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VisiQ Virtual "Try On"
- 1. Meilan Ou Product Management 15 VisiQ Virtual Try On Visualized Shopping Assistance Suite for Furniture & Home Decor E-Commerce v.1
- 2. 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?
- 3. Digital experience for furniture shoppers
- 4. 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
- 5. 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
- 6. 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
- 7. VisiQ Virtual Try On
- 8. What consumers like Going green Smaller profile Multifunctional Customization Outdoor furniture (add-on space) Technology-driven Style trend (as product design references)
- 9. 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)
- 10. VisiQ Virtual Try On
- 11. Apps available now Current development Houzz Like That Decor Show in Room Homestyler Cylindo
- 12. Current development App 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
- 13. 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
- 14. 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...
- 15. VisiQ Virtual Try On
- 16. 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
- 17. 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
- 18. 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
- 19. Initially for customizable one-size-fit-all sellers Proposals + =
- 20. VisiQ Virtual Try On
- 21. Personas & storyboards Namiko Violinist of City Orchestra who lives close to the 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
- 23. 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
- 25. VisiQ Virtual Try On
- 26. 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.)
- 27. Wireframes AR picture
- 28. Wireframes AR picture More possibly, they will take pictures without ceiling and side edges Panorama Wide-angle Smart-phone Normal/35mm
- 29. Wireframes AR picture Swipe to see different configurations
- 30. Wireframes AR picture Better customizing ability Enable amateur designers Models for more products Visual recommendation Multi-sided market (various design/style consultancy) Future possibilities
- 31. 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...
- 32. Wireframes 360 reviews
- 33. 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
- 34. Wireframes 360 reviews Learning model Reviewer uploaded pictures Auto-retouching result
- 35. User flow AR picture https://www.lucidchart.com/documents/view/fcd99aac-7ba9-479a-a680-c5e8e4081cff
- 36. User flow 360 review upload https://www.lucidchart.com/documents/view/0a56559b-94fe-45ee-a6b8-d482de7bd28a
- 37. User flow AR picture https://www.lucidchart.com/documents/view/88890dd4-de20-428e-b3a1-0997e598eacc
- 38. VisiQ Virtual Try On
- 39. 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)
- 40. 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)
- 41. VisiQ Virtual Try On
- 42. 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
- 43. 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)
- 44. Revenue estimation Per 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
- 45. 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)
- 46. Revenue estimation Per 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
- 47. VisiQ Virtual Try On
- 48. Business model business model canvas https://canvanizer.com/canvas/zIBTXgap9-U
- 49. Business model lean canvas https://canvanizer.com/canvas/JSuNaJ60A-4
- 50. Thank you! The end Meilan Ou https://www.linkedin.com/in/meilanou And happy shopping for home :-)