Changing The Future:

Emerging Technologies That Will Blow

Customers Away
 PROFILE

HELLO…
WE’RE ZUGARA
Snapshot: We’re an interactive marketing agency with a passion for emerging
media and technologies
Services: Interactive Video, Social Media Marketing, Mobile Marketing,
Website/Application Development
AR Products: Webcam Social Shopper / Fashionista, Cannonballz, ZugSTAR
Founded: 2001
Location: Los Angeles / New York
Web: www.zugara.com
Blog: www.weareorganizedchaos.com
Facebook: www.facebook.com/zugara
YouTube: www.youtube.com/zugara
Twitter: www.twitter.com/zugara

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State of E-Commerce

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Online Retail Sales Continue to Rise…

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Web-Influenced Retail Sales Rise As Well…

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Peers Continue To Influence Purchase Decisions

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 Peers Continue To Influence Purchase Decisions

83% of online shoppers said they are interested in sharing information

about their purchases with people they know
(Manage Smarter, September 2009)

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 Peers Continue To Influence Purchase Decisions

74% are influenced by the opinions of others in their decision to

buy the product in the first place.
(Manage Smarter, September 2009)

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But What’s Missing?

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Shopping Offline Is An Emotional
and Social Experience

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Online…Not So Much

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The “consumer experience” has made very little
progress in the last 15 years
Amazon
1990’s

Amazon
2010

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And Continues To Face Obstacles Online

Catalyst To Drive
Purchase

45% of U.S. online

shoppers abandoned
shopping carts multiple
times over a span of
three weeks. (Paypal &
ComScore)

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We Can’t All Have Apple’s Loyalty

Conversion rates are

low, with the “gold
standard” being
between 2% and 3%

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Return To Sender…

The average return rate for online clothing retailers is

about 20% but goes as high as 50% for some. (Forrester
Research)
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What Are Brands Doing To Evolve
The E-Commerce Experience?

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E-Commerce Innovations – Social Media

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E-Commerce Innovations – Interactive Video
<- Zappos Interactive Product Videos

<- Sales increased from 6% to 30%

when product had video associated
with it

Samsung Live Video Customer & ->

Product Support

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 YouTube & Video Chat Generation
• 36% of Skype-Skype calls included
Video

• Chatroulette had 960,000 unique

U.S. visitors in February

Sources:
GigaOM – Skype By The Numbers. It’s Really Big
Comscore – Chatroullette Takes The College Crowd By Storm

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Worldwide Projected Webcam Growth

Markets for webcams at $1.8 billion in 2008 are anticipated to reach $3.2 billion by 2015,
growing in response to decreases in unit costs and increases.
(Wintergreen Research - Worldwide WebCam Market Shares, Strategies, and Forecasts, 2009-2015)

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What Does All This Add Up To?

A New Way For The Consumer To Interact With

Products And Brands Online

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E-Commerce & The Augmented
“Product” Experience

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SHOW OF HANDS:

How many of you

know what
Augmented Reality
is?

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My reaction to AR for the 1st time…

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 It’s when the
real world is
“augmented”
by computer
data.

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 AR is not
Virtual Reality
or
Second Life…

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 AR is the future of how we will
interact with digital information

VIEW INTERACT

ACCESS

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Usually shown as reality in popular
movies today…

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AR looks cool, but is anybody
actually using it?

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Major advertising and marketing
channels have started using AR

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Online, all the consumer needs:

Decent Computer

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Online, all the consumer needs:

Decent Computer Regular Web Cam

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Often times a marker (or glyph):

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And sometimes just an image:

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Some AR executions require:

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This is a barrier for the consumer

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So beyond all the hype, what’s
practical for AR in the here and
now?

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• Online AR currently most popular
• Largest Reach / Average Spec
• Adoption of Video Chat / Webcam Fueling Growth
• Flash-based AR

• Kiosk-based AR growing
• Limited Scale / Reach but Least Amount of Barriers
• Highest Spec Possibilities

• Mobile AR = not yet ready for primetime

• Limited Processing Power
• Will be Focal Point of AR in the future

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Augmented Reality Shopping – IKEA

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Augmented Reality Shopping – IKEA

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Augmented Reality Shopping – Ray-Ban

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Augmented Reality Shopping – Ray-Ban

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Augmented Reality Shopping - Tissot

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Augmented Reality Shopping - Tissot

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Augmented Reality Shopping - Lego

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Augmented Reality Shopping - Lego

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 How Do We
Use AR To
Enhance The
E-Commerce
Experience For
The
Consumer?

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Focus On
Utility

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 Integrate
Social Media

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No Software
Downloads
Online

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“Augmented Reality is a
solution looking for a
problem…”

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Problem: How Do We Bridge The Gap
Between Offline and Online Shopping
Offline Shopping Online Shopping
Social but time consuming Convenient but not social

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And Give Consumers That “At The Rack”
Experience, Online?

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Solution: Augmented Reality

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Fashionista – Integration of AR + Real-Time
Personalization

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Streaming Augmented Reality – Real-Time, Interactive
Video Chat for Online Shopping

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The Future?

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Future Of Shopping Will Be Digital

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“If I had asked people what they
wanted, they would have said
faster horses.”

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“If I had asked people what they
wanted, they would have said
faster horses.”
- Henry Ford

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 Thank You!
Matthew Szymczyk
CEO, Zugara
matt@zugara.com
twitter.com/kobrakai
facebook.com/Mhszymczyk
 Market Data
• In 2009, 154 million people in the U.S. bought something online, or 67% of the online population (4%
more than in 2008). (Forrester Research)
• 80% of Gen X and 71% of Gen Y internet users buy products online. (Pew Internet & American Life
Project)
• Amount people spent on clothing online: $13.6 Bil. (US Census)
• Amount people spent on clothing in store: $7.0 Bil.
• 83% of online shoppers said they are interested in sharing information about their purchases with people
they know, while 74% are influenced by the opinions of others in their decision to buy the product in the
first place. (Manage Smarter)
• Online social network users were three times more likely to trust their peers' opinions over advertising
when making purchase decisions. (Jupiter Research)
• B2B interactive marketing spending will climb to nearly $4.8 billion in 2014. (Forrester Research)

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The Future Of AR

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True Markerless Via An Average Webcam

More Immersive Experience Online / Kiosk

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Mobile Will Overcome:
•Hardware Issues
• GPS Accuracy
• Compass Accuracy
• No Front Facing Camera
•Processing Power Issues
•Issues Accessing API’s

To Become:
•Central touchpoint for AR

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Connected TVs Will Be A Powerful Medium

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“The best way to predict the
future is to invent it.”
- Alan Kay

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