3D Visualization Company Chaos, Shares Its Visual Commerce Trends for 2024

Furniture World News Desk on 12/14/2023

In 2024, many retailers looking to shake up their traditional workflows are turning to the latest technologies. 

One of the technologies being explored/invested in is 3D visualization, with nearly two-thirds (60%) of furniture firms expanding their use of such technologies. Seventy percent (70%) of firms identified ‘revenue growth’ as a critical priority enabled by 3D visualization, alongside increased sales and reducing returns. 

Jostein Pedersen, VP Product – E-Commerce for Product, Production and Services at Chaos, has shared four predictions for 3D commerce in furniture retail for 2024. 

3D and AR are not just for online

“It’s obvious to see the benefits of using 3D product visualizations during the online shopping journey. But for many furniture retailers, the showroom is also a vital element of the experience which can be further enhanced. Space in any showroom is at a premium, so in the past furniture retailers have had to carefully select only a few models or color options that will be available to view IRL. 

“Over the past few years - especially during lockdowns - e-commerce has seen massive growth. But moving into 2024, we’ll see those online technologies bring enhanced experiences to blended online/in-store shopping. Some retailers like Wayfair have introduced new interactive elements in-store which use 3D product visualization. For example, screens where customers can visualize their chosen finish or color of a product, or even place it in a virtual room similar to their home.” 

According to a recent Forrester Consulting report: 

• Nearly two-thirds (60%) of furniture firms are expanding their use of visualization technologies
• 93% of furniture leaders rated 3D product visualization as very to extremely important for their current business strategy

Rising customer expectations meet rising costs 

“3D visualization tools are rapidly becoming industry standard, a status we’ll likely see cemented next year. Retailers are seeking to grow their brands in an increasingly competitive market, characterized by reduced consumer spending and growing expectations for unique retail experiences. In a world of shrinking retail margins, increasing conversions and reducing returns is therefore a top priority.

“Personalizing product imagery for an entire catalog across a growing number of shopping channels is a huge challenge. This is especially true in the furniture retail business, where customers need a range of product and lifestyle imagery to make remote purchase decisions with confidence. 3D visualization can help retailers to meet this customer expectation, without increasing their costs related to photography, studio time, or shipping samples in for photography. For example, outdoor furniture retailer Yardistry successfully doubled its ecommerce sales while reducing photography costs using Cylindo product visualization.”

• 56% of furniture organizations employing AI to automatically generate or modify visualization images

AI can help share the burden

“Like in many other industries, furniture retailers are excited about the potential of AI technologies to ‘work smarter, not harder’ with many firms already piloting or fully implementing AI in their workflows. AI tools are becoming an integral part of product and lifestyle imagery creation, automating manual tasks which don’t require human creativity such as image resizing, recolouring, or switching out lifestyle backdrops. 

“In 2024, we can expect to see furniture firms explore the potential of AI throughout the whole visualization process. AI will not only help to speed up repetitive tasks and drive insights based on customer data, but also help brands and retailers to generate content at scale. This will allow ecommerce and marketing professionals to focus more on overall business strategy and creative direction.”

• 42% of furniture companies use AI for real-time customization and adaptation of imagery

• 52% of furniture companies use AI tools for image recognition, classification, and tagging 

Scalability will be key 

“By embracing the power and scalability of cloud platforms, retailers can turn around massive volumes of assets quickly without the need for lots of additional resources. Once a master asset has been created, it can also be used in a range of marketing channels, such as Google Ad listings, display ads, and email newsletters. 3D visualization can therefore deliver experience improvements across an omnichannel retail operation. It’s little surprise that a majority of furniture firms think that 3D visualization will be critical to helping them extend their influence and brand reach over the next 12 months.” 

In October 2023, Chaos published a commissioned study conducted by Forrester Consulting on behalf of Chaos titled ‘Tech Trends Impacting the Furniture Industry: From AI to 3D Product Visualization’. The study found that nearly two-thirds (60%) of furniture firms are expanding their use of visualization technologies. A majority (68%) are allocating 10 to 25% of their budget towards adopting AI and 3D visualization technologies. 

Furniture firms identified some of the top benefits of 3D visualization technology as: 

• Improved customer experience, online or in-store (66%)
• Increased sales, online or in-store (62%)
• Increase customer engagement, online or in-store (52%)

Companies using Chaos’ visualization and rendering technologies to improve marketing workflows, customer experience, and sales include EQ3 and Wayfair. 

Note

The results are part of a study issued by Forrester and Chaos titled ‘Furniture Industry’s Next Wave Of Digital Innovation: 3D Visualization’. The study was commissioned by Chaos, whose product portfolio includes the 3D product visualization platform for commerce, Cylindo, which was  acquired by Chaos in April 2022.

Study methodology and sample 
Chaos commissioned this study to understand how furniture organizations can adapt to the digital landscape by embracing 3D product visualization to improve customer experience and drive e-commerce sales. The survey explored technology adoption, challenges, and the impact of these strategies on business outcomes. The survey also evaluated the furniture industry’s future preparedness and outlook in terms of digital transformation. To achieve these objectives, Forrester conducted an online survey with 190 decision makers responsible for product visualization at their organization.

About Chaos 
Chaos is one of the world’s largest 3D visualization companies, and for over 20 years has empowered architects, artists and designers to visualize anything they can imagine. Chaos offers intuitive and powerful workflows for creatives across the entire design spectrum, including architecture, engineering, construction, product design, manufacturing, and media and entertainment.

In 2022, Chaos merged with Enscape and acquired Cylindo. In 2023, Chaos acquired AXYZ design. The company's product portfolio includes V-Ray, a physically based renderer honored with an Academy Award and an Engineering Emmy; Enscape, a high-quality real-time rendering and virtual reality plugin; Corona, a high-performance photorealistic rendering engine; Cylindo, a 3D furniture product visualization platform for commerce; and anima, a 3D/4D animation software to add realistic people and crowds to visualizations.

Chaos has more than 700 employees and offices in 11 cities around the world. For more information, visit chaos.com, enscape3d.com, cylindo.com and axyz-design.com.