visiq virtual "try on"
TRANSCRIPT
Meilan OuProduct Management 15
VisiQ Virtual “Try On”
Visualized Shopping Assistance Suite for Furniture & Home Decor E-Commerce – v.1
Objectives‣ Analytics shows a yearly growing trend on e-commerce globally‣ Generation X & Y like to shop online, but they seem reluctant or refuse to
purchase furniture online
VisiQ – Virtual “Try On”
E-commerce had aided in convenience and price reduction in many categories. It should aid a lot in furniture & home decor that has long tail distribution. How to solve the problems make shoppers hesitate to directly purchase online?
Digital experience for furniture shoppers
Target shoppers‣ Work full-time (time management)‣ Online-shopping savvy (pros vs. cons)‣ Live in middle-class neighborhood (lifestyle, budget)‣ Live in urban/suburban (lifestyle, online/B&M)‣ Have good taste in lifestyle/aesthetics (ideal pieces)
User research
Behaviors‣ 63.5% are replacing/upgrading an item, 26.5% are renovating a room or moving
to a new place‣ 65% are not sure what retailer/brand to purchase from, 18% know what retailer
but not brand‣ 67% of buyers who purchase in-store access online information‣ Reasons to buy online: Price > design > quality > convenience‣ Wish to have on online store: Free shipping/return > visuals/measurements >
curation > reviews‣ General priority: Style > material > durability/maintenance > size > colors
User research
Problems (online)‣ Cannot touch and feel it‣ Lack of clear visual display and technical details‣ Lack of effective reviews ‣ Hard to picture it with other pieces‣ Long list of results can be annoying
User research
VisiQ – Virtual “Try On”
What consumers like‣ Going green‣ Smaller profile‣ Multifunctional ‣ Customization‣ Outdoor furniture (add-on space)‣ Technology-driven
Style trend (as product design references)
What providers think‣ Smart one-size-fits-all solutions (economies of scale, modular)‣ Smart packaging to cut out the expense of stocking and delivery‣ Designers want web-based direct model to undercut the prices (~50%)
➢ Current retail: gross profit 40~50%, net profit 0~5% (average 2%)
Style trend (as product design references)
VisiQ – Virtual “Try On”
Apps available now
Current development
Houzz Like That Decor Show in Room Homestyler Cylindo
Current developmentApp Houzz Like That Decor Show In Room Homestyler HD Viewer/3D
Builder/Planner
Developer Houzz (Palo Alto) Superfish (Palo Alto) Augmented Pixels (Sunnyvale)
Autodesk Cylindo (Denmark)
Value proposition Platform for home improvement/remodeling ideas, and connecting users to professional services and products.
Visual search, algorithmically analyzes an image and delivers similar/identical images in real-time.
Augmented reality that creates a virtual showroom and enables experiments with your home furnishing.
Well developed visualization tool taking the guesswork out of interior decorating and design.
Builder-viewer-planner. One-stop-shop for all your visualization needs.
Platform Web and mobile Web and mobile Mobile Web and mobile Web and mobile
Visual dimension 1~2 (idea database) 2 (image search) 3 (augmented reality) 3 (design/visualization) 3 (design/visualization)
Strength * Huge database* Q&A community* Photos with product tagging (some)
* Easy and quick search * See products virtually in real space* Swipe to see different products* Individual branding (IKEA)* Also for property development and fashion retail
* Precise simulation* Design and visualize anywhere* Integration with design software (ex. Inventor?)
* Serious HD 3D* Co-creation* Design and visualize anywhere* Individual branding* Retail integration
Inconvenience * Long listings* Blocking tags* More for design ideas
* Need to find something good first
* Must be in the room* Need marker sheet* Brand first* No social sharing
* Better with empty room* Better for complete interior design
* Better for complete interior design
Why visualization needed‣ People are more likely to
➢ purchase pieces in great design ideas➢ purchase if they see 3D➢ purchase products that can be customized
‣ Sales reps' helper tool/B&M with limited showroom‣ The more you show (effectively), the more you sell (~250%)
Current development
While trying these apps another question came up to me. Do people really need the exact product? Will they want the same design but better quality or more economic options instead? Image search can help to achieve it. If there was more time I'd start another user research for this product design proposal. For this class project I'm sticking to the visualization suite.
Before moving to next section...
