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Virtual Dressing Room Opportunities for In-Store Retailers - Global AR Summit - Zugara
Zugara, a leader in augmented retail solutions since 2008, offers Virtual Style Sense (VSS), an advanced analytics platform designed for in-store retail aimed at enhancing customer engagement through virtual dressing rooms. The technology allows for real-time garment adjustments and analytics tracking to optimize in-store shopping experiences, addressing the decline in traditional retail against online platforms. With strategic partnerships and a strong patent portfolio, Zugara is positioned to innovate in the retail sector amidst growing adoption of augmented reality solutions.
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Virtual Dressing Room Opportunities for In-Store Retailers - Global AR Summit - Zugara
- 1. Virtual Dressing RoomOpportunities For In-Store Retailers Global AR Summit 2014
- 2. Zugara – Leaderin Augmented Retail SolutionsZugara – Leader in Augmented Retail SolutionsZugara – Leader in Augmented Retail SolutionsZugara – Leader in Augmented Retail Solutions • Leader in Augmented Reality Retail Solutions Since 2008; Natural User Interface and Analytics Focus • Over 10 Years Experience In Retail / Commerce Space • Global Distribution and Adoption of Webcam Social Shopper Platform • Next Generation Virtual Style Sense (VSS)Technology in Retail Trial; Samsung Partnership • Computer Vision and Visual Data Experts; Microsoft Kinect Beta Program • Multiple Granted and Pending Patents in AR Retail Space • Leader in Augmented Reality Retail Solutions Since 2008; Natural User Interface and Analytics Focus • Over 10 Years Experience In Retail / Commerce Space • Global Distribution and Adoption of Webcam Social Shopper Platform • Next Generation Virtual Style Sense (VSS)Technology in Retail Trial; Samsung Partnership • Computer Vision and Visual Data Experts; Microsoft Kinect Beta Program • Multiple Granted and Pending Patents in AR Retail Space Truly Social Shopping Confidential – Please do not distribute
- 3. Our Platform –1Our Platform – 1stst Generation Webcam Social ShopperGeneration Webcam Social ShopperOur Platform – 1Our Platform – 1stst Generation Webcam Social ShopperGeneration Webcam Social Shopper • Debuted in 2009 • Retail Licenses: Mattel, K-Bee, Mahindra Retail, Zawara, Life Styler, Tobi.com • Ecommerce Platform Module API (PrestaShop) • Asset Preparation Tool • Optimized for Ecommerce (Web) use • Debuted in 2009 • Retail Licenses: Mattel, K-Bee, Mahindra Retail, Zawara, Life Styler, Tobi.com • Ecommerce Platform Module API (PrestaShop) • Asset Preparation Tool • Optimized for Ecommerce (Web) use • Debuted in 2013; optimized for Kinect • Retail Licenses: SAFW, PayPal, Mattel, Nokia • Admin System via Tablet for CRM, Social Sharing and POS • Beacon Integration • Optimized for Event / OOH use • Debuted in 2013; optimized for Kinect • Retail Licenses: SAFW, PayPal, Mattel, Nokia • Admin System via Tablet for CRM, Social Sharing and POS • Beacon Integration • Optimized for Event / OOH use WSS For WebWSS For Web WSS For KiosksWSS For Kiosks Confidential – Please do not distribute
- 4. Our Platform –WSS For WebOur Platform – WSS For WebOur Platform – WSS For WebOur Platform – WSS For Web Confidential – Please do not distribute
- 5. Our Platform –WSS For KiosksOur Platform – WSS For KiosksOur Platform – WSS For KiosksOur Platform – WSS For Kiosks Confidential – Please do not distribute
- 6. Our New 2OurNew 2ndnd Generation Technology For In-Store RetailGeneration Technology For In-Store RetailOur New 2Our New 2ndnd Generation Technology For In-Store RetailGeneration Technology For In-Store Retail Confidential – Please do not distribute
