Millennials and Augmented Reality in Retail

This assignment analyzes how millennials' preferences influence retail adoption of augmented reality (AR). It examines trends like virtual dressing rooms, interactive product experiences, and personalized customer journeys. The analysis delves into business models leveraging AR to enhance the shopping experience for millennials.

DIGITAL INNOVATION
Name
Date

Business model canvas
Key Partners Key Activities Value
Proposition
Customer
Relationship
Customer
Segments
Advertising
channels such as
print, electronic,
and social media;
Forte Fusion needs
to advertise so
customers can
know about them
Suppliers of
electronic devices
where augmented
reality can be used
are also important
partners
The most important
partner is the
supplier of
Augmented Reality
Applications that
can be used by the
fashion store
Sale of modern day
fashion with the aid
of augmented reality
using tablets/
computers and AR
app/ software
The retail stores and
channels must also
have AR devices
with AR app
Augmented reality
changing rooms
where customers
can ‘try’ clothes
using AR
Online purchases
based on AR
Customers will ‘try
out’ clothes and
other items of
fashion in a VR
(virtual reality)
changing room
without ever having
to step inside a
changing room;
customers can try as
many items of
fashion as they
want; many
customers can try
out clothes in real
time
The AR system will
offer customers
speed and
convenience; one
cat ‘try’ out a piece
of fashion every
minute without
stepping into the
changing room
Customers
can ‘try’
clothes in a
virtual web
environmen
t and make
online
purchases
Co-creation
relationship where
value is co-created
by customer and
Forte Fusion, this
has not been created
yet but will be
integrated with AR
Personal assistance
where there is
direct
communication with
customers (in
existence)
Self-service
relationship where
everything is
provided for
customers to help
themselves; has not
been created yet but
will be integrated
with AR
What is needed is
automated services
and communities
type of relationships
(Osterwalder &
Pigneur 2013).
The young and tech
savvy customers
that want the latest
fashion designs and
want to ‘try’ as
many designs as
possible. These
customers with the
latest mobile
devices, that are
active on social
media communities,
and possibly make
purchases online
(Bacon 2016)
Fans and people
who really don't
have time to step
into the fashion
store or just don't
want to step in but
want to ‘experience’
what is on offer
(Ram 2017)
Students
Young families
Women
Chikdren aged
between 10 and 17
Key Resources Channels

A user friendly web
portal
A vibrant social
media presence to
develop online
communities and
propagate
promotions
Retail stores with
Wi-Fi
Mobile tablet
devices for the
stores, connected to
the web portal
body scanning
technologies and
‘magic mirrors’
where where
customers virtually
try on fashion items
Social media
The web/ Internet
Local magazines
and e-magazines
Cost Structure Revenue Streams
Investment in technology entailing a local area
network, a wide area network with other branches or
sub-branches, and Wi-Fi internet
Procurement of an AR and VR application for Forte
Fusion (custom made)
Maintenance and scaling of AR and VR software
applications
body scanners and ‘magic mirror’
Convenience or online purchases and
delivery
Sale of fashion using VR and AR

Business canvas flow diagram

Technology analysis and trends in the context of Virtual Reality and Augmented Reality in the
fashion industry
Fashion brands know that it is imperative for them to experiment with technology whether for the
purposes of enhancing the customer retail experience or introduce fans and customers to the VR
concept (Alvarez, 2017). High luxury and fashion brands are increasingly using VR and AR to
advertise their products and to get new customers. The VR and AR platforms offer immersive and
titillating experiences that help users create dreams, only these dreams are near real. Because of this
immersive and titillating experience, VR and AR, in isolation or used together offer the fashion
industry limitless new possibilities as they can be used in several creative ways. VR can be used in
making people participate in cat walking/ runway shows where anyone can join in, from the
premium front seat row, thanks to VR. VR can be used to capture experiences showcasing product/
brand values and identity, in which case VR and AR can be used (and has been used) for advertising
purposes ('VR Marketing' 2017). Custom made VR devices such as headsets for specific brands,
such as Tommy Hilfiger and Dior have been developed to engage visitors to their stores where they
can ‘review’ and ‘see’ whats on offer; combining this with AR would create a stunning almost real
experience of customers ‘wearing and feeling’ the clothes, without even touching them.
Presently, fashion outlets are using body scanning technologies such as Kinect which scan the
person’s image and using the ‘magic mirrors’, allow the person to try out different fashion items
virtually; the customers can change what they are trying by a simple hand swipe. These magic
mirrors can be located outside the store such that people can try clothes virtually without entering
the store; call it the new ‘window trying’ ('VR Marketing' 2017). Even companies for which
technology has never played a major role in their business strategies such as GAP are looking for
creative ways such as VR and AR to engage more with their customers and fans. For instance, the
company has developed its ‘Dressing Room’ application, in collaboration with Google and
Avametric in which AR is utilized to allow shoppers and fans ‘try on’ fashion items without the
need to step into the store(Alvarez 2017).
Alignment of business model and value proposition
i. The tech savvy young customers
ii. This customer segment are the modern day young adults (millennials’) that have grown up
with technology and value convenience and choice very highly. This is the segment that use
technology, from smart phones, e-wallet and electronic payment systems to tablets such as
the iPad on a daily or regular basis (Frederick 2014).

