The future of Extended Reality (XR). How can brands benefit?

The future is here. Extended Reality (XR) went from being a distant futuristic endeavour to a tangible product, primed for commercial readiness in the blink of an eye. For those who have not yet come across the acronym – XR is simply the overarching term that encompasses Virtual Reality (VR), Augmented Reality (AR) and Mixed reality (MR).

A quick refresh:

Virtual Reality (VR) is about simulated experiences which bring physical and digital worlds together. It currently incorporates the use of headsets to make this possible, the most recognised being Meta’s Oculus Quest.

Augmented Reality (AR) is about placing a digital overlay on physical spaces without considering changing composition. We use AR in various parts of our daily life. The most common example of this is social media filters, a gamified example would be Pokémon GO.

Mixed Reality (MR) enables natural and intuitive interactions between humans, computers, and environments in 3D. The new reality relies on advances in computer vision, graphics processing, display technologies, input systems, and cloud computing.

To introduce their first limited edition clothing, Lego teamed up with Snapchat to create an augmented reality pop -up shop in London. After scanning the snapchat QR code, the shoppers enter a virtual shop with interactive DJ Booth, LEGO bouncer, gaming and exclusive products. This experience could be customised and personalised to the shopper.

The Extended Reality opportunity is tangible

The worlds’ largest corporations are pouring money into different forms of Extended Reality. Facebook invested $2 billion in 2014 to acquire Oculus. Fast forward to 2021, where they announced the Meta rebrand and a $10 billion investment in the development of the Metaverse.

Currently the Extended Reality market is worth £23.77 billion and is expected to exceed £355.2 billion by 2026. The rate of progress in these technologies has sped up drastically, and growth is on an exponential curve.

The opportunity for brands is tangible, and yet you’re not alone if you’re struggling to decipher where and how to begin. That’s where we come in.

There is a perception that entering the space must come with an outrageous price tag. That would have been the case a decade ago when the technology was in its infancy – now, you’d be surprised by what can be achieved. There are things that you can and should begin to do. You need to start somewhere, and we suggest dipping your toe in the water.

Understand your users and if / how they already engage in Extended Reality
Understand the opportunities around Extended Reality in detail
Start to position your brand as a market leader, capable of winning over a new generation

How are brands already active in the space?

Across industries, brands have already made significant progress in establishing presence in the virtual space. Samsung, Atari, Adidas, Nike, Skechers, PwC, and JPMorgan are just some of the businesses that have already acquired digital land.

In September 2021, Twitter announced they were considering allowing their users to use NFT’s as their profile picture. On 20th January 2022, they announced that users can pay £2.29 a month for Twitter Blue, which allows you to connect your crypto wallet and display the NFTs you own on your profile.

McDonald’s has applied for 10 metaverse- related patents. The patents allow McDonald’s to deliver food online and in person, sell NFTs, host concerts and offer entertainment.

Fashion giant Ralph Lauren is designing a 50-piece digital clothing collection in partnership with Roblox and Zepeto. CEO Patrice Louvet made it clear that “the fashion brand is chasing opportunities in the metaverse as a way to attract younger shoppers”.

He also claimed that “one of our strategies is to win over a new generation, and the new generation is there. So, we have to be there”. The following financial quarter, sales revenue at Ralph Lauren increased by 27% to $1.8 billion.

Rolex watches are using AR

Rolex watches are using AR to allow consumers to virtually try on their watches without the necessity of entering a real world retailer. Ikea has an AR database of over 2,000 products that allows consumers to virtually place true-to-scale 3D models in any space.

JP Morgan has opened a lounge in the metaverse and they see it as a multi-trillion-dollar industry in just a few years.

Take the first step in using Extended Reality

We are poised for the next step, bridging the gaps between these technologies and creative ideas that bring your brands to life. We have the enablers to conduct experimental R&D at accessible entry costs. To find out more, drop us a note on info@polarlondon.co.uk

Research on what % of your audience is in this space already
Explore what competitors are doing or not doing
Understand if and how your brand could exist using Extended Reality
Gain real KPIs around how to engage in this space

How could Extended Reality tangibly work for my brand?

