Zugara, an interactive marketing agency founded in 2001, focuses on emerging technologies like augmented reality (AR) and interactive video to enhance e-commerce experiences. The document discusses the growing importance of social media and peer influence on online shopping, highlighting key statistics about consumer behavior and engagement. It emphasizes the need for innovative solutions, such as AR, to bridge the gap between the convenience of online shopping and the emotional, social aspects of in-store experiences.

1. Changing The Future: Emerging Technologies That Will Blow Customers Away

2. 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

3. State of E-Commerce

6. Online Retail Sales Continue to Rise…

7. Web-Influenced Retail Sales Rise As Well…

8. Peers Continue To Influence Purchase Decisions

9. 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)

10. 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)

11. But What’s Missing?

12. Shopping Offline Is An Emotional and Social Experience

13. Online…Not So Much

14. The “consumer experience” has made very little progress in the last 15 years Amazon 1990’s Amazon 2010

15. And Continues To Face Obstacles Online Catalyst To Drive Purchase 45% of U.S. online shoppers abandoned shopping carts multiple times over a span of three weeks. (Paypal & ComScore)

16. We Can’t All Have Apple’s Loyalty Conversion rates are low, with the “gold standard” being between 2% and 3%

17. Return To Sender… The average return rate for online clothing retailers is about 20% but goes as high as 50% for some. (Forrester Research)

18. What Are Brands Doing To Evolve The E-Commerce Experience?

19. E-Commerce Innovations – Social Media

20. <- Zappos Interactive Product Videos <- Sales increased from 6% to 30% when product had video associated with it E-Commerce Innovations – Interactive Video Samsung Live Video Customer & -> Product Support

21. 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 Big Comscore – Chatroullette Takes The College Crowd By Storm

22. 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)

23. What Does All This Add Up To? A New Way For The Consumer To Interact With Products And Brands Online

24. E-Commerce & The Augmented “Product” Experience

25. SHOW OF HANDS: How many of you know what Augmented Reality is?

26. My reaction to AR for the 1 st time…

27. It’s when the real world is “augmented” by computer data.

28. AR is not Virtual Reality or Second Life…

29. AR is the future of how we will interact with digital information VIEW INTERACT ACCESS

30. Usually shown as reality in popular movies today…

33. AR looks cool, but is anybody actually using it?

35. Major advertising and marketing channels have started using AR

36. Online, all the consumer needs: Decent Computer

37. Online, all the consumer needs: Decent Computer Regular Web Cam

38. Often times a marker (or glyph):

39. And sometimes just an image:

40. Some AR executions require:

41. This is a barrier for the consumer

42. So beyond all the hype, what’s practical for AR in the here and now?

43. 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

44. Augmented Reality Shopping – IKEA

45. Augmented Reality Shopping – IKEA

46. Augmented Reality Shopping – Ray-Ban

47. Augmented Reality Shopping – Ray-Ban

48. Augmented Reality Shopping - Tissot

49. Augmented Reality Shopping - Tissot

50. Augmented Reality Shopping - Lego

51. Augmented Reality Shopping - Lego

52. How Do We Use AR To Enhance The E-Commerce Experience For The Consumer?

53. Focus On Utility

54. Integrate Social Media

55. No Software Downloads Online

56. “ Augmented Reality is a solution looking for a problem…”

57. Problem : How Do We Bridge The Gap Between Offline and Online Shopping Offline Shopping Social but time consuming Online Shopping Convenient but not social

58. And Give Consumers That “At The Rack” Experience, Online?

59. Solution: Augmented Reality

60. Fashionista – Integration of AR + Real-Time Personalization

61. Streaming Augmented Reality – Real-Time, Interactive Video Chat for Online Shopping

62. The Future?

63. Future Of Shopping Will Be Digital

64. “ If I had asked people what they wanted, they would have said faster horses.”

65. “ If I had asked people what they wanted, they would have said faster horses.” - Henry Ford

66. Thank You! Matthew Szymczyk CEO, Zugara [email_address] twitter.com/kobrakai facebook.com/Mhszymczyk

67. 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)

68. The Future Of AR

69. True Markerless Via An Average Webcam More Immersive Experience Online / Kiosk

70. 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

71. Connected TVs Will Be A Powerful Medium

72. “ The best way to predict the future is to invent it.” - Alan Kay