- 7. Our Platform –VSS For In-Store RetailOur Platform – VSS For In-Store RetailOur Platform – VSS For In-Store RetailOur Platform – VSS For In-Store Retail • Tops, Bottoms, Multiple Garments can be digitally altered • Change colors on any garment in real time • Digital color alteration affects entire garment for true 3D effect • Analytics engine tracks how shoppers are engaging with product • Tablet Integration for social sharing and POS functionality • Tops, Bottoms, Multiple Garments can be digitally altered • Change colors on any garment in real time • Digital color alteration affects entire garment for true 3D effect • Analytics engine tracks how shoppers are engaging with product • Tablet Integration for social sharing and POS functionality Virtual Style Sense (VSS) is a next generation Virtual Dressing Room and Visual Data/Analytics Platform for In-Store Retail. VSS Brings “Online Style Analytics to the In-Store Environment” Retailers can now track in-store product engagement from ‘rack to room’ Virtual Style Sense (VSS) is a next generation Virtual Dressing Room and Visual Data/Analytics Platform for In-Store Retail. VSS Brings “Online Style Analytics to the In-Store Environment” Retailers can now track in-store product engagement from ‘rack to room’ Confidential – Please do not distribute
- 8. Our Platform –Samsung PartnershipOur Platform – Samsung PartnershipOur Platform – Samsung PartnershipOur Platform – Samsung Partnership • VSS debuted at NRF 2014 in NY with Samsung US and Nordstrom. Shortly thereafter we debuted VSS again at RBTE in London with Samsung UK and Ted Baker. Both debuts featured Samsung Large Format Displays and Galaxy Tablet integration with Zugara’s software. • VSS debuted at NRF 2014 in NY with Samsung US and Nordstrom. Shortly thereafter we debuted VSS again at RBTE in London with Samsung UK and Ted Baker. Both debuts featured Samsung Large Format Displays and Galaxy Tablet integration with Zugara’s software. Confidential – Please do not distribute
- 9. Our Platform –VSS RBTE 2014 DebutOur Platform – VSS RBTE 2014 DebutOur Platform – VSS RBTE 2014 DebutOur Platform – VSS RBTE 2014 Debut Confidential – Please do not distribute
- 10. The In-Store RetailOpportunity for Virtual Dressing Rooms Confidential – Please do not distribute
- 11. In-Store Retail OpportunityIn-StoreRetail OpportunityIn-Store Retail OpportunityIn-Store Retail Opportunity Confidential – Please do not distribute In-Store Retail Needs To Innovate and Adopt New Technology To Survive • In-store retail losing share to online retail • 20-40% conversion rates in-store compared to 2-3% online In-Store Retail Needs To Innovate and Adopt New Technology To Survive • In-store retail losing share to online retail • 20-40% conversion rates in-store compared to 2-3% online Confidential – Please do not distribute
- 12. Confidential – Pleasedo not distribute US Retail Sales (Offline vs. Online)US Retail Sales (Offline vs. Online)US Retail Sales (Offline vs. Online)US Retail Sales (Offline vs. Online)
- 13. Confidential – Pleasedo not distribute Gap Global Retail Sales (Offline vs. Online)Gap Global Retail Sales (Offline vs. Online)Gap Global Retail Sales (Offline vs. Online)Gap Global Retail Sales (Offline vs. Online)
- 14. In-Store Retail OpportunityIn-StoreRetail OpportunityIn-Store Retail OpportunityIn-Store Retail Opportunity Confidential – Please do not distribute In-Store Retail Needs To Innovate and Adopt New Technology To Survive • In-store retail losing share to online retail • 20-40% conversion rates in-store compared to 2-3% online • In-store retail losing teen demographic • In U.S., teens visits to malls dropped 30% since 2007 In-Store Retail Needs To Innovate and Adopt New Technology To Survive • In-store retail losing share to online retail • 20-40% conversion rates in-store compared to 2-3% online • In-store retail losing teen demographic • In U.S., teens visits to malls dropped 30% since 2007 Confidential – Please do not distribute
- 15. Gen Y –Intelligent Dressing Room / Interactive MirrorGen Y – Intelligent Dressing Room / Interactive MirrorGen Y – Intelligent Dressing Room / Interactive MirrorGen Y – Intelligent Dressing Room / Interactive Mirror Confidential – Please do not distribute Source: 2014 Motorola Solutions Shopping Study
- 16. Retail Associates –Tech PerceptionsRetail Associates – Tech PerceptionsRetail Associates – Tech PerceptionsRetail Associates – Tech Perceptions Confidential – Please do not distribute Source: 2014 Motorola Solutions Shopping StudySource: 2014 Motorola Solutions Shopping Study
- 17. Confidential – Pleasedo not distribute Retail Industry Executive SurveyRetail Industry Executive SurveyRetail Industry Executive SurveyRetail Industry Executive Survey
