7 March 2025
In the second part of this series, we are briefly going to look at how Extended Reality (XR) can be used to commercialise a business’s IP, and how it can be used to reach a new demographic of consumers.
XR technology is transforming how companies interact with consumers, offering a dynamic way to commercialise intellectual property (IP) and reach new markets. As XR becomes more accessible and sophisticated, it presents a unique opportunity for businesses to engage their customers in immersive, interactive experiences that go far beyond traditional advertising and product showcases.
- Virtual Showrooms and Product Exploration
One of the most powerful ways companies can utilise XR is by creating virtual showrooms and product experiences. VR allows customers to experience products in an immersive 3D environment, even if they can’t physically interact with the items. For example, automotive brands like Audi and BMW have introduced VR test drives, where potential buyers can virtually explore and experience cars without leaving the comfort of their homes. This not only provides a new way to showcase their designs and features but also broadens the potential customer base by removing geographical limitations.
These experiences are further not limited to virtual reality headsets and can have a similar function, albeit less immersive, by being available on mobile devices.
Similarly, L’Oreal has taken advantage of augmented reality to create virtual makeup try-ons, allowing customers to experiment with products before purchasing. These experiences enhance customer engagement and allow companies to showcase their IP without the constraints of physical space. This trend has increasingly become more popular with clothing brands as well, where consumers are able to see how certain clothing items would look on them before buying it. While the user experience greatly benefits from this technology, brands can also gather valuable data on consumer preferences and behaviours.
- Licensing and Collaborations in VR Gaming and Experiences
Companies can also expand their IP’s reach by licensing it to XR game developers and experience creators. As VR gaming continues to grow, there’s increasing demand for well-known IPs to be integrated into immersive, interactive games.
But this opportunity is not exclusive to companies in the entertainment and gaming industry. Clothing brands, such as Nike, have been proactive in filing their trade marks for ‘virtual goods’, including for virtual footwear, clothing, headwear and sports equipment. Why, you ask? For the simple reason that people love wearing brand names, even in virtual reality.
As with most digital platforms, Meta allows you to create an avatar, which is the virtual rendition of yourself that appears in the virtual world. Naturally, these avatars can be kitted out with clothing, footwear, glasses, and jewellery. At first, Meta launched a virtual store whereby users could buy luxury clothing items from Balenciaga, Prada, and Thom Browne. In 2022, Meta partnered with DressX, the world’s largest digital-only fashion company, which allowed users to dress their avatars in DressX’s digital garments. You read that correctly: a fashion company that does not create a single piece of physical clothing.
As absurd as that sounds, these are all examples of how brands are successfully exploiting and commercialising their IP. These licensing opportunities not only extend the commercial value of the IP but also reach a wider, younger audience that may not traditionally engage with the brands in other formats and is proof that digital goods and wearables have real commercial value.
- Virtual Events and Conferences
In addition to product showcases, companies can use VR to host events, product launches, and virtual conferences, creating a new avenue for customer interaction. AltspaceVR, a VR social platform, enables businesses to host virtual events such as product launches, panel discussions, and networking opportunities. These events attract global audiences and offer a unique experience that traditional video calls or even in-person events can’t replicate.
Engaging with consumers in a virtual medium (not just in virtual reality, but in-game) has become more prevalent in the gaming industry as well. The fact that one can interact and reach a broader audience than is possible in-person, has shifted the way companies see the gaming industry. In the past, video games were brushed off as a childish pastime. Now, it’s a way for Travis Scott to perform live in front of 12 million people (if you know, you know).
- Enhanced Customer Support and Training
Another innovative use of XR (specifically augmented reality) is in customer support and employee training. By using XR, companies can offer customers hands-on experiences with their products or services in a safe, controlled environment. IKEA, for instance, uses AR in its IKEA Place app, which lets users place virtual furniture in their homes to see how it fits and looks before making a purchase. This technology allows customers to make more informed buying decisions, reducing uncertainty and enhancing the overall customer experience. It also gives IKEA a competitive edge, showcasing its tech-forward approach to improving the shopping process.
AR is also being used for employee training, especially in complex, and highly specialised industries, where training equipment is expensive or difficult to acquire. Closer to home, we have a great example of how AR is being utlised to train medical professionals. UWC’s Innovation Hub has designed a CHS Emergency Trolley that can be placed virtually in a user’s personal space. These trolleys are used to train medical professionals, but being extremely expensive and hard to come by, many medical professionals only saw one of these trolleys once their training has been completed. By creating the virtual trolley, the Innovation Hub has made it possible for medical professionals to be trained on a life-size replica, albeit in augmented reality.
Further, it is possible for companies to create immersive training programs that simulate real-world scenarios, allowing workers to practice without the risks associated with hands-on training. Lufthansa and Walmart are using VR to train staff in customer service, product handling, and even crisis management. This form of virtual training can be a powerful way to boost efficiency, safety, and overall performance, while simultaneously creating an avenue to monetize the underlying IP used to create these training modules.
- Enhancing Brand Loyalty and Engagement
Beyond product launches and events, XR can also help companies build brand loyalty and create deeper, more personal connections with their customers. For example, Les Mills uses XR to create personalised training and fitness experiences. Their XR Bodycombat allows users to receive training from globally renowned trainers from the comfort of their homes.
By integrating their IP, whether it’s their training technology, brand story, or product offerings, Les Mills is able to cultivate long-term customer engagement through XR.
Conclusion
The potential for XR to help companies commercialise their IP and reach new consumers is vast. By offering immersive experiences, licensing IP to VR game developers, hosting virtual events, and enhancing customer support and training, businesses can not only engage customers in innovative ways but also open up new revenue streams. As XR technology continues to evolve, the opportunities for companies to tap into this dynamic medium will only expand, providing fresh ways to showcase their IP and build lasting relationships with their consumers.
