[continue from 1st part of this article]
Part III Equipment
First, I want to point out that the Equipment here does NOT mean VR headset like HTC Vive, PSVR, or Oculus Rift. It refers to the VR peripheral equipment like Motion Chair, Omni Treadmill, VR Bicycle, etc.
In China offline VR experience store market, headset is dominated by HTC Vive now. Since PSVR still limits its supply, and Oculus Rift is not officially sold in China.
In terms of the VR experience brought by the equipment, the satisfaction rate is only 15%. It is less about the peripheral equipment more about the status quo of the whole industry. The enhancement of VR experience still has a long way to go. 2017 is possibly a critical year to test how extraordinary VR experience can be, and if it cannot meet public expectation, the prospect will be grim.
Currently, 92% people think peripheral equipments are too expensive; however, there are still massive purchasing needs, over 84% of store owners express such need. At this stage experience stores rely heavily on hardware equipment.
Novelty is the most important criteria in choosing peripheral equipment, Appearance ranks the second.
If the store owners compromise to the current situation, or they are unable to change it through individual power, peripheral equipments will gradually turned to disposable attractions, and thus force the manufacturers pursue more on novelty or appearance and less on steadiness or content.
This chart shows what kind of peripheral equipments these store owners have faith in.
Among the top ranking categories, except for the Children category has market influence, the others like Gunnery, Treadmills and Racings all emphasize senses and can easily attract people’s attention. Therefore if treadmills appear in the market, although the experience is barely satisfactory, the attention is already there.
Part IV Consumers
As the current software platform is rather messy, it is impossible to truly reveal the consumer group of experience stores. Therefore, the store owners who have face to face interaction with consumers have a right to speak.
In terms of consumer groups, family type is the top ranking group. However there aren’t many products suitable for all members of the family, therefore they have to be separated when they arrived at the store. Couples type rank the second. And it is noteworthy that solo consumers are much lesser than group consumers. Therefore this chart can prove that VR experience store are more suitable for group entertainment.
A cruel return customer chart, over 52% of the stores have only around 10%-20% return customers.
In terms of consumers, the major obstacle they have when experiencing the product is the price.
The cost in learning can be reduced or even eliminated if the service for the particular product can be improved. Motion sickness is out of control for store owners.
2017 will be a critical year for VR experience store market in China.
Following is my best scenario wishes:
- VR peripheral hardware drops to reasonable price
- Several killer games to attract returning customers
- Price per hour continue to drop for customers to play longer and more
- VR content provider to have a healthy profit from VR experience store market royalty share