Commerce/Trading is always changing - from small tweaks to whole new ecosystems being created.

I get it: Things like Immersive Commerce, 3D product models, VR/AR, or AI-powered agents still sound like a crazy conversation for many people.

“Just another trend”, “Why would companies change what’s working?”, and “It just makes things more complex” are phrases that I hear every once in a while when talking about those topics.

But think about this: 30 years ago people found it crazy when Burger King started accepting credit cards in the US:

“I can't imagine it working on a day-to-day basis here"

Back in October 2023, in our edition #11, we explored the “Immersive Web” and how different industries and projects could leverage new tech to create better, more engaging experiences.

Today, you are invited to join me as we dive into its application to commerce - and if that sounds too “futuristic”, remember that not long ago, “online shopping” was also something small.

A few weeks ago I posted a video on my LinkedIn talking about this evolution.
Click here if you want to check it out.

LFG!

New challenges need new solutions:
Dealing with a new generation of consumers 

In today's fast-paced world, traditional commerce and e-commerce face several challenges that may hinder their growth and customer satisfaction.

One major issue is the usual lack of personalized shopping experiences. Consumers today expect brands to cater to their individual preferences, offering tailored recommendations that enhance their shopping journey.
Unfortunately, many businesses fall short, resulting in a generic, one-size-fits-all approach that fails to engage customers deeply.

Additionally, the shopping experience itself often feels static and uninspiring.

Traditional and online stores struggle to provide interactive, engaging environments that captivate shoppers. This is particularly evident when compared to the expectations of younger generations, who crave dynamic and immersive experiences.

As digital natives, they are accustomed to high levels of interactivity and expect the same from their shopping experiences. This generational shift is driving the need for more innovative approaches to commerce.

In edition #19 I shared some insights about these expectations - and challenges - that appeared when new waves of consumers joined the discussion, including this chart:

Finally, the competitive nature of the e-commerce market means that brands must continually find new ways to stand out. Standard marketing tactics are no longer sufficient.

To capture and retain the attention of savvy consumers, businesses must adopt technologies that transform the shopping experience from mundane to extraordinary (which doesn’t mean making it more complicated).

Understanding the new space:
What is Immersive Commerce?

Immersive Commerce / Immersive e-Commerce

Web3 Commerce

iCommerce (“i” for “immersive”)

E-commerce 4.0

No matter what you want to call it, Immersive Commerce is already enhancing the shopping experience by integrating advanced technologies like augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) - and more.

One of the most important things is that it allows customers to engage with products and brands in a more interactive and personalized manner. Unlike traditional e-commerce, immersive commerce creates a multi-sensory environment that (more) closely mimics in-store shopping, making the experience more engaging and memorable.

One of the primary components of immersive commerce is AR, which overlays digital information onto the physical world.
This technology enables customers to visualize products in their own space before making a purchase, enhancing confidence in their buying decisions.

For instance, furniture retailers can use AR to show how a piece of furniture would look in a customer's home, reducing the uncertainty that often accompanies online shopping.

VR takes the immersive experience a step further by creating entirely virtual environments where customers can explore and interact with products.
It is particularly beneficial for industries like real estate and automotive (but not only), where customers can take virtual tours of properties or test-drive cars without leaving their homes.

VR not only enhances the shopping experience but also saves time and resources for both consumers and businesses.

AI plays a crucial role in immersive commerce by analyzing customer data to deliver personalized recommendations and experiences. By understanding individual preferences and behaviors, AI can create tailored shopping journeys that resonate with each customer.

This level of personalization helps build stronger connections between brands and consumers, fostering loyalty and increasing sales.

If you are still skeptical about AI’s future → according to “Research and Markets”, the global AI in retail market size is expected to reach $24.1 billion by 2028.

But despite all this jargon, Immersive commerce is not just about technology; it's about creating a seamless and enjoyable shopping experience that meets the evolving expectations of today's consumers.

And based on everything I have been seeing with some of the clients and partners that I’m working with, the future of retail promises to be a lot more interactive, personalized, and engaging.

So, for starters, here are some important information to keep in mind:

→ AR Integration: Augmented Reality allows customers to visualize products in their environment, enhancing purchase confidence.

→ VR Experiences: Virtual Reality creates immersive environments for exploring products, beneficial for industries like real estate and automotive.

→ AI Personalization: Artificial Intelligence delivers personalized recommendations based on customer data, enhancing shopping experiences.

