environment
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VR	Christmas	sales	worldwide:	Q3	2017	
16
Source	TechCrunch
Sony	shipped	490,000	PlayStation	
VR	headsets	(399	USD)
Oculus	shipped	210,000	
Rift	headsets	(399	USD)
HTC	shipped	160,000	
Vive	units	(599	USD).
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VR’s	Stories
17
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From	NASA	concepts	to	THE	SIMPSON:	VR	it’s	now	a	thing	for	consumers
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VR	as	a	Silicon	Valley	affair:	Facebook	vs	Google
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VR	it’s	now	a	thing	for	(future)	business	too
20
Mark	Zuckerberg	has	said.	2016	was	year	zero	of	Virtual	Reality	consumer	devices	launching	in	the	
market.	Since	2018	6+	million	VR	headsets	were	sold,	from	5	companies	including	Facebook	and	Google.
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The	rise	of	gamers	army
21
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The	headset	tsunami	
22
Carl	Zeiss
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The	headset	tsunami	
23
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STAR	WARS	VR:	A	huge	delusion
25
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Comparing	two	different	tech	hype	curve	(people	attention)
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Samsung	Note	8	vs	VR
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iPhone	X		vs	VR	headsets
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From	tech	to	Experiences	(content)
29
Text	here
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Video	360°:	Another	smartphone	powered	immersive	opportunities.	
FITT360	- The	First	360° Neckband	Wearable	Camera
Unobtrusive	and	effortless	way	to	capture	and	share	your	moments	in	360° true	First-Person-View.
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The	AR	way
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What	is	augmented	Reality	(see	trough	glasses)
32
Text	here
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HOLOLENS:	Breakthrough	hardware	from	Microsoft
Official	release	2016
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HOLOLENS:	Precisely	placing	virtual	objects	in	real	space
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HOLOLENS:	Virtual	screens	everywhere.	Experiences	mapped	in	your	living	room.
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HOLOLENS:	Collaboration	&	Sharing	in	a	“mixed”	digital/physical	environment
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HOLOLENS:	Collaboration	&	Sharing	in	a	“mixed”	digital/physical	environment
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HOLOLENS:	R.I.P.
Unfortunately,	after	years,	Hololens still	far	away	to	become	a	real	product.	Microsoft	
itself	has	no	clear	future	plan	and	also	finding	the	devices	it’s	not	easy	at	all.	Hololens
was	a	relevant	step	into	AR	technology,	but	still	an	R&D result	that	nobody		can	
actually	use	to	develop	a	business’	project.
Many	of	the	use	cases	look	very	similar	to	those	of	Microsoft’s	HoloLens,	a	$3,000	USD	
augmented-reality	headset	that’s	still	very	much	under	development.	HoloLens	is	still	
being	pitched	to	developers—not	consumers—nearly	three	years	after	its	unveiling.
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MAGIC	LEAP:	Watch	out	to	the	AR	whale
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MAGIC	Leap:	finally	AR	found	a	champion?
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MAGIC	Leap:	finally	AR	found	a	champion?
Reality	is	augmented	only	insofar	as	you're	looking	
within	a	relatively	limited	space	in	front	of	you.
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MAGIC	Leap:	just	another	huge	failure	like	the	Google	Glass?
Released	in	2012/3,	Google	Glasses,	quickly	disappeared	from	people	attention
Battery	life	and	cultural	acceptability	destroyed	any	
available	use	case
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SmartPhones are	powering	VR	(and	AR)
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Augmented	Reality’s	classics	are	a	perfect	fit	on	a	smartphone
46
Text	here
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Smartphones	are	the	actual	cornerstone	of	both	AR	and	VR
47
Text	here
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02	/ VR	@work
48
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Use	cases
49
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The	next	revolution	in	retail:	AR	will	sell	jeans	and	VR	will	sell	dreams
The	current	uses	of	VR	in	retail	is	being	used	to	increase	in-store	engagement	by	
providing	customers	a	virtual	experience	that	is	complementary	to	the	store	
experience.	
Lowe’s let	shoppers	customize	a	kitchen	and	then	visualize	it	using	a	VR	headset.	
eBay created	a	VR	shopping	app	for	an	Australian	department	store.	
Macy’s launched	a	virtual	store	in	China	with	Alibaba for	Singles	day.	
(Macy’s	doesn’t	have	a	physical	retail	store	or	an	e-commerce	site	in	China	– its	first	entry	
into	the	biggest	market	in	the	world	was	through	a	virtual	store).
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Lowe's	Holoroom
The	Lowe's	Holoroom is	a	virtual	reality	home	
improvement	design	and	visualization	tool	that	
empowers	homeowners	with	an	immersive,	
intuitive	experience	in	the	room	of	their	dreams.	