- 18. In-Store Retail OpportunityIn-StoreRetail OpportunityIn-Store Retail OpportunityIn-Store Retail Opportunity Confidential – Please do not distribute Augmented Reality And Virtual Dressing Rooms Primed for Adoption • In-store retail has been largest market segment to trial and pilot Virtual Dressing Room Solutions Augmented Reality And Virtual Dressing Rooms Primed for Adoption • In-store retail has been largest market segment to trial and pilot Virtual Dressing Room Solutions Confidential – Please do not distribute
- 19. Market Adoption AcceleratingMarketAdoption AcceleratingMarket Adoption AcceleratingMarket Adoption Accelerating Microsoft/Bloomingdales Cisco/John Lewis Marc Jacobs Marshalls LG Uniqlo / Sharp Tag Heuer Tesco In-Store Retail, OOH and Event Segments Have Been Earliest Adopters of Virtual Dressing Rooms. Over 50 implementations have appeared over last 2 years… Confidential – Please do not distribute
- 20. In-Store Retail OpportunityIn-StoreRetail OpportunityIn-Store Retail OpportunityIn-Store Retail Opportunity Confidential – Please do not distribute Augmented Reality And Virtual Dressing Rooms Primed for Adoption • In-store retail has been largest market segment to trial and pilot Virtual Dressing Room Solutions • AR past “Peak of Inflated Expectations” and entering “Slope of Enlightenment” Augmented Reality And Virtual Dressing Rooms Primed for Adoption • In-store retail has been largest market segment to trial and pilot Virtual Dressing Room Solutions • AR past “Peak of Inflated Expectations” and entering “Slope of Enlightenment” Confidential – Please do not distribute
- 21. Gartner Hype Cycle– Augmented Reality & Gesture ControlGartner Hype Cycle – Augmented Reality & Gesture ControlGartner Hype Cycle – Augmented Reality & Gesture ControlGartner Hype Cycle – Augmented Reality & Gesture Control 2010 2011 2012 2013 2014* 2010 2011 2012 2013 2014* Source: Gartner Blue = Augmented Reality Green = Gesture Recognition / Control * = Projected Blue = Augmented Reality Green = Gesture Recognition / Control * = Projected
- 22. In-Store Retail OpportunityIn-StoreRetail OpportunityIn-Store Retail OpportunityIn-Store Retail Opportunity Confidential – Please do not distribute Augmented Reality And Virtual Dressing Rooms Primed for Adoption • In-store retail has been largest market segment to trial and pilot Virtual Dressing Room Solutions • AR past “Peak of Inflated Expectations” and entering “Slope of Enlightenment” • 2nd Generation AR and Natural User Interface Technologies In Market – Kinect 2.0, Google Glass, etc. Augmented Reality And Virtual Dressing Rooms Primed for Adoption • In-store retail has been largest market segment to trial and pilot Virtual Dressing Room Solutions • AR past “Peak of Inflated Expectations” and entering “Slope of Enlightenment” • 2nd Generation AR and Natural User Interface Technologies In Market – Kinect 2.0, Google Glass, etc.
- 23. Kinect 1.0 –1Kinect 1.0 – 1stst GenerationGenerationKinect 1.0 – 1Kinect 1.0 – 1stst GenerationGeneration
- 24. Kinect 2.0 –2Kinect 2.0 – 2ndnd GenerationGenerationKinect 2.0 – 2Kinect 2.0 – 2ndnd GenerationGeneration
- 25. In-Store Retail OpportunityIn-StoreRetail OpportunityIn-Store Retail OpportunityIn-Store Retail Opportunity Confidential – Please do not distribute In Closing… • Stop Pushing Conceptual Videos and Be Honest With Retailers • Think As A Retailer and Not A Tech Company • Market Accelerating But Still Early; Data Critical In Closing… • Stop Pushing Conceptual Videos and Be Honest With Retailers • Think As A Retailer and Not A Tech Company • Market Accelerating But Still Early; Data Critical
- 26. Contact InfoContact InfoContactInfoContact Info Confidential – Please do not distribute Matthew Szymczyk Founder & CEO 310-566-7444 matt@zugara.com Alex Goldberg CTO alex@zugara.com www.zugara.com Zugara is changing the face of multi-channel retail. Since 2008, we’ve been developing Augmented Reality Retail solutions for the web, events and in- store retail. With a growing patent portfolio specific to AR & Retail, Zugara is focused on developing the future of retail today. 13101 Washington Blvd. Ste. 403 Los Angeles, CA 90066 310-566-7441 Info@zugara.com “The Best Way To Predict The Future Is To Invent It.” Alan Kay
Editor's Notes
- #2 Hello, I’m Matt Szymczyk, CEO of Zugara. Unfortunately, I could not attend the Global AR Summit in person, but thank you for having me remotely. For the presentation today, I’ll be talking about advancements with our Virtual Dressing Room platform and opportunities for In-Store Retailers.