iii. The other segment may also include the millennials but generally are internet and social
media users; these are people that seek information about a product or brand, or make
decisions based on other people’s experiences. Such people regularly use or follow blogs, as
well as use social media platforms heavily; they can both be customers and influencer's
('University of South California' 2017)
iv. The social media generation is also an important customer segment; these people want to be
the ‘first’ to try out new things and then show off to their friends. For instance, it is not
uncommon for such customers to go to a trendy fashion store, try on clothes, take pictures
and post on social media such as Instagram asking their friends for comments. They are also
members of online communities such that if Forte fashions used social media to advertise
and allow online ‘fashion trials’ through VR and AR; this could be a huge customer base
v. Passersby and window shoppers, people that want to see lots of different fashion before
deciding to make a purchase; these customers don't really want to step into the store, but can
have an immersive experience ‘trying out’ fashion through AR while outside the store.
vi. Online shoppers; with VR and AR, online shoppers can actually try fashion items, select
what they like and pay for it and have the items delivered to their homes, just using the
internet (Peterson, Gröne, Kammer & Kirscheneder, 2010)
Representative customer journey
This starts with a potential customer that is using social media platform, such as Facebook or a
blogging platform and who was interested in buying some fashion items. The individual comes
across Forte fashion’s online advert/ social media promotion that invites individuals to experience a
new ‘high’ in fashion shopping through VR and AR and lists their physical store location. The
person becomes intrigued and reads input from others, including those that have tried it. This is the
discovery phase in the journey; the person decides to find out more, and even tries the online portal
through VR or just sees the videos ('Customer Champions', 2017). The advert then offers the
customer an opportunity to download the Forte fashion’s application for free and install it in their
mobile device and invites them to visit the physical store. The person plays around with the
application and decides to visit the store on their next free day/ time. This is the research phase.
At the store, the person sees the ‘magic mirror’ connected to a body scanner, where a prompt shows
them what to do, ad voilà!; they see themselves on the screen, trying several pieces of fashion just
by swapping their hands. They then become curious and get into the store, and use their mobile
device and application they downloaded to ‘try out’ even more fashion pieces. This is the moment
of truth; they experience is just mind boggling, like a real and vivid dream and through personal
contact through the virtual platform, the customer decides to make a purchase, and records the
video of the experience, for later uploading to their social media account. An attendant then comes

to give the customer advice on various issues, such as payment, delivery, among others; and the
person becomes a customer. They then head into their social media accounts and continue spreading
the AR/ VR ‘gospel’ of Forte fashion, increasing Forte Fashion’s brand presence and attracting more
customers. The journey is depicted below;
Conclusions and Recommendation
Forte Fashions proposes to use modern technologies of AR and VR in its fashion stores; the
company is targeting the tech savvy shopper that regularly uses mobile devices, uses social media
or is a member of an online community, love technology and new experiences, and would love to
have a new shopping experience. ‘trying’ out clothes in a virtual environment. The value
proposition is to enable customers quickly try out fashion pieces in an immersive and titillating
virtual environment that is likely to keep customers coming for more. Forte Fashions should go
ahead and implement the model, given that the mainstream fashion industry has greatly taken to VR
and AR, including conservative brands like GAP (Pennington 2016). A combination of social media
marketing and brand presence, online communities, and an unforgettable user experience using VR

and AR will ensure success of the business in the short, medium, and long term. Forte Fashions
should consider using ‘magic mirrors’ and body scanners, in addition to mobile devices and its own
application to give customers inside and outside the store an immersive experience. These should be
propped with VR headsets at the stores.

References Used
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