Visualizing	a	home	improvement	project	is	hard	-
the	Holoroom is	here	to	help.
The	Lowe's	Holoroom was	introduced	in	2014	as	
the	first	concept	from	Lowe's	Innovation	Labs,	and	
was	available	for	six	months	in	two	Toronto	stores.	
The	next	iteration	of	the	Holoroom was	available	in	
19	stores	across	the	U.S.	beginning	in	November	
2015.	Lowe's	Innovation	Labs	will	continue	to	
refine	and	evolve	the	experiences	as	technology	
continues	to	evolve	and	we	gather	real-time	
feedback	from	customers	and	employees.
http://www.lowesinnovationlabs.com/holoroom/
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VR	for	Marketing	and	Storytelling
Virtual	reality’s	ability	to	transport	a	person	
to	a	completely	different	environment	
allows	companies	to	transform	their	
message	and	connect	to	potential	clients.	
McDonald	transformed	the	iconic	happy	
meal	box,	to	a	virtual	reality	viewer	
powered	by	customers’	smartphones.	
“Meet	Happy	Goggles	- a	unique	VR	viewer	
made	from	an	ordinary	Happy	Meal	box.	
We	believe	the	possibilities	are	endless.”
http://www.happygoggles.se/en/
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NYT	VR:	How	to	Experience	a	New	
Form	of	Storytelling	From	The	Times
Through	virtual	reality,	The	New	York	Times	
puts	you	at	the	center	of	the	stories	that	
only	we	can	tell. Experience	our	award-
winning	virtual	reality	films	by	New	York	
Times	journalists	in	an	immersive	360-
degree	video	experience.
For	the	most	immersive	NYT	VR	experience,	
watch	our	VR	films	with	Google	Cardboard.	
If	you	don’t	have	one,	you	can	still	watch	
our	VR	stories	on	your	smartphone.
We’ll	be	posting	new	virtual	reality	
films	every month	or	so.
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Virtual	reality	lets	Chinese	customers	
shop	Macy’s	New	York	store	on	the	
world’s	biggest	shopping	day.	
Macy’s	took	part	in	its	first	Singles	Day	by	
working	with	Alibaba	on	a	virtual	
experience.	In	late	October,	Alibaba	started	
selling	150,000	cardboard	VR	headsets,	
similar	to	Google	Cardboard,	for	$0.15.	
Customers	could	use	them	to	virtually	visit	
NYC	and	shop	Macy’s	famed	New	York	
flagship	store.	
Other	international	brands,	including	
Target,	CostCo,	and	Tokyo	Otaku	Mode,	are	
also	doing	 VR	shopping	with	Alibaba
https://youtu.be/wP2SXkcMhX0
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eBay	virtual	reality	based	MYER	store
eBay,	Australia’s	largest	marketplace	and	
iconic	Australian	retailer,	Myer	have	joined	
forces	to	provide	a	glimpse	into	the	future	
of	shopping	by	creating	the	world’s	first	
Virtual	Reality	(VR)	Department	Store.
The	shopper	selects	their	areas	of	interest	
at	the	beginning	of	the	experience	and	the	
store	is	custom	built	around	these	needs,	
making	the	most	relevant	products	visible	
first.	Within	the	experience	more	than	
12,500	products	from	Myer	can	be	
browsed,	selected	and	added	to	cart.
https://youtu.be/yAuiXhJPnr8
https://vr.ebay.com.au/
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IKEA		
IKEA	Place	lets	you	virtually	‘place’	
furnishings	in	your	space.	From	sofas	and	
lamps,	to	rugs	and	tables,	all	of	the	
products	in	IKEA	Place	are	3D	and	true	to	
scale	so	you	can	make	sure	it’s	just	the	
right	size,	design	and	functionality	for	
your	room.
https://www.youtube.com/watch?v=-xxOvsyNseY
“IKEA Place makes it easier to make buying decisions in
your own place, to get inspired and try many different
products, styles and colors in real-life settings with a
swipe of your finger. Augmented reality and virtual
reality will be a total game changer for retail in the
same way as the internet. Only this time, much faster,”
©	DESIGN	GROUP	ITALIA 57
Mastercard and	Swarovski	team	up	
on	new	virtual-reality	shopping	app
“The	cutting-edge	VR	technology	allows	consumers	to	fully	realize	
scale	and	engage	more	deeply	with	design	details	before	making	a	
purchase	– anywhere.”	 |	https://youtu.be/uFNFU4wgyNI
Mastercard and	Swarovski	launched	a	virtual	
reality	(VR)	shopping	app	for	the	Atelier	
Swarovski	home	décor	line,	a	collection	of	
functional	and	decorative	crystal	home	
accessories	designed	in	collaboration	with	
world-renowned	architects	and	designers.	
