Virtual Reality: What is it? What's next?

by Solstice Blogging
December 16, 2015

Virtual reality is something we’ve been hearing a lot about this year. So what is it? How is it being used? And, how can businesses see gains from embracing VR?

Virtual reality is the replication of an environment that simulates physical presence in places in the real world or imagined worlds and lets the user interact in that world. `

What VR is and What VR is not

  • VR is in its infancy. While we’ve been hearing about virtual reality for quite some time, VR capabilities still leave something to be desired. We’ve made progress on some of the visual components of VR, but we have yet to capitalize on other sensory experiences.
  • VR is not AR. AR, or Augmented Reality, is a technology that superimposes a computer-generated image on a user's view of the real world. So, AR enhances the world as you currently see it and VR brings you into a new world. VR is actually closer to being more widely adopted than AR because it isn’t restricted by the real world settings, whereas AR has to live in harmony with the user’s present situation. One very popular use of AR is in Snapchat filters, where AR adds a layer to the user’s face based on their interactions with the camera.
  • VR is new to the consumer market. The success of the virtual reality industry relies on the proliferation in this market. Samsung Gear VR just entered the market, which is proving to be a good option for users to get a taste of VR at a low cost. Widespread consumer adoption of the technology, however, will have to be proven over the next few months.
  • VR is not a moneymaker...yet. Just like any other digital experiment, the pioneers in VR are investing upfront to see anticipated returns down the line.

Examples

  • The New York Times just launched their own Virtual Reality app and sends their subscribers Google Cardboards. With the introduction of their new product, The NYT puts you right inside the story. You can view 360 degrees in any direction and make inferences and conclusions for yourself without bias from a journalist.
  • Sotheby’s has also begun investing in VR to showcase their luxury homes in New York City, the Hamptons, and Los Angeles. Because the current cost of VR scanning is high ($300-$700) per home, it makes more sense to do high-end properties. Agents can walk their clients through tours of homes, see where they’re looking on the screen, and address their questions just like they would in person. The convenience Sotheby’s is bringing their customers that they can show their clients homes across the country all from the convenience of their couch.
  • Car manufacturers like Audi are capitalizing on VR by offering customers headsets that let them look at different color, feature, and technology options. By programming the options into an app or headset, Audi can provide more options digitally than they could physically and reduce their manufacturing costs. Audi can also upsell their customers by programming ideal conditions and showcasing more premium features in their demos.
  • Retailers like The North Face are experimenting with VR to improve engagement with their customers and immerse them in a life of endless exploration. Customers can visit their stores and be transported to Yosemite National Park through a VR headset to see the sights and get excited to do more exploring.
  • Here at Solstice we also built our own VR experience with Solstice VTour. By downloading our virtual app and using a Google cardboard,  we can easily show the world what it is like to work inside of our four walls. 

Trends and Opportunities in VR

  • Virtual reality isn’t a good option for every industry. It’s best suited for those who are associated with innovation and creating trends such as technology, fashion, commerce, and auto. It’s not intended for businesses where the quality of individual products off the line may differ -- don’t expect to see a Whole Foods VR shopping experience any time soon.
  • Similarly, brands that have highly curated stores and processes can capitalize on VR by providing superior experiences to customers beyond their brick and mortar space to increase sales. For example, a luxury hotel could provide a VR experience to highlight their services, amenities, and local culture to persuade customers to extend their stay or buy a spa package. Businesses that depend on creating memorable experiences could take advantage of the VR trend by providing that experience to a broader audience with higher frequency to drive revenue.

With Oculus Rift opening to the public in early 2016, we’ll get some real data on how interested consumers actually are in the virtual reality space. If consumers adopt this technology, businesses will inherently need to follow in order to remain relevant to their customers. At the very least, brands should start to determine what impact VR could have on their business, what the opportunities are, and whether or not VR is a good fit for them.

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