I’ve been taking a really hard look at the idea of virtual retail over the past couple of weeks, trying to validate it as a trend. While there’s no shortage of articles discussing it, most are speculative and somewhat non-committal as to if and when it could take an honest chunk out of e-com or traditional retail.
Frankly, it is hard to put a finger on it. On one hand, you have the failure of Second Life to successfully incorporate e-com into its virtual world but then you have stories like the one in Brand Week, suggesting that VR is becoming an effective an economical alternative to in-store consumer testing at Wal Mart.
Three things seem clear to me; one, the technology itself is infinitely better today than it was even a couple of years ago, explaining why companies like Wal Mart feel comfortable enough to test consumer response with it. Two, we have an entire generation of power consumers coming of age that grew up with an X-Box controller in their hands. It makes perfect sense to me that gaming and shopping will become seamless experiences for consumers-especially teens. Imagine the fun you could have by combining Grand Theft Auto and visit to your local Target store…virtually that is. Finally, most e-com is boring. I’m not saying it doesn’t work- of course it does, I’m just saying it’s not always the most engaging experience.
I’m going to keep an eye on it but I’d like to know what you think. Will virtual retail will be a serious economic reality in the next ten years?