Augment Reality in Furniture Industry

Aloysious Lee A0113487AAllen Zhang Jianliang A0132448HWanwen Huang A0120075WPrateek Singhal A0119978HIndranil Munshi A0119945UAarcha Jayachandran Sasikala A0120053ALiu Lu A0120095R

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“SmartShop Service”

Business models for other technologies can be found here:

Outline

• AR Technology Introduction

• Service Introduction

• Value Proposition

• Customer selection

• Revenue Stream

• Scope of activities

• Strategic control2

Augment Reality Introduction

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How does it work?

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What is Augmented Reality ?

Computer/mobile Generated Data

(Augment)

Physical,

Real-world environment

(Reality)

Augment Reality

Visualizes the digital

as if it’s real

Virtual object

added in it

Pick a real world scene

SmartShop Service Introductionhttps://www.youtube.com/watch?v=qzx1xMlo1kw

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How AR Tech works for Furniture

1. Content ManagementWork with the data provided and link with the online catalog

2. ModelPrepare scaled virtual 3D models

3. Service AdaptionDesign the User experience and integrate with existing sites or App

4. EngagementLaunch app and view product in the room. Rotate it, swap colors or replace it!Social Sharing

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SmartShop Service

1. Select the furniture from the Online Catalog2. Insert/move the furniture within a photo or video

3. Customize the furniture based on available options (e.g. color/size)

Measure the size of the products relative to the surrounding room and fixtures to offer a real-world perspective on physical fit in the consumer’s home.

“Utilizes AR Tech to help people visually envision the furniture in their home before their purchase”

Link to product list in service

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What the end-users seeIn a clock-wise direction

1. Place Marker on the Floor2. 3D Model of the Sofa generated

3. Sofa moved slightly to the left4. Sofa moved to the front

5. Finalized designs can be saved to the picture gallery

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Engaging end-users

SmartShopService

Online

Store

Showroom

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Perfect Blend of Traditional Furniture Shopping

• Ease of use and Convenience

• Personalization and customization

• AR visualization from any angle

• Interaction with digital objects

• Content Management

• Social media integration

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SmartShop Service Features Highlight

Value Proposition

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Shop Experience

Online Retailer

Improves customers purchase rates

Provide accurate product

representations

End user

Save effort

Do the right purchase

Value Proposition (1)

Reduce Returns Rate

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Value Proposition (2)

Online Retailer

Reduce the rate of returns

Improve profitability

End user

Purchasing Accuracy

Save time

Save money

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Value Proposition (3)

Online Retailer

Lock in users

Improve the sales of products

long-term profits

End user

Improve customer satisfaction

Improve Customer Loyalty

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Value Proposition (4)

Online Retailer

Create product awareness

Increases chances of a sale

End user

Share in real-time

Get suggestions from friends

Social Network Integration

Customer Selection

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• Price, quality, durability and functionality are key factors in decision making

• Trend of cheap design, and better aesthetics furniture

• “Lifestyle” value recognition of furniture

• Demand for online purchased products

• Manufacturers and interior designers become more creditable

• Eco-friendly products shown due to the trend of social responsibility, environmental protection

• Impact of personal information sources are greater on furniture purchase decisions

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Customer Behavior Trends

• Online furniture retailers eg: Lazada

• Physical furniture retailers with online presence eg: IKEA

• Retailers must provide detailed data of furniture to enable AR technology• 3D image

• Available Colour

• Dimension

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Customer Selection: Retailers

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Customer Selection: End Users

Traditional Value Modern

Lonely elderly

Fam

ily L

ife

Cyc

le

Empty Nest

Complete family III

Complete family II

Complete family I

Young Couple, no child

Single

Value Orientation

Style-less

Demanding Modern

Innovative Modern

TargetingOnline furniture shoppers

Value Preposition Comparison

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0

1

2

3

4

5

6

7

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Price Convenience Personalization Flexibility Real Space Trial Selection Friendly andhelpful

Employees

Strategy Canvas

AR Furniture Shopping Online Furniture Shopping Physical Store Furniture Shopping

Revenue Stream&

Scope of Activities

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Revenue Stream-Value Capture

Consumer AR Technology App Supplier

Product

B2C

Services

Free Platform

Recommendations

Promotions

Money

Data

Consumers

Products

Final Transaction

B2B

Charges

Pay Per Click

Commission per Transaction

Pay per Message Delivered to customers

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Scope of Activities

R&D

Sales

Marketing• APP UI Design• Programming• Feature enhancement

• CRM• Customers Analysis• Market Analysis• Service Distribution

Channels

• Retailers Management• Partnership management• Royalty Fee negotiation

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Strategic Control

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Strategic Control

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Sustaining Profitability

IP

Complementary Assets

Network Effects

R&D

• CopyrightUse IP to protect specific lines of codes and concepts

Shield the source code from competitors

• Tacit KnowledgeComplete knowledge of how Computer/mobile Generated

Data(Augment) integrated with Physical, Real-world environment (Reality)

Tacit knowledge to reside in key R&D personnel (CTO, R&D manager, key R&D programmers with non-disclosure agreement)

Developmental work on further improvements to core service features be kept in tacit knowledge till codes and concepts got copyright protection.

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Strategic Control-IP Protection

• Distribution channelEnable service supported by all kinds of mobile devices

Make service easier to achieve, for example, furniture bundled with our service to enlarge user bases

• PartnershipCollaborated with more e-sites to ensure that it has

industrial exposure and support from partners

• AdvertiseAdvertise this service with targeted users

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Strategic Control-Complementary Assets

• EcosystemEcosystem of customers, e-sites and service developers

Service attracts e-sites to allocate their resources more efficiently and better customized service

Customers use this service to have better shopping experience.

Data from e-sites helped us to develop better service functions, provide more professional answers of the fit, shape, colour and match of existing décor, more selections of furniture customization fields.

• User NetworksEnable customers to share pictures of the new furniture in

their room and get feedback, build network among users

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Strategic Control-Network Affects

• Speed up the R&D process, increase the switching cost for e-sites.

• Lock the customers by providing more advanced services

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Strategic Control-R&D

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Thank you for your attentionAny Questions?

Reference

1. Graham, M., Zook, M., and Boulton, A. "Augmented reality in urban places: contested content and the duplicity of code." Transactions of the Institute of British Geographers, DOI: 10.1111/j.1475-5661.2012.00539.x 2012.

2. AR Timeline http://www.crystalinks.com/ar.html3. http://www.juniperresearch.com/press-release/augmented-reality-pr2 Mobile

Augmented Reality Revenues. Last assessed 15th March 20154. http://sumo.ly/1kvX via ABI Research Augmented Reality trends. Last assessed

15th March 20155. http://www.bbc.com/news/business-29077495 Online Retail Spending Forecasts

by Forrester Research. Last assessed 15th March 20156. http://www.technologyreview.com/news/530336/furniture-shopping-with-

augmented-reality/7. http://www.vizeralabs.com/8. Consumer Behaviour Model on the Furniture Market, Éva BEDNÁRIK∗ – Judit

PAKAINÉ KOVÁTS9. Success factors for Augmented Reality Business Models, Nils van Kleef, Johan

Noltes, Sjoerd van der Spoel

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