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The Future of Retail: The Virtual Space Is In.

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Augmented Reality und Virtual Reality im Handel

Michael Buchacher of DMS on “The Future of Retail”

We recently went on a research trip to the United States – more precisely, Michael Buchacher, CEO of DMS, made the journey to return with a wealth of fresh insights. The mission: nothing less than exploring The Future of Retail.

The program included workshops, seminars, and expert talks at renowned institutions like FIT, Columbia University, and the MIT Lab in Boston. The trip was organized by the Austrian Trade Commission in New York on the occasion of NRF 2019 – the National Retail Federation Trade Show.

Here’s the first part of our findings, focused on the fashion industry: Digitalization has fully arrived at the Point of Sale. Personalization and individualization are the key themes in brick-and-mortar retail – and technology is here to help.

From Point of Sale to Point of Excellence

That’s what today’s customers want – turning the Point of Sale into a Point of Excellence. A survey conducted by the Austrian Economic Chamber confirms this. What’s being asked for: more professionalism, better know-how, and personalized service.

Two standout examples: Indochino and Bonobos, both U.S. fashion brands. At each store, customers are assisted by a personal stylist – available by appointment – for one-on-one consultations, even down to made-to-measure suits.

Always In Style: The Store of the Future

These stylists are equipped with tablets, allowing customers to pay directly without waiting at a register – and with a higher level of service. The devices provide access to customer shopping history, both online and offline.

According to research, 40% of shoppers expect sales associates to know their past purchases. The more retailers understand about the customer journey, the more they can tailor the in-store experience to meet individual needs. (Data Analytics by DMS)

Borderless – Just Like Success

Climbing into the mountains without leaving the store? Yes – that’s possible. Because the Point of Sale is now as limitless as success itself.

Merrell, a U.S. outdoor footwear brand, gave visitors to the Sundance Film Festival the chance to embark on a virtual hike using a VR headset. Hundreds of participants – mostly young people – experienced breathtaking trails while discovering a new hiking shoe. This immersive product story created an unforgettable shopping experience.

The result: over 4,000 pairs sold through Merrell’s online platform, and social media engagement jumped by more than 860%.

When Shopping Becomes a Wow Experience

Augmented Reality (AR) and Virtual Reality (VR) help merge physical and digital spaces. These technologies reduce friction points in the shopping journey: from store navigation to virtual try-ons and contactless checkouts.

Retailers who leverage the right tech for their brand can gamify and enhance the shopping experience – creating real competitive advantage. According to a study by Splendid Research (Hamburg), real-time augmentation of reality is becoming increasingly important in physical retail.

The study found that customer interest in AR is already high – even among those who have never used it. In fact, one in two people with no AR experience still express interest in trying it.

Multiple Channels, Multiple Benefits

A great example – though not part of our U.S. trip – comes from Zara, which transformed store windows into AR display zones. By pointing a smartphone with the Zara app at a window, screen, or specific in-store marker, shoppers saw two models showcasing items from the latest collection.

The added bonus? Customers could instantly “like” a look and either buy it online, take it home, or pick it up in-store. Zara tested this feature in five stores across Germany – with strong results.

More Power for Online Retail

Online returns are a costly challenge. In 2015 alone, clothing worth an estimated $62 billion was returned worldwide. Most of these costs are absorbed by retailers.

The Financial Times reported that returned products pass through seven sets of hands before they’re fit for resale. But AR helps cut these costs – by bringing the in-store experience to customers’ homes via mobile apps.

With AR, products can be visualized in real environments. L’Oréal, for example, allows users to virtually test makeup directly on their face through its app.

Our Conclusion

As mentioned at the start: Customers want the Point of Sale to become a Point of Excellence. They expect more professionalism and personalized advice.

Technology is making this possible – offering retailers powerful data to meet customer needs more individually than ever before. And AR and VR are no longer futuristic fantasies. They’re already creating shopping experiences that leave a lasting impression.

AR helps solve pain points in both physical retail (e.g. store navigation) and e-commerce (e.g. costly returns). And thanks to Michael Buchacher, we’ve brought back these valuable insights from our journey – and are already applying them in our daily business at DMS.