Using Virtual Reality To Create Real-World Solutions
Virtual reality (VR) technology is revolutionizing industries, from enabling homebuyers to take immersive property tours to helping surgeons practice life-saving procedures in risk-free environments. In retail, VR is proving to be a powerful tool, providing private brands with the insights needed to help them develop packaging designs and retail strategies that break through on shelf, resonate with consumers, and boost performance.
With 15 years of experience collaborating with major retailers and consumer goods companies, I’ve seen firsthand how VR-enabled research has changed the game for private brands, replacing physical store mock-ups with a complete virtual environment that can bring every part of the store, from the deli counter to the frozen aisle, to life.
In this way, VR allows retailers to create immersive, true-to-life shopping experiences where they can test everything from packaging design and shelf placement to pricing and new products. The ability to test a variety of different scenarios, switching from one shelf set to another concept at the click of a button, is very powerful.
Testing In A Virtual Store Environment
For many of our clients, consumer research is the main reason for using VR technology, particularly when it comes to testing new innovation concepts or redesigned packaging ideas. We run VR studies, during which participants use headsets to navigate a virtual store and “shop” from a shelf-set of products, simulating a real-life retail experience. As they are shopping, they share their reactions in moderated discussions. This approach has been particularly impactful for private brands, which must work hard to stand out in competitive categories dominated by well-established national brands.
To give an example, I recently worked on a project with a private brand canned goods brand that wanted clear insights on which designs would disrupt and motivate purchase. We used VR technology to test multiple concepts with two consumer groups: loyal shoppers and growth target shoppers. This approach helped us identify the packaging elements that resonated most with shoppers and why, which enabled us to refine the designs to improve shelf impact.
These virtual shelf studies also allow brands to see their products in context. Packaging designs often look different on a computer screen or in hand than they do on a shelf among competitors. VR enables private brands to identify potential weaknesses and validate their designs before committing to costly production runs. It gives the retailer the ability to experiment with products on the planogram and create the ideal set.
Driving Retailer Buy-In With Data-Backed Insights
Beyond optimizing design, VR-enabled research equips private brands with compelling data to secure retailer support. Retailers increasingly expect private-label products to demonstrate strong consumer appeal and sales potential. Insights from VR studies provide private brands with a competitive edge, showcasing evidence of shopper engagement and preference.
As private brands evolve from cost-effective alternatives to premium options, research that combines VR with quantitative methods is particularly effective at telling an insightful data-driven story to retailers. This goes beyond product development. It informs merchandising and marketing strategies, helping private brands establish themselves as category leaders.
In addition to figuring out which products and innovations to launch, VR can also be used to meet internal needs. Whether it's used for sales training or guiding employees on what the vision for promotions in the store should be, the tool has so much flexibility. Plus, retailers want to move fast and get things on shelf. Being able to test multiple concepts or scenarios in a virtual environment and share that with internal stakeholders before allocating a budget is very valuable.
Building A Holistic Consumer Understanding
VR research is most effective when integrated with quantitative methods, such as surveys and purchasing data analysis. For example, a grocery chain might use VR to test private-brand snack packaging in a virtual store and then validate findings through broader consumer surveys. This combination creates a holistic understanding of the customer journey, enabling brands to fine-tune product positioning and marketing messages.
VR technology has also enhanced the design process itself. At SGK and Equator, we have made VR headsets available to our team, so they can utilize them throughout the creative process. Being able to visualize concepts on shelf before client presentations helps us optimize designs for disruptive shelf impact, making our work more breakthrough from the start.
The Competitive Edge For Private Brands
Private brands such as Target's Good & Gather and Walmart's Great Value are thriving. VR-enabled research offers an opportunity to stay ahead of trends. These tools allow private brands to:
• Experiment with multiple design variations efficiently.
• Uncover purchasing drivers specific to their target audience.
• Develop products and marketing strategies that align with shopper expectations.
As private brands increasingly turn to VR, they gain nuanced insights into shopper behavior and purchasing decisions, transforming research into actionable strategies. This approach not only levels the playing field with national brands but also establishes store brands as innovation leaders, redefining the future of retail.
Taking VR Technology To The Next Level
Looking ahead, it’s likely that VR technology will fundamentally transform how private brands develop and launch products. As VR systems become more sophisticated and accessible, we could see retailers creating digital twins of their entire store network, enabling them to test regional variations in packaging and merchandising strategies simultaneously across different demographics and markets. We could even see VR technology integrated with neurological monitoring to provide deeper insights into unconscious consumer behaviors and preferences.
Ultimately, as consumers become more demanding and the retail landscape more competitive, private brands that embrace VR technology will be better positioned to innovate quickly, reduce costly mistakes, and deliver products that truly resonate with their target audience.
Caroline Kim is a Strategy & Consumer Insights Specialist at SGK and Equator.
