Well it's obviously a mock up but let's say there's actually a layer under the person as well. So let's say light activates the material on one side which is connected by a smartfiber to an opposite point on the bottom. The color of the surroundings on the bottom are then sent back to the first point via the smartfiber which then emits the color.

An incredibly miniaturized version of the famous Mercedes commercial:

http://www.youtube.com/watch?v=vWtcz9PMFHo

It doesn't sound like anything that's remotely cost effective today so I'd guess it's all hyperbole at this point as other commenters have said.