The	app	immerses	consumers	in	a	tastefully	
decorated	home	where	they	can	browse	and	
purchase	the	pieces	with	Mastercard.
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Nestlé	Gives	VR	Factory	Tours
VR	also	can	showcase	events	and	reveal	the	
inside	of	a	brand’s	operations.	Nestlé	did	the	
latter,	using	360º	videos	to	tell	a	story	of	
how	its	chocolate	is	made	in	its	factory	in	
Switzerland.	“The	videos	showcase	
their factory,	the	farmer	and	dairy	cows	that	
produce	the	milk	and chocolatiers preparing	
delicious	treats”.	The	videos	are	being	shown	
at	pop-up stores	in	malls	in	the	U.S.,	where	
customers	can	watch	the video	in	
headsets before	receiving	a	sample	of	the	
chocolate.
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LEGO	Uses	Augmented	Reality	To	Make	
Models	Come	To	Life.
https://www.youtube.com/watch?v=-N85srjA-GQ
Lego	stores	solved	the	challenge	of	
customers	wondering	what	the	Lego	model	
within	the	box	would	actually	look	like.	
The	in	store	technology	which	was	first	
piloted	back	in	2009	allows	customers	to	
hold	Lego	boxes	in	front	of	a	screen,	and,	
once	the	camera	detects,	a	3D	animated	
model	that	is	in	the	box	appears	on	the	
screen	which,	as	a	customer	rotates	the	box,	
the	model	rotates	with	it.	The	whole	
experience	is	very	natural,	because
customers	doesn’t	needs	to	wear	any	
device	or	use	any	smartphone.
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Apple	Park	in	reality	augmented	at	the	
Visitor	Center
Using	the	iPad,	visitors	to	the	center	are	able	
to	see	a	virtual	version	of	the	campus	
overlaid	onto	the	metal	model	in	front	of	
them.	You	can	change	the	time	of	day	to	see	
how	the	massive	glass	structures	look	as	
they’re	first	kissed	by	the	morning	sun,	etc.	
You	can	also	tap	on	any	building	to	see	a	
little	overview	of	what’s	inside,	and	get	
visualizations	of	how	solar	power	is	collected	
by	the	cells	on	the	buildings’	roofs.
“…considering	you	can	only	use	the	app	while	you’re	
already	on	the	campus,	you	could,	alternatively,	just	look	
out	the	window.”
https://www.youtube.com/watch?v=Y93mKGv3Wd0
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Lowe's	Introduces	In-Store	Navigation	
Using	Augmented	Reality
Customers	visiting	stores	in Sunnyvale,	
California and	Lynwood, Washington can	
use	Google	Tango-enabled	smartphones	to	
easily	search	for	products,	add	them	to	a	
shopping	list	and	locate	the	product	within	
the	store	using	augmented	reality.
http://www.lowesinnovationlabs.com/instorenavigation
https://www.youtube.com/watch?v=k4US6BO59YU
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Toys	‘R’	Us	woos	back	shoppers	with	
augmented	reality	in-store	game
Play	Chaser	is	a	free	augmented	reality	app,	from	
Toys	‘R’	Us	that	turns	stores	into	virtual	
playgrounds.	It	works	by	getting	users	to	point	
their	smartphone’s	camera	at	star	icons	in	the	
store	letting	them	play	virtual	games	such	as	
basketball	or	win	digital	prizes	such	as	virtual	
dolls.
Play	Chaser	is	currently	in	testing	across	23	
American	stores,	most	of	them	in	California,	New	
York	and	North	Carolina.	However,	it	should	be	
available	across	all	stores	in	the	country	as	of	
October	21st.
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AR/VR	customers’	experiences	could	look	
differently,	according	the	chosen	design	approach
©	DESIGN	GROUP	ITALIA
AR/VR	related	customers’	experiences	could	be	dramatically	
different	according	the	chosen	design	approach.		
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• Trough	a	shared	headset	in	a	public	space
• With	a	personal	VR	cardboard	at	home
• Trough	their	own	smartphones	(everywhere)
The	main	situations	in	which	users	are	using	AR/VR,	in	a	retail	related	context,	are:
©	DESIGN	GROUP	ITALIA
03	/ Opportunity	roadmap
DD	Company	/	Brand	/	Project
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©	DESIGN	GROUP	ITALIA
“Retailers	should	be	realistic	and	understand	that	it’s	still	a	work	
in	progress;	it’s	not	a	finished	beast.”
