Innovating Retail Experiences with Augmented Reality and Edge Computing | Spiceworks Tech

Customers today want technology-driven, elevated experiences that are engaging, effective and easy. Shiva Mathur, VP of retail & consumer product goods at HCL Technologies, shares how augmented reality and edge computing can help enterprises innovate immersive retail experiences.

As users adapt to flawless digital experiences from retail and ecommerce incumbents, delivering innovative in-store experiences will become a survival strategy. AR and VR experiences powered by edge computing will keep shoppers coming back to the retail store. Let’s look at how these technologies can help drive customer delight and engagement.

Edge Computing and Retail: An Inevitable Match

After the mayhem that the pandemic brought about in the retail industry and the retail store, in particular, customers are now accustomed to seamless digital experiences delivered by ecommerce giants like Amazon and Walmart. During the pandemic, catching up to these standards was imperative for survival, and retail customers now use frictionless digital interactions to shop via their smartphones and computers. However, their expectations of the retail stores have changed as a result.

Now used to the buy-online-pick-up-in-store (BOPIS) models and checking store inventory via retailers’ apps, customers are looking for more. Leading retailers are leveraging this shift to deliver innovative and personalized experiences to shoppers by reinventing their stores. So much so that 67% retailers are considering opening new store formats. How? Enter edge computing.

What Is Edge Computing?

Edge computing is a distributed infrastructure model, where computing resources are brought closer to the periphery of the network. For example, instead of sending application data to a central server located in a massive data center, it is routed to a satellite data center that is located closer to the user. While edge computing unlocks several high-value use-cases, those powered by Augmented Reality and Virtual Reality will be of strategic interest to retailers.

The AR and VR Opportunity in Retail 

Deploying an omnichannel strategy was heralded as the key to success in retail before the pandemic. However, the pandemic emerged as an inflection point in the industry, especially as the gap between physical and digital channels began to shrink. Building upon this opportunity, retailers are infusing the in-store experience with digital interactions. Three key trends have surfaced as a result:

Such differentiating experiences have been well-received by customers and helped retailers increase their revenues as a result. In fact, AR-powered experiences can boost conversion rates by up to 94%. This is not to say that such strategies weren’t experimented with before. However, they achieved limited success because one key technology was still in its infancy: edge computing.

Edge Is the Key to Succeeding with your AR/VR Strategy

AR and VR experiences require rapid processing of data points collected from the edge. For example, a pre-trained machine learning (ML) model can be loaded onto a server deployed at the edge – collecting movement data of a shopper as they stand in front of a screen, the model can deliver inputs to the screen and simulate their movement in a clothing that they intend to purchase. In such use cases, reducing the latency between the source of data and compute resources is the key to building a seamless experience. A latency higher than 20ms can subtract from the reality of AR and VR experiences and can result in cybersickness. 

With most cloud and IT infrastructure providers offering edge computing services, retailers are well-positioned to roll out AR and VR experiences powered by the edge. However, retail brands must lay solid foundations to innovate and deliver such experiences across a network of physical stores across the globe.

Experience Innovation: A Digital Roadmap for Retailers

While AR/VR experiences strongly rely on edge computing, they are orchestrated by a well-oiled digital engine and supported by other disruptive technologies like AI, IoT, and 5G. Moreover, the edge is considered an extension of cloud-first architecture. The digital systems of the enterprise, like data platforms, ERP, and CRM ideally reside in a hybrid/multi-cloud and have been modernized. This enables modular AR/VR applications to draw data from the edge as well as the cloud, and leverage a continuum of high-speed connectivity powered by Wifi 6 and 5G to deliver data-heavy experiences seamlessly to the edge. 

Because building such applications requires expertise with multiple technologies, retail organizations may find their IT departments lacking expertise with current technologies and insights from similar transformations in the industry. Moreover, deploying such use cases in stores must be carried out overnight to prevent disruption of day-to-day operations. Therefore, partnerships with technology leaders willing to collaborate and empathize with the business in question will be critical to the success of such innovation-driven initiatives. 

What Next?

Retailers are already planning to increase their investments in edge computing over the next two years. As ecommerce giants further disrupt the retail landscape, innovating the in-store experiences will be a strategic priority for retail organizations. The AR/VR opportunity has now been rendered viable in the light of edge offerings from cloud and infrastructure providers. In collaboration with implementation partners, retailers should capitalize upon this opportunity and claim an early mover advantage in the industry.

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