The Rise of Immersive Retail
How AV is reshaping customer experiences

The Rise of Immersive Retail - How AV is reshaping customer experiences - AV Today Magazine

In a world where one can buy almost anything with a mere click, the experience in itself is becoming the true currency of retail. With competition from e-commerce intensifying, retail stores are no longer just points of sale; they are enticing and immersive environments that offer customers the best of both the digital and physical worlds. Drawing on expert insights from India and the Middle East, we examine this shift toward immersive retail and the role AV technologies play in shaping novel shopping experiences.

Venkatesh Sanjeeva, Founder, Managing Director, and CEO of Radiant Synage Pvt. Ltd., emphasizes this transformation, stating that retailers aspire to craft a heavenly experience that feels “as if angels were all around.” Retailers want to attract customers with rich content and unique themes that set their outlets apart from others.”

Andrew John - AV Today Magazine
Andrew John
Director at Integration One

Andrew John, Director at Integration One, attributes this shift towards immersive retail to increased affordability and awareness. Using Delhi as a prime example, he notes, “Today, Delhi has a plethora of shopping malls, and along with a large expat community and high disposable incomes, people have the means to go out and spend money on retail experiences.”

Turning our focus to the Middle East, Nita Odedra, Director of Strategy at Blue Rhine Industries in Dubai, highlights the trend of brands investing in regional and international flagship stores. “These stores are strategically placed in high-traffic, high-visibility locations like the iconic Dubai Mall. Brands realize that they still need to have these experiential retail spaces as part of a successful omnichannel strategy.”

Sonia Chauhan - AV Today Magazine
Sonia Chauhan
Director at Vison Technologies

Finally, Sonia Chauhan, Director at Vison Technologies, further emphasizes that the rise of online retail has pushed offline stores to innovate and take a step forward. “The whole idea of retail has now shifted towards creating a unique customer experience, which online retail cannot fully replicate. This shift is driving retailers to explore various AV technologies to engage and attract customers.”

Innovative use cases in retail

Andrews points out that visual engagement is more impactful than audio in retail settings. “For example, when you walk into a shopping mall, you’ll see that most people ignore announcements on the PA system, but are drawn to visuals with engaging content. It plants a seed in their mind and creates interest in exploring further,” he explains.

Innovative technologies like RFID ‘Pick ‘n’ Learn’ smart touchscreens and light sensors are becoming popular in modern retail. Explaining how these have been used at the ‘Under Armour’ store in Dubai, Nita says, “These smart functionalities help customers view product information by just picking up an item or comparing two items.” She also mentions RFID-equipped screens implemented at the ‘THAT Concept Store’ in Dubai, which allow shoppers to request clothes of different sizes or colors to be delivered to their fitting rooms. Another concept is the “butler’s drawer,” where sales assistants place items for customers to collect without human interaction. Nita also tells us about how Automatic Number Plate Recognition (ANPR) technology helps customers easily locate their parked cars in malls.

Sonia offers a unique perspective on the Indian market. “To differentiate the experience from online shopping, stores are using various technologies like virtual try-on software, interactive product displays, invisible speakers, digital shelves, transparent LED screens, and AI-powered product comparison screens.” She shares that retailers like Decathlon have introduced self-checkout stations, like the one in Gurgaon, where customers can scan barcodes, pay, and then leave.

“Technology has evolved so much that you now have flexible modules and even angular cabinets,” says Venkatesh. Discussing their collaboration with Kia Motors on the Kia Beat 360 experience center, he highlights the installation of an impressive semicircular video wall built on a hard-cased module.”

Discussing how retail organizations are experimenting with new concepts, Andrew cites the example of the DS Group, which has expanded into upscale food retail through its acquisition of Le Marche. “These stylish food halls feature hidden music systems and creative product displays,” he adds.

He continues, “If you walk into any of the well-established hypermarkets in Singapore, you’ll notice that the shopping experience is more informative. For example, the PA system announces messages like, “Check out the sale in the meat section!” Some stores even have DJs in a mini radio station atmosphere. “I haven’t seen this level of engagement in India yet, but I believe we are moving in that direction. Ultimately, we are embedding more technology into retail.”

Key Trends: What to watch for

Malls as leisure and entertainment hubs

“The Middle East has a thriving retail landscape,” says Nita, highlighting that malls are not just shopping centers; they’re family-centric leisure and entertainment hubs. “Within shop walls, you have plenty of entertainment options, alongside beautiful stores offering experiential, digital retail. There’s no concept of a high street here because it’s very hot, and people tend to spend six to eight hours in malls, resulting in high dwell times.” She also highlights the rise of phygital experiences, noting that most major malls in the region have mobile apps, which means the digital experience starts at home. “For example, if you want to buy a watch, you can easily locate retailers, engage with them through the app, and even earn points for purchases.”