VisiQ – Virtual “Try On”
Problems tackled‣ Cannot touch and feel it‣ Lack of clear visual display and technical details‣ Lack of effective reviews ‣ Hard to picture it with other pieces (people are buying to replace or upgrade)‣ Long list of results can be annoying
Proposals
Augmented reality picture‣ See how the new piece fits into your room, real lived room‣ Fitting, blending and retouching the furniture into the picture
Proposals
360 reviews‣ View product and relevant reviews at the same time‣ Associate keywords with parts, auto abstract relevant reviews
User (shopper) experience core philosophy‣ Visualize it anywhere‣ Utilize 3D model more:
➢ More helpful visualization➢ See dimensions more easily➢ See relevant reviews more easily
‣ Easy sharing for social and discussion
Proposals
Initially for customizable one-size-fit-all sellers
Proposals
+ =
VisiQ – Virtual “Try On”
Personas & storyboards
Namiko
Violinist of City Orchestra wholives close tothe concert hall by herself
“Busy urban organized living”Namiko has been playing violin since 7. 25 years in classical music made her appreciate the elegant and harmonic lifestyle. Due to the busy schedule (performance and tutoring) and not having a car, she frequently shops online. Recently she found a modular cabinet line online. She likes the good value and customizability, and also wants to see a few configurations to know if any will best match her small urban apartment and existing shabby chic furniture. Size and style are really important to her. It will be great if she can decide without going to the physical showroom as the nearest one is still far away. But some previous experience made her worry about possible discrepancy on the product quality.
Goals‣ Find a cabinet will suit storage needs, fit into the limited space and match the style‣ Spend less effort on furniture hunting and more time relaxing at home
Problems or pains‣ Details are helpful but still cannot visualize for daily use and style coherence‣ Reading the long text-based reviews is time consuming and not effective enough‣ Cannot decide to buy and still browse around, too much effort too little gain
Personas & storyboards
Personas & storyboards
Lisa & Alex
• Married for 4 years• Live in suburb• Both work full-time • Expecting their
first baby
“He helps but she needs more help”Lisa and Alex moved into this townhouse in the tranquil residential suburb about 2 years ago. They both do about 30 miles train ride into city center for work. As they are expecting their first baby boy, they are transforming a small bedroom into a nursery. The last thing they need is a chest of drawers and they agreed to buy a modular design for future expansion when the kid grows up. Lisa is debating among a few custom finishes, but Alex has no preference. He cares more about his football games. Lisa wants to know more about other buyers' experiences and discuss with others before final purchase. Also she wants to reduce the risk to return as this is an online store. She knows Alex will be happy helping with assembling and arranging but she doesn't want Alex to waste his time if it turns out not to be a good fit.
Goals‣ Find a chest of drawers will suffice storage need, fit into the limited space and match the style‣ Know how others are preparing for growing family‣ Lower the risk of returning it
Problems or pains‣ Details are helpful but still cannot visualize the fit and use‣ Reading the long text-based reviews is time consuming and not effective enough‣ Not able to easily describe the designs and discuss with others for peace of mind
Personas & storyboards
VisiQ – Virtual “Try On”
Wireframes – AR picture
(Mobile is on the rise, but browser is still most used. I'm using mobile to help me focus on most essential elements.)
Wireframes – AR picture
Wireframes – AR picture
More possibly, they will take pictures without ceiling and side edges
Panorama Wide-angle Smart-phone Normal/35mm
Wireframes – AR picture
Swipe to see different configurations
Wireframes – AR picture
‣ Better customizing ability‣ Enable amateur designers‣ Models for more products‣ Visual recommendation‣ Multi-sided market (various
design/style consultancy)
Future possibilities
Wireframes – AR picture
‣ Built with 3D model, can embed multiple views of technical details
‣ Can share this on social media➢ Discuss with friends and families➢ Raise product awareness➢ Social platform target marketing
More than AR...