Build your first tactical AR game on social
Understand the technology and platform landscape as part of any good briefing
Own your brands’ digital land
Create and trade NFT’s
Build VR experiences for your brands and customers
Turn your product into an immersive experience

In Summary

It’s not enough to ‘wait and see’ how these technologies will develop. The time is now to start a productive dialogue around what constitutes success and how it can be achieved. Through collaboration, creativity and strategic planning, brands can find their place in the Extended Reality revolution.

References

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Dean, G., 2022. Wingstop has filed a trademark to sell chicken wings in the metaverse. [online] Business Insider Africa. Available at: <https://africa.businessinsider.com/tech-insider/wingstop-has-filed-a-trademark-to-sell-chicken-wings-in-the-metaverse/44j5frk>

Douglass, R., 2022. Skechers signs lease for digital land in Decentraland metaverse. [online] FashionUnited. Available at: <https://fashionunited.uk/news/business/skechers-signs-lease-for-digital-land-in-decentraland-metaverse/2022031061955>

Johnson, E., 2017. Facebook Buys Oculus VR for $2 Billion. [online] Vox. Available at: <https://www.vox.com/2014/3/25/11624928/facebook-buys-oculus-vr-for-2-billion>

Kaaru, S., 2022. McDonald’s wants to join metaverse via virtual restaurant selling Big Macs and NFTs – CoinGeek. [online] CoinGeek. Available at: <https://coingeek.com/mcdonald-wants-to-join-metaverse-via-virtual-restaurant-selling-big-macs-and-nfts/>

Kastrenakes, J. and Popper, B., 2014. Google leads $542 million funding of mysterious augmented reality firm Magic Leap. [online] The Verge. Available at: <https://www.theverge.com/2014/10/21/7026889/magic-leap-google-leads-542-million-investment-in-augmented-reality-startup>

Loeb, W., 2022. How Entering The Metaverse Will Affect Nike’s Bottom Line. [online] Forbes. Available at: <https://www.forbes.com/sites/walterloeb/2022/01/12/how-entering-the-metaverse-will-affect-nikes-bottom-line/?sh=40a8cb7e3ac3>

McCormick, R., 2015. F1 is a sport where money talks – to the tune of over $8 million. [online] Raconteur. Available at: <https://www.raconteur.net/the-8-million-cost-of-the-road-to-formula-one/>

Milnes, H., 2022. Ralph Lauren sales rise as metaverse investments lure new shoppers. [online] Vogue Business. Available at: <https://www.voguebusiness.com/companies/ralph-lauren-sales-rise-as-metaverse-investments-lure-new-shoppers>

Newton, c., 2022. How Twitter could take NFTs mainstream. [online] The Verge. Available at: <https://www.theverge.com/2022/1/21/22894142/twitter-nft-profile-picture-hexagon-circle-mainstream>

Repko, M., 2022. RETAIL Ralph Lauren CEO says metaverse is way to tap into younger generation of shoppers. [online] cnbc. Available at: <https://www.cnbc.com/2022/01/17/ralph-lauren-ceo-says-metaverse-is-way-to-tap-into-younger-shoppers.html>

Shellings, M., 2014. Why extended reality is powering the next generation of tech companies | Financial Post. [online] Financialpost.com. Available at: <https://financialpost.com/business-trends/why-extended-reality-is-powering-the-next-generation-of-technology-companies>

UK Parliament. 2021. The impact of remote and flexible working arrangements. [online] Available at: <https://post.parliament.uk/the-impact-of-remote-and-flexible-working-arrangements/> Waterworth, K., 2022. 6 Businesses That Have Bought Land in the Metaverse | The Motley Fool. [online] The Motley Fool. Available at: <https://www.fool.com/investing/2022/02/11/7-businesses-that-have-bought-land-in-the-metavers/>