The allure of Instagrammable screens

Social media is the perfect playground for brands to build customer connect, and retailers are not far behind in riding this trend. “People love Instagrammable screens,” says Nita, as she highlights a recent example of the longest digital screen in the Middle East – a 418-meter-long outdoor LED installation at the Dubai Mall promenade designed to keep the energy alive during the Dubai Fountain renovation.

Andrew adds, “Visuals are more impactful when it comes to attracting customers. So, retailers are creating Instagram corners, where customers can strike a pose and showcase the establishment in their posts.”

It’s creative content that captivates

“You can put all the whistles and bells into a retail outlet, but more often than not, it’s ultimately the content that drives customer engagement,” emphasizes Andrew. On the same note, Nita highlights the importance of keeping content fresh, creative, and engaging while also sharing that they create a lot of content for clients, including anamorphic visuals and 3D representations.

AI, data, and hyper-personalization

Nita discusses the use of AI in programmatic marketing, highlighting its role in advertising and merchandising through computer vision technology. “When a user approaches a screen, the system identifies their gender and age group, and then displays tailored content.” She adds that AI analyzes data from the store, including information from AV assets and customer dwell times, to “help us make smarter decisions about displaying more relevant and personalized content to customers on AV systems.”

Hyper-personalization also presents great potential within the omnichannel experience, says Nita. “To give you an example, when a customer uses the retailer’s app at the store, an omnichannel experience kicks in. If I’ve opted in, the system knows it’s me through facial recognition, and when I approach the screen, it greets me and displays products based on my previous browsing behavior.”

Sensory elements

Drawing on his global experience, Andrew shares that sensory elements can significantly enhance the retail environment. “The aroma of freshly baked bread, when you walk into the bakery section, or the rich scent of coffee, can create an enticing and inviting atmosphere for customers and have them leave with something,” he says, adding that retailers are just beginning to realize new innovative avenues like these to explore and amplify in-store customer experiences.

Immersive Augmented Reality (AR)

Nita highlights the potential for AR to transform in-store experiences, especially in smaller retail spaces, like kiosks in transit areas. These spaces would allow customers to browse and try on products virtually when they have a few minutes to spare, while also reducing reliance on sales assistants by leveraging data to offer customers personalized recommendations. Ultimately, spaces like these would make shopping more convenient while optimizing the use of retail spaces.

Greater Integration

Looking to the future, Nita says, “We will see more and more integration,” as omnichannel experiences gain momentum, with enhanced software-based personalization and improved integration between screens and inventory management systems.

Opportunities to unlock greater value

Drawing on his 30 years of experience in the Industry, Andrew discusses the gap between deploying technologies in retail spaces and the lack of effective execution and promotion to fully utilize these technologies to enhance the customer experience. “After investing heavily in advanced AV systems, how do we add value? When a project starts, there are a billion ideas, and everyone is excited, but if they don’t materialize as planned, it leads to lost opportunities,” he notes.

Another spot of opportunity is the potential to harness data. Nita explains that while most retailers analyze data in-house, there is room for improvement. “I don’t think that 95% of retailers are even using this data effectively, not even for personalization.”

Sonia observes that most new AV applications in retail are still relatively new to India, and there are challenges like limited availability and high costs of importing them from regions like Dubai. “People are asking for these applications, but very few are offering these solutions. We have a huge opportunity to make these technologies more accessible, especially in airport retail, high-end malls, and luxury stores in India.”

Bright spots

Nita highlights that mall operators in the Middle East follow specific signage guidelines and work with approved vendors to ensure a consistent and superior experience. “The malls guarantee that the quality of the screens meets standards, and their Retail Design and Delivery (RDD) team oversees the design approvals for all retailers. When a store opens, this team reviews the design and may also recommend partners based on quality requirements.”

She also emphasizes the focus on sustainability in places like Dubai, where government mandates promote sustainability goals. “Major mall operators are reducing energy consumption and setting aggressive targets for developers and operators. Hence, retailers are looking for sustainable products and solutions,” she says, emphasizing that they integrate green practices into manufacturing and daily operations to stay ahead of industry standards.

India has the most engaged audience and some of the best critics, says Venkatesh. “In other places, people often just take a fleeting glance at displays and then move on. However, in India, you’ll see customers standing captivated and engaged in front of video displays. They actually pay attention, and when they enter the store, they tend to purchase the products showcased, demonstrating a clear return on investment (ROI).”

He adds that customers in India often approach shopping as an experience. “Online shopping has its own share, but even today, you can go to any of the malls, and they’re all full, brimming with people. In India, shoppers want everything to look jazzy, colorful, and enchanting,” he says, adding that retailers understand this dynamic and go to great lengths to ensure customers feel special. “That’s the beauty of it.”