Amongst its far-reaching consequences worldwide, the Covid-19 outbreak has brought about a massive transformation in the Retail Industry. Be it in terms of purchase patterns, spending limits, customer preferences, or service standards, the use of cutting-edge technology and data analytics has been revolutionizing this industry for many years now. But the recent pandemic has induced stark changes and advancements, paving the path for the virtual retail store, virtual shopping assistants, merchandising robots, automated checkouts, and so on. The need to balance the new norm of social distancing, while still catering to the innate need of ‘personalized shopping’ has paved a definite path for Virtual Reality in Retail.

Challenges faced by Retailers today

Before the pandemic, in-store retailing was extremely popular. Despite the advent of e-commerce, many customers staunchly preferred a personalized shopping experience. The feel of entering a brick-and-mortar store, reaching out to the aisle, selecting the desired product, and physically checking it before purchase, has been a priority for many customers. However today, the heightened emphasis on social distancing has disrupted this conventional shopping experience, exposing retailers to the following challenges:-
A majority of shoppers are hesitant to go out and shop, thus bringing footfalls down to an all-time low.
Owing to lockdowns and reduced household incomes, consumer spending has declined considerably.
Retail businesses are struggling to stay afloat with frequent lockdowns, increasing operational costs, and cut-throat competition.
Luxury Shopping has witnessed a downward trend, with the heightened emphasis on shopping for Essentials.
The overall sustainability of the Retail Chain Model (Brick-and-mortar stores coexisting with Online stores) is under the scanner.
The innate consumer need for an in-person or traditional shopping experience is still prevalent.

Decoding the Concept of the Virtual Retail Store

The Virtual Retail Store combines the swiftness and efficiency of online shopping with the conventional satisfaction of brick-and-mortar shopping. The customer can use the Virtual Reality (VR) platform to virtually visit your store from the comfort of his/her home. A Virtual Shopping Assistant is assigned with the task of helping them with their requirements, and imparting the much-coveted experience of personalized shopping. As opposed to the generic chat bots associated with online shopping, the virtual retail store offers personalized purchase guidance and a unique sensory experience that gratifies one’s need to step out and shop. From real-time product demonstrations and 360-degree product visuals to one-on-one video communication and other customized AI-driven services, there is immense scope for Virtual Reality in Retail.

Harnessing the Advantages of Virtual Reality in Retail

As retailers brace with the latest changes in this ever-evolving industry, virtual reality can indeed be a game-changer in the near future. Here are the top advantages of transitioning from brick-and-mortar stores and online stores, to the exciting realm of the Virtual Retail Store:-
Recovers the losses incurred by physical footfall dips, by enabling customers to traverse stores and shop conveniently from the comfort of their homes
Aids in intensifying your outreach and market penetration as a Retail Marketer
Helps in abiding by the new norms of physical distancing in the post-pandemic world, yet extends the benefits of traditional retail or in-person shopping
Boosts operational efficiency with modern-day data analytics and AI to steer your retail operations KOPs in line with the exact requirements of your target market segments
Tremendously improves the efficiency of your telephone marketing executives, by inoculating the concept of personalized consultation (so the number of customers lost due to dwindling footfalls can be recovered via personalized calls)
Enhances the ROI and long-term sustainability of the Retail Model by cutting operational expenses, manpower expenses, and enabling virtual shopping without the need for physical stores
Conclusion
When it comes to embracing the ‘new normal’ in the aftermath of the Covid-19 outbreak, the need for contact-less services has skyrocketed across multiple industries. As a retailer or retail business owner, navigating the complex and challenging landscape of your industry in these tough times calls for a massive technological shift. Of course, the complete transition from physical retailing to virtual retailing will take several decades to materialize. But given the current trends and insights, the future of shopping will indeed become virtual, partially in the near future, and completely in the distant future.