Digital Transformation Project: Team 26
Swatch, the iconic brand part of the Swatch Group Ltd., has been crucial for the Swiss watch industry due to the disruptive technology of the Quartz movement in 1970. Nowadays Swatch is still popular among a wide range of customers because of their fun and colorful designs. To secure a further growth Swatch has to keep innovating their products and their business model. Focusing on the eCommerce trend, the introduction of new technologies such an augmented reality application will be a solution for Swatch in order to attract more customers and improve the customer’s experience. The new 3D fitting technology will influence the product uncertainty and enhance the customer purchase journey.
What is 3D fitting?
This system will enable the customers to ‘try on’ the watches on virtual level. The customers no longer need to visit the physical stores to see how the watches look on their own wrists. Simply by presenting their wrist on front of the camera of their personal computer, smartphone or tablet, v-Swatch will display the watch on customer’s wrist as if they are wearing them in real life.
Advantages of the v-Swatch
This new technology offers several advantages to Swatch. Since this technology has been rarely used in the watch industry before, implementing 3D-watch fitting will maintain Swatch position as an innovative benchmark in the industry. v-Swatch enhances the convenience of online shopping experience within the trusted borders of your home. Because of the user-friendliness nature of the technology, it is easy for users to understand how it works and therefore the technology will be used frequently. The 3D-watch fitting technology enables users to view the watch in real time images from different angles. In addition with the 26 measurement of customer’s wrist, this technology provides the perfect advice about the products and therefore helps the consumers to make a proper choice about their potential purchase.
Although the new technology offers many benefits for Swatch, it still has flaws that could not be conquered. No matter how real time interacting the v-Swatch technology might be, it is still within the virtual framework. Therefore, real life interacting with the products is not possible, which could be the critical factor for customers to decide whether they are going to make the actual purchase or not.
An estimated increase of sales between 15%- 20% after implementing the new technology. Since the Swatch Group is determined to increase investments in marketing and sales activities, we believe this project should be financial feasible. On the technical aspect, the only hardware customers need is devices with built-in camera which are able to display images and motions on a screen. Since personal computers, smartphones or tablets are common devices to possess nowadays, it is technical feasible for the technology to reach the customers. Overall, this new augmented reality technology will reduce product uncertainty with help of OL and WOM. It enhances the image of the product in consumers’ point of view which can in turn lead to higher customer satisfaction, higher revenues and higher in-store service levels when probability of repurchases could be enhanced, whether online or in the physical stores. Although it is a large investment, we still recommend to implement this technology since v-Swatch will enhance the sales of watches and therefore add value to the company to maintain its position as innovative benchmarker within the watch industry.
Would you like to try the v-Swatch? Do you think this technology will contribute to Swatch’s revenues?
Potter, S. (2013) The History of Swatch.
http://watchnews.nawcc.org/the-history-of-swatch.html, 08 October 2015
Singh, B. (2015, 3 28). Taking eCommerce to the Next Level with Augmented Reality., from iamwire: http://www.iamwire.com/2015/03/eCommerce-level-augmented-reality/112915