Nextech AR Solutions, a leading firm specialising in augmented reality (AR) services, announced on Wednesday it had inked several deals for modelling 3D content for eCommerce platforms.
The agreement will lead to a further 400 3D models along with 1,500 announced the previous week, which will provide the Canadian company with recurring revenues and greater use cases for its ARitize 3D and computer-aided design (CAD) technologies.
Nextech charges customers recurring monthly fees from $10 to $50 via a 12-month auto-renewing contract, it said in a statement, adding its business model has led to strong and sustainable growth despite just launching in the fourth quarter (Q4) of 2021.
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Clients such as Habitt, Surplus Furniture & Mattress Warehouse, and others have signed up for the deal to showcase their products in real-time, allowing companies to avoid hefty eCommerce product returns.
According to Nextech, quoting Shopify figures, such returns cost businesses $1.47 trillion each year. Nextech’s 3D content solutions could potentially cut returns by up to 40 percent, or around $600 billion USD, by allowing customers to test out furniture at home before purchasing, it added in a statement.
The Vancouver-based firm has provided content for major retailers such as Kmart Australia, Kohls, Maple Leaf Auctions, Art Millwork Design, Pier 1, Artography Ltd, Eden Gallery, and many others.
Evan Gappelberg, Chief Executive for Nextech AR, said he believed 3D models were a “must-have” in the current and future retail market, where it could become “increasingly difficult and eventually impossible” for firms to compete online without such 3D solutions and higher competition.
Firms adopting 3D content would receive “a competitive edge” in current markets, which have seen positive and challenging activities.
He continued, stating,
“What’s ultimately pushing ecommerce leaders to move toward 3D models is the bottom line impact of profitability or ROI. Due to a high ROI we’re seeing a rapid market adoption, which is evident through our consistent flow of ARitize 3D deal signings across various industries as reported here”
Several companies and entities signing up for the deal included Cheech and Chong’s Takeout, Kotuiko, Lighting Plus, Salamander Paddle Gear, Himibike, Never Summer, Source for Sports, and dozens others,
The news comes after Nextech AR earned a massive deal with Genuine Parts Company in late April to create 3D-modelled automotive parts using the former’s ARitize 2D-to-3D asset conversion studio.
The enterprise also rebranded as a Metaverse firm amid its 3D studio launch, just months after Meta Plaforms pivoted to the spatial communications platform in October last year, triggering an unprecedented number of firms to shift focus and compete for the next generation of XR solutions.
