Ukraine is in extremely difficult conditions of unmotivated Russian military aggression aimed at the destruction of our state. A large number of civilians suffered physical and psychological injuries, many soldiers gave their lives for the freedom of Ukraine, a considerable number of defenders were injured. About 30% of Ukrainian enterprises have completely stopped their economic activity, and only 45% are partially working.
Post-war recovery is very necessary for both people and business. Each subject has his own trauma and needs an individual approach to solving his problem. It is important to use digital technologies as an accelerating factor in the renewal of a person’s mental and physical condition and a new breath in the business processes of enterprises.
Immersive technologies, which include augmented and virtual reality, are becoming a quick and high-quality “pill” for both the affected person and the affected business.
WHAT IS IMMERSION
The aggressor plunged Ukraine into war in one night, thereby creating a great tragedy for everyone and everyone personally. Ukraine’s task today is to win and recover as soon as possible. Part of the latter will be helped by another Immersion – immersive.
Immersive technologies are technologies of visual, auditory and partially tactile immersion of an individual in the created 3D world. In fact, it is an alternative space that is created with the help of 3D graphics and that a person sees in special virtual reality glasses or activates with his smartphone in augmented reality. A person can interact with the 3D elements of this alternative space. This contributes to the psychological recovery, physiological rehabilitation of individuals, and brings new customers to the business and, as a result, an increase in profits.
It sounds very difficult 😣
Let’s look at examples of the use of augmented and virtual reality technologies in post-war reconstruction separately for individuals and separately for businesses.
It is no news that businesses are more profitable when they integrate new trending technologies into their production and marketing strategies. On the other hand, technologies usually entail significant investments, the payback of which has a certain period. In the conditions of martial law, business in Ukraine suffers great losses. Part of the enterprise has closed, part continues to function half-way, and the third has seen a significant decrease in consumer demand and, as a result, income. At the same time, there is a trend of relocation and intensive entry of Ukrainian brands into international markets.
Thus, Ukrainian business is faced with the problem that, due to the lack of a stable flow of income, investment capacity is limited on the one hand, but on the other hand, the rapid implementation of the latest marketing and production innovations will lead to faster rates of business growth in the international arena in particular. Accordingly, it is necessary to find the optimal balance – investment costs and the efficiency of the implemented technology.
Augmented and virtual reality technologies can be useful in this business.
First, the modern consumer is an immersive consumer. He wants INTERACTION with the product. He wants to Immerse himself in the product. It is important for an immersive consumer to satisfy his needs with the help of immersive products. It is no longer enough for him to just look at the product in the picture in the online store to make a final purchase decision – he wants to try this washing machine at home in real size and shape in TWO CLICKS in 30 seconds.It is no longer enough for him to simply imagine what his future apartment will be like, looking at the floor plan, when you can put on virtual reality glasses and be in it – see the quality of the walls, the floor and admire the view from the window in 360.
Second, the integration of immersive technologies into marketing activities for brands will not immediately be measured by investments in the hundreds of thousands of dollars, which is a positive thing in the context of the current recession due to the war.
Accordingly, the role of immersive technologies in the form of augmented, virtual reality and 3D can become a significant incentive for business in the context of post-war reconstruction of production and marketing strategies.
Sounds difficult again 😣
Let’s take a look at specific examples of how Ukrainian businesses can use augmented and virtual reality technologies to strengthen their positions on the local and international market.
Today, more than ever, the digital world, games and the real world are closely connected. Immersiveness invites the consumer to mix the real world with elements of the game, to immerse himself in socio-economic processes and financial transactions in the digital environment. For a business, this means that it is necessary to look for opportunities to promote and sell its products not only on the shelves of a physical store or a classic Internet site, but also in the virtual space. Therefore, it is no longer enough for shoe manufacturers to sell 100 million pairs of sneakers per year in their retail chains. Marketing needs to and can be adjusted so that at least 1 million more pairs of sneakers are sold as NFTs for digital avatars in the metaverse.In 2021 alone, people spent at least $200 million on metaverse items. And the manufacturers of these items are real businessmen, not gamers or 3D designers.
This is a real opportunity for Ukrainian business, which lost markets as a result of the war.
Entering the international arena, the Ukrainian manufacturer of home goods faces a lot of competition, a fight for a new foreign consumer, problems with logistics, etc. According to data from Retail Customer Experience and BigCommerce, 61% of customers in America prefer online stores that offer the option of trying on products in augmented reality. Product pages that offer AR and 3D led to a 13% increase in average order size and a 21% increase in revenue.
