Points of Purchase: Retail Realities
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APEX Insight: From booking to post flight, the opportunities to buy while traveling are abundant. In Part Six of “Points of Purchase,” we look at what virtual and augmented realities could bring to in-flight retail.
With virtual reality (VR) starting to make its way on board, a host of new advertisers and ancillary revenue opportunities will surely follow. And the good news for stakeholders exploring this technology is that passengers will most likely welcome it. A recent report from Ericsson ConsumerLab found that customers rated using VR services to see items in real size and form when shopping online above all else – including “movies that play all around me” and “to watch sports from any viewer position.”
VR headsets create an ancillary revenue opportunity for airlines in themselves.
Shopping online is as much a reality on the ground as it is an inescapability in flight – and retailers like Topshop are using VR to bring elements of traditional shopping into the process, especially when it comes to consumers’ desires to try before they buy. It’s a dilemma that’s been the bane of online retailers that see conversion rates hovering between two and four percent, versus up to 40 percent in stores, according to figures from SaleMove.com. For London Fashion Week FW14, Topshop partnered with marketing agency Inition to create a VR experience that enabled digital shoppers to select garments off the rack and evaluate the item from a 360-degree viewpoint.
Etihad, United and Lufthansa are among the airlines that have offered “try before you fly” VR experiences, but opening the door to advertisers on board may reap ancillary dividends. Cyril Jean, CEO of PXCom, thinks the travel and hospitality market is ripe for this type of immersive sales experience. “A couple of hotel chains and airlines have recently launched some tests enabling customers to discover their offerings from their seats,” he says. “For the moment, it’s more about marketing buzz and brand awareness … [But] 3-D and virtual reality in the tourism industry are breaking through, with a bright sky ahead.”
“3-D and virtual reality in the tourism industry are breaking through, with a bright sky ahead.” €” Cyril Jean, PXCom
Skylights’ immersive headsets currently fly on board XL Airways, and as the VR company’s CEO, David Dicko, points out, VR headsets create an ancillary revenue opportunity for airlines in themselves. “We’ve had traction with both classes; however, when in economy, it can be distributed and rented out as a premium entertainment ancillary service.”
“Retail Realities” was originally published in the multipart feature, “Points of Purchase,” in the October/November issue of APEX Experience magazine.