- #3 As for Zugara, we have been the leader in Augmented Retail for the last 6 years. Our focus on has been on the Natural User Interface, AR and Visual Data. We have Over 10 years of experience in the retail and commerce space. Prior to Augmented Reality, we worked with Reebok, Walmart, Best Buy and other retailers. We currently have distribution of our software in Mexico, Latin America, South Africa, India and China. Our software is used by online, at events and in-store worldwide. We have recently partnered with Samsung for our latest next-generation platform, Virtual Style Sense. We are very excited about the strong response we have received so far from retailers and I will show some videos of our technology later in the presentation. We are Computer Vision and Visual Data experts and members of the Kinect 2 Beta Program. Finally, we have a growing patent portfolio in the Augmented Reality and Retail space.
- #4 For the last 5 years, we have had a 1st Generation Webcam Social Shopper Platform for The Web. This software has been licensed to retailers including Mattel, Mahindra Retail in India, Zawara in Malaysia, Life Styler in Australia and others. In 2012, we debuted an ecommerce platform module API for our software and now offer a module for the PrestaShop ecommerce platform. We have also recently released an Asset Preparation Tool that allows retailers to easily modify apparel items for use with our software. Last year, we debuted a Kinect-based version of our software for events and Out of Home use. This is called WSS For Kiosks. WSS For Kiosks has been licensed to PayPal, Nokia, Mattel and others. Our latest launch of WSS For Kiosks was with Nokia and our South African reseller, Virtuelle. Nokia used our software for Virtual Dressing Room kiosks through malls in South Africa. Our software comes with an admin system that can be used on a tablet device for data collection, social sharing and point of sale functionality. We have also recently integrated Beacon into our technology to show how mobile devices can interact with the Virtual Dressing Room experience.
- #5 Our web software has been used for both marketing and ecommerce related initiatives On the left is an example of Puss N Boots where you could dress up in his outfit. This campaign was for Purina and Walmart Below that is another campaign we did for Barbie where over 5,000 women worldwide uploaded their photo to the Barbie gallery wearing a virtual barbie outfit . This is one of those images. One the right, we have ecommerce related examples. On the top right is a blogger who took a photo of herself trying our software with a virtual item, and the actual physical item she purchased. On the bottom right, is a retailer in Malaysia, Zawara, that used our web software both on the web and in-store.
- #6 In 2013, we started to receive an increased amount of requests for our software for events. So we optimized the software with Kinect and created an admin system. This platform allows brands and retailers to easily customize and use our solution in a variety of ways. The admin system allows for CRM data to be captured and for users of the display to share photos socially. On the top left, is an image of the event portion of the Barbie campaign we did 2 years ago. Over Five Thousand and Two Hundred Photos were taken at the event over four days. On the top right is an example of the Kiosk unit our reseller in South Africa, Virtuelle, prepared for South Africa Fashion Week. The bottom screen is the magic mirror and the top screen is used to sell and display advertising. On the bottom left is a recent initiative we partnered with PayPal on. This was to show how Beacon could be integrated into the Virtual Dressing Room experience. At the event, attendees could select the items they wanted to purchase via tablet, then that information was sent to the displays via Beacon. Using just motions, you would select and try on your item and then wave a hand to purchase. Physical shirts were then printed out at the event.
- #7 This is a video of our latest technology, Virtual Style Sense, that we developed late last year. This video shows the initial prototype of the technology.
- #8 Our Virtual Style Sense solution was created for in-store retailers and focuses on bringing online style analytics to the in-store environment. With Virtual Style Sense, retailers can now offer an interactive dressing room experience and track product engagement Virtual Style Sense works by digitally altering the colors of physical garments in the display. We can change multiple colors, garments, textures and styles in real-time. The Digital color alteration provides for a true 3D effect. Our analytics engine helps retailers track how shoppers are using products. And finally, Virtual Style Sense comes with tablet integration for social sharing and point of sale functionality.