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Todd	Richmond,	
Director	of	the	Mixed	Reality	Lab
University	of	Southern	California
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Technology	might	be	already	there,	but	people	
will	accept	it	starting	from	their	humans’	needs		
Tim	Alessi,	LG's	director	of	new	product	development,	told	tech	
website	Cnet:	"3D	capability	was	never	really	universally	
embraced	in	the	industry	for	home	use,	and	it's	just	not	a	key	
buying	factor	when	selecting	a	new	TV,"
©	DESIGN	GROUP	ITALIA
Both	AR	and	VR	have	a	bright	future.	Retail	sector	has	shown	just	
a	small	glimpse	of	the	potential.	Many	other	experimentations	
might	be	done	in	directions	not	yet	adequately	explored:	
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• Try	before	you	buy	/	Remote	guidance	and	tutoring	/		Product	pack	recognition
• AR/VR	magazines,	experienced	in	store	(as	innovation	corner)	as	well	as	at	home	
• Pathfinding combined	with		a	proactive	AI	(custom	advices,	real	time	offers,	etc)
• Ad-hoc	3D/VR	video	production	and	series
• Educational	contents	(sponsored)	/	Situated	professional	training
• Immersive	video	theater	for	cinema	and	sports
• Art	and	exhibitions	/	Conferences
• Real	time	located	gaming and	social	events
©	DESIGN	GROUP	ITALIA
Additional	VR/AR	business	cases	are	not	related	to	the	end	
consumers
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• Store	design: VR	can	be	used	to	create	fixture	designs	and	produce	a	floor	plan	
from	a	bird’s-eye	perspective;
• Testing	point-of-sale	materials: P.O.S.	and	end-cap	designs	can	be	tested	in	VR	and	
eye-tracking	data	can	be	overlaid;
• Virtual	presentations. Different	designs	and	P.O.S.	materials	can	be	presented	to	
committees	or	other	decision-making	parties	in	different	regions	to	get	their	input.
©	DESIGN	GROUP	ITALIA
The	opportunity	landscape	is	huge,	but	it	is	fundamental	to	not	
follow	the	technology	hype	and	focus	the	attention	on	customers	
(and	employees)	digital	habits.
Design	Group	Italia	team	started	using	VR	since	2012,	focusing	
the	attention	to	remote	design	and	architecture	validation	
process	for	high-end	hospitality	locations	(BlueLagoon,	Iceland)	
and	other	design	advice/support	for	PepsiCo	retail	sector.
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©	DESIGN	GROUP	ITALIA
According	our	experience,	we	are	proposing	a	design	thinking		
based	approach,	that	might	start	with	the	following	steps:	
71
Phase	0:	Envision
This	presentation	is	part	of	the	envision.	To	extend	the	study	is	needed	a	technology	benchmark	and	a	strategic	classification	of	
the	VR/AR	retail	experiences	included	in	this	presentation,	plus	any	other	findable.	Last	but	not	least,	internal	and	external	
interviews.	The	main	output	is	a	list	of	the	emerged	(and	meaningful)	potential	AR/VR	projects.
Phase	1:	Framing
A	workshop	is	the	best	way	to	share	and	check	all	those	initial	scenarios,	defining	the	priorities.
TIME	FRAME	AND	PRICE	FORK	FOR	PHASE	0	and	1:	8/12	weeks	|	80/160K€	
Phase	2:	Exploring
This	phase	is	about prototypes	and	MVPs.	
Phase	3:	Making
This	is	where	the	identified	prototype/MVPs	comes	to	life.
©	DESIGN	GROUP	ITALIA
The	forecast	of	an	eventual	opportunity	roadmap	to	AR/VR	for	
Vodafone,	might	be	the	following.
72
AR	Innovation	
hub	available	in	
store	and	at	home
Branded	immersive	experiences	with	
VR	(like	a	Netflix	production,	those	
experience	brings	customers	into	a	
Vodafone	future	/	Vodafone	TV)
AR/VR	events	related	to	
specific	campaigns	
(flagship	stores	only)
In-store	VR	room	
(like	hi-fi	listening	room)
AR/VR	devices	on	
sales	plus	dedicated	
content	library	
AI-based	Try	
before	you	buy
Advanced	deploymentFirst	Wave	deploymentsPhases	0-3
Point	of	sales	design	and	
training	support
DESIGN	GROUP	ITALIA
Via	Aleardo	Aleardi,	12
20154	Milano	ITALIA
tel.	+39	02	58325272
www.designgroupitalia.it
THANK	YOU.
234	West	39th	Street
New	York,	NY	10018	USA
tel.	+1	(718)	5771385

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AR/VR retail 2018