→ Enhanced Engagement: Immersive commerce creates a multi-sensory shopping experience, making it more engaging and memorable.

Tech, yes, but much more:
The role of Immersive Experiences in modern retail

In the competitive (battle)field of modern retail, offering better, more engaging experiences has become crucial for brands and companies aiming to differentiate themselves and connect more deeply with their customers.

Immersive solutions provide a unique way to stand out by creating memorable interactions that go beyond traditional shopping methods.

Firstly, immersive experiences can significantly enhance customer engagement. By integrating AR, VR, AI, and other tech into their shopping platforms, brands can offer customers a hands-on experience that captures most of the positive things about in-person shopping.

This level of interaction not only captures attention but also encourages longer engagement times, increasing the likelihood of conversion and purchase.

Moreover, immersive commerce helps build stronger emotional connections with customers. When shoppers can visualize how products fit into their lives through AR or take virtual tours using VR, they are more likely to feel a personal connection to the brand.

This emotional engagement fosters brand loyalty and tends to encourage repeat purchases, as customers remember the unique and enjoyable experiences they had.

“This sounds interesting, but how do I/my company control metrics?”

I know that as “fun” as this whole discussion may sound, there’s still the need for metrics, KPIs, etc.

Good news then: Immersive experiences also provide valuable data and insights into customer preferences and behaviors. By tracking how customers interact with virtual products and environments, brands can gain a deeper understanding of their needs and tailor future offerings accordingly.

This data-driven approach allows for continuous improvement and innovation, ensuring that brands remain relevant and competitive in a rapidly changing market - and that report/slide presentation that your boss asked can also include a lot of numbers 😅 .

Furthermore, customers are increasingly drawn to brands that embrace new technologies and offer cutting-edge experiences. By adopting a more immersive approach, companies can position themselves as pioneers, attracting tech-savvy consumers and setting themselves apart from competitors.

No, it’s not “just” VR/AR

By now, some of you might be thinking: “OK, but what else can we do when it comes to Immersive Commerce?”…

Immersive commerce offers a variety of experiences that can be tailored to different industries and customer needs. These experiences leverage advanced technologies to create interactive and engaging shopping environments that resonate with modern consumers.

Interactive 3D models, for instance, are another type of immersive experience that enhances online shopping. These models allow customers to view products from all angles and interact with them in real time.

This technology is widely used in fashion and retail, where customers can see how clothes fit on 3D avatars or explore the intricate details of products before making a purchase.

(For a deeper dive into Web3 in the Fashion Industry, check our edition #12)

Live streaming and virtual shopping events also offer immersive experiences that bridge the gap between online and in-store shopping. Brands can host live demonstrations, Q&A sessions, and exclusive product launches, creating a sense of excitement and community among customers.

By the way, back in edition #24 we talked a lot about Web3 in Retail.

Another very interesting option is AI-powered chatbots and virtual assistants that can enhance the shopping experience by offering personalized recommendations and assistance.

These tools use customer data to provide tailored suggestions, answer queries, and guide customers through their shopping journey.

These technologies are transforming the retail landscape, offering customers new and exciting ways to engage with brands and products.

The thing is: are YOU (or your company) ready for this new era?

“I am sure this is just the beginning”

I know that “we are early” sounds like a big cliché. But, well, we ARE early.

Think about how many people around you are talking about this new environment for (e)commerce.

Yes, we have evolved a lot in the last few years, but there’s still a long way ahead, which means a lot of opportunities for both brands and professionals.

“immersive ecommerce is going to be big”

Same page here, Aram 🤝 .

Many businesses are already leveraging this new space, and based on what I’ve been seeing, we are not slowing down any time soon.

“The real tea is def that immersive commerce—think VR shopping experiences, AR product try-ons, and AI-driven personalization—is about to flip the whole game. It’s not just shopping; it’s an experience, making you feel like you’re in the store without stepping out your door”

I mean… that’s a GREAT summary 😃.

“Shifting from 2D to 3D first opens up many new opportunities for the whole business, not just e-commerce”

Exactly!
I know that we have talked a lot about the “commerce” aspect, but there are opportunities in MANY different paths, such as education, training, and art, just to name a few.

And stay tuned, because we’ll soon go deeper into the world of Immersive Commerce 👊. 

See you soon.

#LFGrow
Diego Borgo