Network connectivity remains big challenge as e-commerce, FMCG go digital

Experts say AR/VR tech has yet to mature; also, immersive experiences with 360° video applications require a lot of data

With India pushing towards 5G adoption, e-commerce and fast-moving consumer goods (FMCG) firms are increasingly turning to more cutting-edge digital solutions for improving their customer experience.

Last month, Flipkart became one of the biggest names to enter the metaverse space, with the launch of Flipverse. According to the FireDrop website — Flipkart’s Web 3 platform — its pilot run, which was live for a week from October 17-23, saw people across 1,500 cities shop virtually, with 300-500 users streaming the virtual reality (VR) space onto their phones every minute.

Barnali Roy, a young IT professional from Kolkata, was one such user. “I wasn’t planning to buy anything. Nor did I use VR-headsets; I accessed FireDrop through my smartphone. The sheer curiosity of experiencing 3D and VR-based stores for brands like Puma, Noise, and others, is why I signed up for Flipkart’s new metaverse,” she says.

Companies are flocking to capitalise on the rise in digital footfalls brought about by such instances of “sheer curiosity.” VR and Metaverse-based start-ups like KiksAR and xperie.nz specialise in providing consumer-experience solutions for online shopping and ordering platforms. KiksAR, for instance, creates and hosts virtual stores of fashion retail brands on the metaverse platform or on the web/App, where shoppers can create their own avatars, walk around the virtual store, and try on products they may like.

It caters to online marketplaces of nearly eighty brands in 15 countries across fashion categories that include eyewear, shoes, jewelry etc., including Titan Eyeplus and US-based Signet Jewellers. Similarly, Xperie.nz provides a “try before buy” offline solution for shopping online, through a VR/AR experience.

Mahesh Makhija, Technology Consulting Leader at EY India, however, points out that AR/VR technologies are currently at a very nascent stage. “There is yet to evolve an app that will enable the use of this technology at a scale beyond gaming. In an e-commerce context, there is a potential to make consumers explore a product catalog in 3D immersive content – however, there are many challenges. Headsets need to be lighter, more comfortable for extended use and with extended battery life and cheaper for adoption at scale.”

Moreover, immersive experiences with 360° video applications like the one offered by Flipverse, require a lot of data. A low to standard resolution (below or at 720p) 360° experience requires at least 25 Mbps for streaming while for higher resolutions, comparable to HD TV, the requirement jumps to 80 to 100 Mbps. The propagation of metaverse-centred services for e-commerce will also require higher computing power.

As per FMCG industry experts, the pandemic has accelerated the rise in transactions on e-commerce platforms. And to cater to these growing consumer needs, FMCG majors like Nestlé, Dabur, and HUL are taking a different approach to digitisation. Nestlé India has leveraged the power of data and analytics through platforms such as Maggi.in and MyNestle.in (a direct-to-consumer platform) where the company is sharing recipes and information on nutrition and immunity.

Hindustan Unilever Limited (HUL) has launched similar direct-to-consumer (D2C) platforms for their brands like Lakme, Love Beauty & Planet, Simple, and Dermalogica. Shikhar – their e-Business to Business (e-B2B) app — also helps retailers track and place orders and has reached more than 9.5 lakh outlets.

Digitisation in the production, logistics and distribution channels is helping consumer durable companies to deliver services efficiently. Even as digitisation is fast becoming the mantra for consumer ease among online marketplaces, industry experts have highlighted the need for better network connectivity in order to unlock the full potential of the sector.

Flipkart acknowledged the challenges of catering some of its higher-end tech solutions to tier-3 and tier-4 cities. “While the first 100 million customers of e-commerce come from metros, the next 500 million are usually from tier-3 and beyond cities,” its spokesperson said. For these consumers, Flipkart is looking to increase accessibility to their app by offering 11 vernacular language interfaces including Hindi, Marathi, Tamil, Assamese, and Bengali. The Indian e-commerce platform translated over 5.4 million words for each interface and has also introduced machine translation of words from English to Hindi for user-generated content such as product reviews, Q&As, conversations via chatbots etc.

At the production end, food major Dabur has taken the lead. Dabur CEO Mohit Malhotra says, the company has "deployed 3D modelling and digital twinning to build its plant in its new greenfield manufacturing unit in Madhya Pradesh, last year. Digital solutions are also used for preventive maintenance schedule, downtime analysis, asset cases, and health management to ensure smooth functioning."

Flipkart launches ‘Flipverse’ a virtual shopping experience for its app users

Companies offering immersive experiences with  360° video applications

Social media platforms teaming up with e-commerce platforms

Network connection issues loom over tier 3 and tier 4 cities

Digitisation in all forms of channels including production, logistics & supply

Dabur adopts 3D modeling and digital twinning dor factory construction

Snapchat also teamed up with Amazon to give its users a virtual try-on experience