- #9 Earlier this year, we debuted Virtual Style Sense with Nordstrom and Samsung at the National Retail Federation’s Big Show in NY. About a month ago, we also partnered with Samsung UK and Ted Baker to also show Virtual Style Sense at the Retail Business Technology Expo in London. At both events, we integrated with Samsung displays and tablets. I’ll show a quick video here from the event, that shows how we improved the software over a 3 month period…
- #11 So now I wanted to take a few minutes to talk about why In-Store Retail is ready for Virtual Dressing Room technology.
- #12 What do we know about the In-Store Retail Segment? First, it needs to innovative and adopt new technology to survive. Online sales are cannabilizing in-store sales. However, retailers often see higher conversion rates in-store. So even though retailers might show more overall growth, if in-store sales were increasing, it would further increase their sales overall due to the higher conversion rate.
- #13 This slide only goes up to 2011, but shows in the US that in-store apparel and accessories sales are still the majority of a retailers combined online/offline sales mix.
- #14 This slide shows Gap’s global retail sales up until 2013. Again though online sales are growing, the majority of their sales are in-store. Retailers are continuing to look for innovation for their in-store environments to capture higher conversion sales.
- #15 In-store retailers are losing the teen demographic. In the U.S. teen visits to malls dropped 30% since 2007. The teen demographic makes up most of the Gen Y demographic. It’s critical that retailers offer technology for the in-store retail environment that this demographic desires.
- #16 This is a Motorola Shopping Study from this year. It shows a generational breakdown of technologies that shoppers felt would influence their shopping experience. In the highlighted area, you can see that Intelligent Dressing Rooms and Interactive Mirrors scored high with the Gen Y demographic. The Virtual Style Sense technology we created acts as both an intelligent dressing room AND interactive mirror.
- #17 This slide is also from the Motorola Shopping Study and again shows that retail associate’s also feel they should be offering Intelligent Dressing Rooms and Interactive Mirrors for their customers. Again, we created Virtual Style Sense to offer both Intelligent Dressing Room and Interactive mirror functionality. Combining the two, would place these at the top of the list.
- #18 What I also thought was important was to show this slide from a Business Insider study. Over 60% of Retail Executives cite that a Personalized Customer Experience is missing from their retail environment. Intelligent Dressing Rooms and Interactive Mirrors are the exact type of technologies that help to provide a personalized experience for the shopper.
- #19 Now that we know both retailers and younger shoppers want these Virtual Dressing Room solutions, how has the market been adopting them? In-Store retail has been the largest market segment to pilot these solutions.
- #20 Over 50 Virtual Dressing Room implementations have appeared in the in-store environment over last 2 years… You can see examples here from major retailers and tech companies – Uniqlo, Tesco, LG, Cisco and others.
- #21 - Augmented Reality itself is past it’s initial “PR” and “Hype” phase and is now entering a more productive and utility based cycle.
- #22 This is Gartner’s Hype Cycle which shows how emerging technologies typically get hyped, then fall off before they start to get adopted by the masses. Virtual Dressing Rooms take advantage of both Augmented Reality (in Blue) and Gesture Recogniton and Control – like Kinect- which is in Green. This graph is to show that both of these technologies are moving into mass adoption territory. As you can see by the Green, gesture control and recognition is much further along the hype cycle and headed towards main stream adoption. Augmented Reality (in Blue) is close behind though should catch up by 2016. Gesture technologies and Augmented Reality often share a complimentary or symbiotic relationship – they both work well when used together.
- #23 Finally, second generation technologies such as Kinect 2.0 and Google Glass are entering the market.
- #24 As an example, this is what the first Kinect camera would see…..
- #25 This is what the new Kinect 2 sees…. These second generation technologies can now take Augmented Reality to another level and are primed for retail and consumer adoption.
- #26 In Closing, there are still some obstacles that will delay adoption of Virtual Dressing Rooms by Retailers… First, companies need to be honest with retailers about their technology and costs. By showing conceptual videos that are not ready for adoption, it delays a retailers decision to implement them. Two, tech companies need to think as retailers. 3D assets are a perfect example of this. While 3D Virtual Dressing Room videos look cool, they are not practical for retailer use. The cost is too high for 3D item development and 3D items do not solve fit. This does not help a retailer… Third, retailers are looking at these solutions more carefully so it will be critical to obtain data from retail trials and pilots to show what works and what doesn’t work. Without data, retailers will not adopt any Virtual Dressing Room solutions.
- #27 Thank you for your time and I hope you enjoyed the presentation!