That is, the Ukrainian manufacturer needs to IMMERSE the potential consumer in his product by setting up the site in such a way that the consumer can, in two clicks, put a table in front of him in his room in real size and shape, look at the quality of its texture and choose his color to match the renovation. All this is possible with the help of augmented reality technology, which allows you to make sure that the product reaches the consumer’s home before the moment of direct purchase, which significantly increases the probability of its future purchase.
In addition, as ARInsider writes, Shopify provides analytical data according to which the return of a product that was primarily tested by a consumer in augmented reality decreases by 40%. This is a solution to a very important “pain point” today for Ukrainian brands producing household goods, especially small and medium-sized businesses.
Investments in setting up such an option on 50+ product items will be in the range of $5,000-$15,000, which is economically beneficial for business.
Ukrainian clothing designers are among the most talented in the world. We see many world stars wearing our brand’s clothes. Today, in connection with military operations, consumer activity in the clothing market has dropped significantly, and designers need to enter international markets. It is necessary to go out as Ukrainians know how – creatively, brightly and with taste. Immersive technologies help in this again.
Ukrainian designers in social networks SnapChat, Instagram, Facebook can create an option of trying on clothes with the help of augmented reality. According to data from Deloitte Digital with Snap Inc, with the help of AR, information about the brand is absorbed twice as well, and 75% of the surveyed respondents noted that they are ready to pay more for a product that has the option of a high-quality 3D sample (try on) using augmented reality.
It is important to understand that for a brand, the creation of AR clothing fittings is mostly of an image nature, which increases the reach of the brand’s social networks, increases loyalty, increases the time of interaction with the brand’s content and opens the way to placing digital 3D versions of clothes in the virtual world (metaworld) in the form of NFT . And the complex of these factors makes it possible to increase visibility on the market, win over competitors and return to at least the pre-war position in terms of sales volumes.
Investment in setting up such an option on 10+ product items will be in the range of $3000-5000, which is economically beneficial for business.
Representatives of many segments of Ukrainian food producers are fighting for the international consumer. In this case, we are talking about producers of final consumption goods of food and beverages, not sellers of raw materials. It is very difficult for a Ukrainian brand to “break into” international retail markets with BTL promotions, merchandisers and other promotional activities to popularize the brand. In this case, non-standard immersive solutions from the field of 3D marketing are needed.
The goods of the Ukrainian brand on the shelves of international stores should speak for themselves with the help of augmented reality technology! The consumer scans the QR code, points to the label and it turns into interactive 3D content. It can be in the form of a video appeal from the business owner directly to his consumer, a 3D character (especially if it is a children’s audience), in the form of a 3D quest, a 3D consultant who provides instructions on how to use this product, etc.The most important thing is that due to this Immersion, the consumer increases the time of contact with the product by an average of 25-30% and, accordingly, the recognition and loyalty to the brand increases. This tool will help to effectively distinguish the Ukrainian product from international competitors and attract the attention of the consumer so that he pays attention to the brand and makes a purchase for the first time.
The investment in setting up such an option for one SKU will be in the range of $5,000-$10,000, which is economically beneficial for the business.
Another significant pain point for Ukrainian businesses that have production facilities on the territory of Ukraine and work with foreign clients is that the latter are “afraid” to cooperate with us due to military operations, even if the enterprise is located in a completely safe territory and meets its obligations. Partners have to see with their own eyes that the enterprise is safe, employees are at work, products are manufactured despite the war. Of course, today not all international partners and clients will be ready to visit Ukraine to see for themselves. That is why the Ukrainian business should, with the help of immersive virtual reality technology, transfer its potential client / partner to the territory of the enterprise and give the opportunity to be present there in order to feel confident that everything is functioning harmoniously.
For this, a 360 video for virtual reality is shot directly at the enterprise, integrated into a VR headset and sent to international partners.
Investments in setting up such an option will be in the range of $15,000-$20,000.
It is important to understand that immersive technologies help establish personalized communication between the brand and the consumer. This is now a very urgent problem for Ukrainian business both in the international arena and in the local market. It is important for an international consumer to “make friends” with Ukrainian brands, while for a local consumer, it is important for the brand to care and support him in these difficult times. Our company has experience in implementing more than 250 projects in this area and today actively helps Ukrainian businesses to integrate immersive technologies into their marketing and production strategies described in this article.
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