Introduction: How are virtual stores revolutionizing online shopping?

What is a virtual store?

A virtual store is a virtual space that allows consumers to purchase products and services in an immersive online store. Unlike a physical store, a virtual store is accessible from any location and at any time of day.

But, what are the differences between virtual stores and e-commerce?

Virtual Store vs E-commerce

E-commerce and virtual stores are two concepts related to online commerce. There are however some notable differences between the two. E-commerce, also called electronic commerce, refers to the sale of goods or services online via a dedicated website. The transactions are done entirely online and the products are shipped directly to the customer.

In contrast, virtual stores are online platforms that allow physical stores to expand their online presence. Products can be delivered to stores or to the home. In addition, virtual stores immerse customers in a virtual store environment.

In short, e-commerce focuses on online sales via dedicated websites, while virtual stores allow physical stores to expand their online presence and offer an immersive virtual shopping experience

E-commerce is growing more and more according to Fevad. Indeed, its growth rate in the third quarter of 2022 has increased by 16.8% compared to the third quarter of 2021. And for good reason, almost all brands offer their products for sale on the Internet. This via their own site or through market places.

Virtual stores are useful for businesses that sell products or services online as they allow customers to virtually see and handle the products before purchasing them.

Context: How are virtual stores revolutionizing online shopping?

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Advantages of virtual stores

• Customer experience: virtual stores improve the customer experience. Indeed, these immersive experiences are favored by different factors such as merchandising, the choice of music or colors, the positioning of products, the displays...

• Accessibility: virtual stores are available 24/7 and at any location. No need to travel or connect via a virtual reality headset. All you need is a phone, tablet or computer. Users will only have to click on the purchase button to put the products they want in the cart.
• Varied choices: virtual stores, like e-commerce sites, offer a very varied choice of products. They are accessible from product cards or carousels. The product offer of virtual stores is infinite, which is not the case in physical stores. For the customer, it is easier to compare prices and products from a larger offer.
• Savings: Often, prices on virtual stores are more competitive due to their low operating costs. Businesses do not have to pay rent for a store or hire staff. These savings can therefore be an advantage for customers who enjoy lower prices than in physical stores.
• Personalization: customers can filter their preferences on products like color, shape, size etc... They can therefore personalize their customer experience.
• Data collection: Sellers can collect data about customers' preferences and buying habits and offer them personalized recommendations.
• International: Virtual stores allow companies to reach a global audience, which can help increase sales.
• Reviews & communities: virtual stores allow customers to communicate with virtual sellers and leave reviews on the products they have ordered. These comments can be useful for other customers who might want to check out. It can also be beneficial for the company, because, thanks to these comments, it will be able to know what can be improved on the products.

Disadvantages of virtual blinds

Although virtual blinds have many advantages, they also have several disadvantages:

• Competition: virtual stores are becoming more and more common, so companies must stand out even more. It is essential to personalize this immersive experience and to reflect the brand universe. Moreover, communication to highlight the virtual store is essential.
• Data security: virtual stores store more or less sensitive information about customers such as bank or telephone details. Companies must therefore take security measures to protect this information from cyber attacks. This part is generally the responsibility of the CMS on which the virtual stores are connected (Prestashop, Shopify, Magento).
• Logistics: companies must have an infrastructure that allows them to store their goods. They must also guarantee efficient delivery to their customers and are dependent on logisticians.
• Customer satisfaction: brands need to satisfy their customers as much as possible in order to build loyalty and acquire new customers. If the company has negative reviews, this can lead to a loss of customers, a degraded brand image and therefore a drop in sales and turnover.

Generation Z and virtual stores

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First of all, what is Generation Z?

Generation Z is composed of young people born between the late 1990s and early 2010s. They grew up with digital technologies and social networks. This generation is particularly sensitive to technological innovation, which makes them an ideal audience for virtual reality.

VR and especially virtual stores offer a unique experience that allows users to feel completely immersed in virtual environments. VR headsets and virtual stores allow people to experience new things and explore virtual worlds. Generation Z youth are excited to discover new technologies and experiences.

According to the study conducted in October 2015 by Greenlight VR and Touchstone Research, nearly 8 out of 10 young people in Generation Z now say they are interested in virtual reality.

Examples of brands using virtual stores

There are many brands that use virtual stores to sell their products online, here are some examples:

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Nike

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The sports brand offers an online virtual store that allows customers to browse and purchase their RTFKT products in a virtual store on Roblox. Customers can explore the different virtual shoe, apparel and sports accessory collections and buy directly online. The experience is then immersive with features such as 360-degree view, zoom and video presentations.

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Ralph Lauren

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Ralph Lauren has also launched its virtual store developed by Obsess.

The Ralph Lauren virtual store is an immersive online shopping experience that allows customers to discover the brand and the most beautiful stores around the world in an interactive way.

The virtual store allows you to visualize product sheets and collections in a photorealistic way.

This immersive virtual tour allows customers to immerse themselves in the world of the brand and to have the opportunity to physically visit the points of sale in question.

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Lacoste

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Lacoste has launched its very first virtual store, developed by Emperia.

Unlike Ralph Lauren, Lacoste's virtual store is a VR virtual store that offers a unique and immersive experience to the brand's customers.

It reflects the elegance, sport and refinement characteristic of the brand.

Customers can view the products in 3D and access the product sheets.

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The New Cellar

La Nouvelle Cave was founded in 2019 and is located in Paris. It belongs to the Casino group. The Casino Group had a turnover of 30.5 billion euros in 2022.

The company offers an innovative digitalized advice! In addition to the expert wine merchants, there is also a digital sommelier developed with Matcha, a start-up specialized in wine. It allows customers to be guided to the right bottle thanks to a light guidance system.

La Nouvelle Cave has developed a virtual store with our teams. The objective is to address the Z generation in an immersive, interactive and content-rich way. Just like a point of sale experience, the customer can chat with the cellarman, move around the shelves, interact with the 3D modeled products and put them in the basket.

Note that all the content of this store is automatically updated through the interface (API) with the CMS Shopify. The customer does not have to leave the application to make a purchase.

Another particularity is that this virtual store is optimized for mobiles, in order to facilitate m-commerce. Let's not forget that generation Z was born with a cell phone in hand!

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The benefits of the virtual store La Nouvelle Cave

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La Nouvelle Cave has seen a 15% increase in traffic in the three months following the launch of the solution. The virtual store also generated 6% more sales and a 36% increase in the average shopping basket. Moreover, the launch of the virtual store has generated a lot of communication.

Moreover, La Nouvelle Cave has been selected for the Innovation prize at the Favori e-commerce grand prix and takes second place with the development of its virtual store thanks to the Retail VR platform!

We are very proud to have contributed to this medal.

Conclusion: How are virtual stores revolutionizing online shopping?

Virtual stores offer significant benefits to brands in terms of brand image, visual merchandising and product interaction. Customers are increasingly looking for immersive experiences and virtual stores help meet this demand by providing a more interactive and personalized online shopping platform.

However, there are also drawbacks, especially in terms of the technologies to create and maintain these platforms. It is important to find the right balance between virtual interaction and human interaction whether it is through a vendor or a robot.

Despite these drawbacks, virtual stores offer great opportunities for brands looking to differentiate themselves and offer unique experiences to their customers. By using this kind of technology, brands can strengthen their brand image, improve visual merchandising and offer more engaging product interactions.

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