augmented reality for furniture shopping
TRANSCRIPT
Augment Reality in Furniture Industry
Aloysious Lee A0113487AAllen Zhang Jianliang A0132448HWanwen Huang A0120075WPrateek Singhal A0119978HIndranil Munshi A0119945UAarcha Jayachandran Sasikala A0120053ALiu Lu A0120095R
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“SmartShop Service”
Business models for other technologies can be found here:
Outline
• AR Technology Introduction
• Service Introduction
• Value Proposition
• Customer selection
• Revenue Stream
• Scope of activities
• Strategic control2
Augment Reality Introduction
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How does it work?
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What is Augmented Reality ?
Computer/mobile Generated Data
(Augment)
Physical,
Real-world environment
(Reality)
Augment Reality
Visualizes the digital
as if it’s real
Virtual object
added in it
Pick a real world scene
SmartShop Service Introductionhttps://www.youtube.com/watch?v=qzx1xMlo1kw
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How AR Tech works for Furniture
1. Content ManagementWork with the data provided and link with the online catalog
2. ModelPrepare scaled virtual 3D models
3. Service AdaptionDesign the User experience and integrate with existing sites or App
4. EngagementLaunch app and view product in the room. Rotate it, swap colors or replace it!Social Sharing
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SmartShop Service
1. Select the furniture from the Online Catalog2. Insert/move the furniture within a photo or video
3. Customize the furniture based on available options (e.g. color/size)
Measure the size of the products relative to the surrounding room and fixtures to offer a real-world perspective on physical fit in the consumer’s home.
“Utilizes AR Tech to help people visually envision the furniture in their home before their purchase”
Link to product list in service
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What the end-users seeIn a clock-wise direction
1. Place Marker on the Floor2. 3D Model of the Sofa generated
3. Sofa moved slightly to the left4. Sofa moved to the front
5. Finalized designs can be saved to the picture gallery
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Engaging end-users
SmartShopService
Online
Store
Showroom
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Perfect Blend of Traditional Furniture Shopping
• Ease of use and Convenience
• Personalization and customization
• AR visualization from any angle
• Interaction with digital objects
• Content Management
• Social media integration
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SmartShop Service Features Highlight
Value Proposition
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Shop Experience
Online Retailer
Improves customers purchase rates
Provide accurate product
representations
End user
Save effort
Do the right purchase
Value Proposition (1)
Reduce Returns Rate
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Value Proposition (2)
Online Retailer
Reduce the rate of returns
Improve profitability
End user
Purchasing Accuracy
Save time
Save money
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Value Proposition (3)
Online Retailer
Lock in users
Improve the sales of products
long-term profits
End user
Improve customer satisfaction
Improve Customer Loyalty
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Value Proposition (4)
Online Retailer
Create product awareness
Increases chances of a sale
End user
Share in real-time
Get suggestions from friends
Social Network Integration
Customer Selection
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• Price, quality, durability and functionality are key factors in decision making
• Trend of cheap design, and better aesthetics furniture
• “Lifestyle” value recognition of furniture
• Demand for online purchased products
• Manufacturers and interior designers become more creditable
• Eco-friendly products shown due to the trend of social responsibility, environmental protection
• Impact of personal information sources are greater on furniture purchase decisions
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Customer Behavior Trends
• Online furniture retailers eg: Lazada
• Physical furniture retailers with online presence eg: IKEA
• Retailers must provide detailed data of furniture to enable AR technology• 3D image
• Available Colour
• Dimension
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Customer Selection: Retailers
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Customer Selection: End Users
Traditional Value Modern
Lonely elderly
Fam
ily L
ife
Cyc
le
Empty Nest
Complete family III
Complete family II
Complete family I
Young Couple, no child
Single
Value Orientation
Style-less
Demanding Modern
Innovative Modern
TargetingOnline furniture shoppers
Value Preposition Comparison
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0
1
2
3
4
5
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7
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Price Convenience Personalization Flexibility Real Space Trial Selection Friendly andhelpful
Employees
Strategy Canvas
AR Furniture Shopping Online Furniture Shopping Physical Store Furniture Shopping
Revenue Stream&
Scope of Activities
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Revenue Stream-Value Capture
Consumer AR Technology App Supplier
Product
B2C
Services
Free Platform
Recommendations
Promotions
Money
Data
Consumers
Products
Final Transaction
B2B
Charges
Pay Per Click
Commission per Transaction
Pay per Message Delivered to customers
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Scope of Activities
R&D
Sales
Marketing• APP UI Design• Programming• Feature enhancement
• CRM• Customers Analysis• Market Analysis• Service Distribution
Channels
• Retailers Management• Partnership management• Royalty Fee negotiation
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Strategic Control
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Strategic Control
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Sustaining Profitability
IP
Complementary Assets
Network Effects
R&D
• CopyrightUse IP to protect specific lines of codes and concepts
Shield the source code from competitors
• Tacit KnowledgeComplete knowledge of how Computer/mobile Generated
Data(Augment) integrated with Physical, Real-world environment (Reality)
Tacit knowledge to reside in key R&D personnel (CTO, R&D manager, key R&D programmers with non-disclosure agreement)
Developmental work on further improvements to core service features be kept in tacit knowledge till codes and concepts got copyright protection.
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Strategic Control-IP Protection
• Distribution channelEnable service supported by all kinds of mobile devices
Make service easier to achieve, for example, furniture bundled with our service to enlarge user bases
• PartnershipCollaborated with more e-sites to ensure that it has
industrial exposure and support from partners
• AdvertiseAdvertise this service with targeted users
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Strategic Control-Complementary Assets
• EcosystemEcosystem of customers, e-sites and service developers
Service attracts e-sites to allocate their resources more efficiently and better customized service
Customers use this service to have better shopping experience.
Data from e-sites helped us to develop better service functions, provide more professional answers of the fit, shape, colour and match of existing décor, more selections of furniture customization fields.
• User NetworksEnable customers to share pictures of the new furniture in
their room and get feedback, build network among users
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Strategic Control-Network Affects
• Speed up the R&D process, increase the switching cost for e-sites.
• Lock the customers by providing more advanced services
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Strategic Control-R&D
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Thank you for your attentionAny Questions?
Reference
1. Graham, M., Zook, M., and Boulton, A. "Augmented reality in urban places: contested content and the duplicity of code." Transactions of the Institute of British Geographers, DOI: 10.1111/j.1475-5661.2012.00539.x 2012.
2. AR Timeline http://www.crystalinks.com/ar.html3. http://www.juniperresearch.com/press-release/augmented-reality-pr2 Mobile
Augmented Reality Revenues. Last assessed 15th March 20154. http://sumo.ly/1kvX via ABI Research Augmented Reality trends. Last assessed
15th March 20155. http://www.bbc.com/news/business-29077495 Online Retail Spending Forecasts
by Forrester Research. Last assessed 15th March 20156. http://www.technologyreview.com/news/530336/furniture-shopping-with-
augmented-reality/7. http://www.vizeralabs.com/8. Consumer Behaviour Model on the Furniture Market, Éva BEDNÁRIK∗ – Judit
PAKAINÉ KOVÁTS9. Success factors for Augmented Reality Business Models, Nils van Kleef, Johan
Noltes, Sjoerd van der Spoel
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