Wireframes – 360 reviews
Wireframes – 360 reviews
‣ More structured than raster images‣ Map review highlights with elements‣ Share quality 3D on social media
➢ Discuss with friends and families➢ Raise 3D awareness➢ Social platform target marketing
3D advantages
‣ Validated purchase‣ More social interaction‣ Supervised learning
Real in-room pictures
Wireframes – 360 reviews
Learning model
Reviewer uploaded pictures
Auto-retouching result
User flow – AR picture
https://www.lucidchart.com/documents/view/fcd99aac-7ba9-479a-a680-c5e8e4081cff
User flow – 360 review upload
https://www.lucidchart.com/documents/view/0a56559b-94fe-45ee-a6b8-d482de7bd28a
User flow – AR picture
https://www.lucidchart.com/documents/view/88890dd4-de20-428e-b3a1-0997e598eacc
VisiQ – Virtual “Try On”
Metrics – AR picture
Category User Status
Acquisition Initiate AR process
Acquisition Have environment setup
Activation Start viewing item(s)
Activation View item details
Retention Save AR picture
Referral Share AR picture
Referral New customer via shares
Revenue Purchase item(s)
Metrics – 360 reviews
Category User Status
Acquisition Initiate review process
Activation Scroll to see review summaries
Activation See review details
Retention Swipe to refresh reviews of the view
Retention Press-and-hold to refresh reviews of certain part
Referral Share 3D on social media
Revenue Purchase item(s)
VisiQ – Virtual “Try On”
Market size‣ Based on 2012 data‣ Furniture and home furnishings store sales: 97.39 billions
➢ Equal to per capita sales: $302➢ US population: 314.1 millions
‣ Casegoods counted for 18.01% of all furniture and home furnishing store sales‣ Online counted for 15% of all channels‣ Initial minimal online market size: 2.63 billions‣ Total minimal online market size: 14.61 billions
Market & pricing
Market & pricing – AR picture
Category User Status Pricing
Acquisition Initiate AR process Free
Acquisition Have environment setup $.05 each time
Activation Start viewing item(s) .03% per item
Activation View item details .01% each time
Retention Save AR picture .03% each save
Referral Share AR picture .05% each share
Referral New customer via shares .05% per new customer
Revenue Purchase item(s) 2% per item
Subscription charges● Monthly maintenance fee: $20 per month per account + $.50 per item● Monthly reporting fee (optional): $20 per month per account + $.10 per item● This is add-on in addition to regular listing. Monthly reporting is the service to provide insights/analytics from how consumers use AR.
Usage charges
(Each step is closer to sales or virality)
Revenue estimationPer capita sales was $302 in 2012. The minimal revenue via AR service for per capita sales will be .05 + .03% * 302 + 2% * 302 = $6.18. But initially the platform will be only available for online casegoods (18% of all categories, 15% online channel). So the adjusted minimal revenue per capita is 6.18 * 18% * 15% = $0.17. And in 2012 there were 314.1 million people in the US. So the initial revenue via AR service can be up to 53.4 millions.
I don't charge for initiating AR process because lots of consumers will want to try it out but may stop there. It's fair as I already ask for monthly fees. And there will be additional revenue collected from viewing details, saving pictures, sharing pictures and referrals.
Top 100 retails count for 70% of the market share. Each one of the top 100 (.7% share) clients can generate initial revenue of 373.8 thousands.
Market & pricing – AR picture
Market & pricing – 360 reviews
Subscription charges● Monthly maintenance fee: $10 per month per account + $.25 per item● Monthly reporting fee (optional): $10 per month per account + $.05 per item● This is add-on in addition to regular listing. Monthly reporting is the service to provide insights/analytics from how consumers use with
reviews.
Usage charges
Category User Status Pricing
Acquisition Initiate review process Free
Activation Scroll to see review summaries Free
Activation See review details Free
Retention Swipe to refresh review of the view .01% each refresh
Retention Press-and-hold to refresh reviews of certain part .01% each refresh
Referral Share 3D on social media .05% each share
Revenue Purchase item(s) 1% per item
(Each step is closer to sales or virality)
Revenue estimationPer capita sales was $302 in 2012. The minimal revenue via 360 reviews service for per capita sales will be 1% * 302 = $3. But initially the platform will be only available for online casegoods (18% of all categories, 15% online channel). So the adjusted minimal revenue per capita is 3 * 18% * 15% = $0.08. And in 2012 there were 314.1 million people in the US. So the initial revenue via 360 reviews service can be up to 25.13 millions.
I don't charge for basic usage because it's also available with regular subscription. It's fair as I already ask for monthly fees. And there will be additional revenue collected from viewing details.
Top 100 retails count for 70% of the market share. Each one of the top 100 (.7% share) clients can generate initial revenue of 175.91 thousands.
Market & pricing – 360 reviews
VisiQ – Virtual “Try On”
Business model – business model canvas
https://canvanizer.com/canvas/zIBTXgap9-U
Business model – lean canvas
https://canvanizer.com/canvas/JSuNaJ60A-4
Thank you!
The end
Meilan Ou https://www.linkedin.com/in/meilanou
And happy shopping for home :-)