Orchard Road to get a digital twin: What's needed for it to work?

Singapore's shopping district, Orchard Road, is reportedly getting a virtual replica in an attempt to get draw a younger crowd amidst moves towards digitalisation. To do this, Alteredverse, a firm that specialises in digital twin geospatial solutions, partnered the Singapore Land Authority (SLA) and the Institute of Technical Education (ITE) to create a virtual twin of Orchard Road. 

The virtual space will see carbon copies of the malls, shops and hotels along the 1km stretch between Wheelock Place to The Centrepoint for a start, according to The Straits Times in an interview with Alteredverse's chief executive Alvin Yap.

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The article added that the model is targeted at those aged between 18 to 40 to help them in their shopping decision-making processes as more go online to do their research before making a purchase. The project is reported looking to start with in-kind payments such as vouchers or free limited room stays from participating retailers and hotels to attract users to the physical buildings, and will take at least a year to mature. 

Alteredverse is hoping to get between 10,000 and 30,000 users to try out the virtual model by the year’s end, according to The Straits Times.  Alteredverse's potential Orchard Road model comes at an opportune time as more brands look to enhance the omnichannel experience for consumers and to drive both online and retail sales.

What is a digital twin and what's its potential?

In fact, according to Deloitte’s Tech Trends report in 2020, the global digital twinning market was worth US$3.8 billion in 2019 and is projected to reach US$35.8 billion in value by 2025. Much of that momentum derives from rapidly evolving simulation and modelling capabilities, better interoperability and internet of things (IoT) sensors, as well as more availability of tools and computing infrastructure.

Largely adopted by the industrial sector over the last 20 years, a digital twin is a virtual representation that closely resembles a physical object. It is created by equipping an object such as a wind turbine with sensors that capture data related to its performance. This data is then transmitted to a processing system, which updates the digital twin accordingly.

A typical digital twin needs to be comprised of the following ingredients: a physical subject that continuously generates real-time data while active or in operation, a digital replica 3D model of a physical subject, a continuous feed of data from a physical subject to a virtual twin, as well as a software platform that can integrate all relevant data and mirror a physical subject in real-time.

In fact, according to Jean-Francois Thery, head of growth, Publicis Communications Singapore, the digital twin concept packs a "powerful punch" for consumers, offering everything from ultra-personalised shopping recommendations to real-time events, parking, and store line updates.

However, he noted that the real challenge lies in balancing the irresistible, physical perks that draw people into stores with the digital perks that keep them engaged online.

"It’s all about making sure these elements work together, not against each other so that enjoying the perks of a digital twin doesn't just feel innovative—it feels completely natural," he said, adding that the goal is to weave digital enhancements seamlessly into the fabric of physical shopping, creating a compelling, unified experience that consumers love.

A futile attempt?

Saying that, not everyone is convinced if a digital twin is the right answer for Orchard Road in its attempt to lure the youth. According to Kelvin Koo, managing director and partner at MINISTRY, it might be difficult to attract younger shoppers who are already actively engaging and purchasing via TikTok shops and online marketplaces.

"A virtual Orchard Road may struggle to lure shoppers away from these established channels. We've seen similar dynamics with brands attempting to engage gamers in platforms such as Roblox and Fortnite, where the initial buzz often fades quickly," he said. 

True enough, the eCommerce market in Singapore is booming and only growing faster and stronger every year. In fact, a 2023 report by Google, Temasek and Bain & Company showed that despite global macroeconomic headwinds, SEA’s revenue from the digital economy is poised to hit $100 billion this year, growing 1.7x as fast as the region’s GMV. 

Saying that, Koo added that the novelty and excitement, combined with tactical and gamification strategies such as offering free items, could be enough to drive initial acquisition.

In order for it to succeed, Koo pointed out a few key factors that needed to be incorporated. For one, retailer involvement and brand collaborations are important.

"The virtual twin needs to host exclusive launches, virtual pop-up stores, and unique products. It's crucial that the virtual twin doesn't become a lesser alternative with limited products, retailer involvement, or events," he said. 

Secondly, there is a need for an integrated omni-channel experience. He noted that a seamless experience between the physical and virtual Orchard Road will be vital. For example, users could find something they like virtually, be enticed to visit the physical store to check out the product, then complete the purchase in the virtual twin and collect the product on the spot.

Agreeing with him, Wong Mei Wai, founder and CEO of APAC Global Advisory, explained that the challenge faced by Orchard Road goes back to the structure and design of the shopping belt which has not changed significantly to enhance the experience of shoppers.

"Aside from the retail and merchandising strategies across the malls in prime areas verses heartland ones, the differentiation between what is being sold in the prime shopping area isn't significant," she said, adding that while the efforts to bring experiential activations to malls does raise its awareness, this isn't integrated in addressing the transformation or rejuvenation that Orchard Road requires. She said:

While the young shop online and have different shopping habits requiring research, the omni-channel presence and experience is key.

Wong explained further that for the digital twin model to be sustainable, it cannot be a standalone project. Rather, the focus needs to be an integrated experience and holistic strategy of tourism, shopping mix and diversity that appeals to younger people as well as events which are relevant and well-marketed alongside merchandising strategies for it to succeed.

Too much of an online focus?

Saying that, some industry experts MARKETING-INTERACTIVE spoke to expressed concerns that driving youth online even more than they already are might be a problem. 

"In a world where we are getting highly digital, I wonder if this is the right direction in terms of investment. Don't we want our youth to be outdoors?" asked Nimesh Desai, CEO at VML Singapore. 

He added that instead, it might be better to create creative, unique, digital experience booths in Orchard Road itself.

"The question will be what the actual experience will be like," he said. "Will users need to have VR headsets? What is the monetisation plan? These are key questions to consider."

True enough, on its own, on a year-on-year basis, retail sales increased 8.4% in February 2024, following the 1.6% growth in January 2024, according to the Singapore Department of Statistics. 

Comparing the performance for the two-month period (January to February), retail
sales grew 4.7% in 2024 compared to 2023, it added. 

On a seasonally adjusted month-on-month basis, most industries recorded growths in sales in February 2024. Sales of furniture and household equipment, motor vehicles and computer and telecommunications equipment saw growths in sales of 16.6%, 12.5% and 11.4% respectively.

Conversely, the sales of food and alcohol and department stores fell 13.3% and 12.6% respectively, it said, adding that the increase could be attributed to the Chine New Year celebrations in February. 

To add create a digital twin and to try to push shopping that way then is a delicate task. However it is always good to try and innovate, said David Mayo, founder of ADNA.

"If it comes across as prescription fun or something your parents want you to do, it will not work. However, if it’s there to be discovered and for people to build and use - it’s probably got more of a chance," said Mayo.

That said, we live in a world of fads and no industry on the planet knows that better than retail. Good luck to them, they are doing the right thing.

Photo courtesy Visit Singapore

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