While the term ‘Metaverse’ is still in its emergence, the idea of getting involved has gained traction amongst numerous sectors and retail brands. It could be the next revolution for retailers if they use it correctly.
According to Forbes, retail evolution is very much in progress, with business investment in the metaverse doubling since 2021 and soaring above $120 billion in the first few months of 2022. Retailers who see the viability of the metaverse for their businesses have dived in the concept to create seamless virtual experiences to connect consumers and grow the brand. It is no wonder why companies are eager to get involved in a cutting edge technology with extremely vast potential.
Let’s look at big names in the industry who have, too, joined in the hype of the immersive virtual realm where the possibilities are seemingly endless.
Nike
At the forefront, Nike is one of the brands who have made extensive efforts to succeed in the metaverse. Nike claims that nearly 7 million consumers around the have visited Nikeland, its metaverse store, since its launch in late November 2021. Nikeland is constructed within Roblox, an online gaming platform with over 50 million active users daily. Aside from trying on Nike’s products virtually, the metaverse platform includes games such as dodgeball for users to participate in. Digital versions of Nike's latest drops are available in the land for users to dress their avatars with. At present it is free to access Nikeland.
Source: Nike
Nike went on to hold digital events where participants were able to interact with real celebrities. CEO and president of Nike John Donahoe shared how Lebron James visited Nikeland on Roblox during NBA All-Star week as an inspiration towards physical movement in play for the community. He added that players were coached by Lebron himself and participants were rewarded for physical gameplay with the ability to attain exclusive virtual products.
Source: Pro Game Guides
Donahoe established that Nike now regards Web3 ventures as a key revenue strategy. Furthermore in December 2021, Nike announced the acquisition of RTFKT, a leading virtual sneaker company. “Nike is the only brand in the world that shares the deep passion we all have for innovation, creativity and community, and we’re excited to grow our brand which was fully formed in the metaverse.” Benoit Pagotto, one of RTFKT’s co-founders commented. Nike also released its first virtual sneaker collection in April named Cryptokicks, containing 20,000 sneaker NFTs – one designed by artist Takashi Murakami was sold for a grand sum of $134,000.
For Nike, the logic behind their sneakers and NFTs are akin, whereby both are developed around scarcity and drops. For consumers, it revolves around belonging to a special community, having ownership status and showing it off. It is clear that Nike takes their innovation in the metaverse seriously and are taking extensive steps to advance their digital footprint.
Gucci
Luxury fashion house Gucci is another brand that joined Roblox’s metaverse. The brand boasts their new virtual location named Gucci Town consisting of an exhibition space, a digital fashion store and a cafe.
Source: The Verge
Players can purchase digital fashion items to outfit their Roblox avatars from the Gucci Shop, the most popular destination in Gucci Town. Virtual pieces offered at the store are individually made with Roblox Layered Clothing technology, a powerful feature that creates 3-dimensional clothing mimicking how a garment drapes and forms on a real body for avatars. The technology takes avatar combinatorial possibilities to the next level for players in the town.
Besides games and a virtual hangout cafe, the Vault Plaza is another place not to be missed. The Vault Plaza houses the newest collaborations and products from the Vault, an experimental concept space by Gucci. Executive vice president of new businesses at Gucci and CEO of Gucci Vault Nicolas Oudinot proclaimed that Gucci Town allows the brand to translate (Creative Director of Gucci) Alessandro Michele’s universe in unexpected ways, adding elements to the multidisciplinary and inclusive approach Gucci is now known for.
Source: Nuvo Magazine
Previously, virtual platform Gucci Garden ideated by Alessandro Michele had also been launched, representing the iconic Gucci Garden building in Florence. The inventive space features a boutique, museum exhibit, bookstore and even a Michelin starred restaurant. Gucci’s foray into the NFT space is nothing less impressive. A collaboration between Gucci and Superplastic, SuperGucci is a series of limited edition NFTs accessible on Gucci Vault and Opensea.
The Italian fashion label is fervently utilizing technology to build its community on the metaverse, targeting millennials and Gen Z who were raised in the digital era. It is safe to say that Gucci has a strong following in Web3 and will continue in their efforts to dominate the retail metaverse.
Dyson
British multinational company Dyson has launched a metaverse experience Dyson Demo VR for customers to virtually trial and test its products. The household appliance brand best known for its vacuum cleaners strives to create the most realistic VR experience by drawing on the real simulation and visualization technology which Dyson engineers and designers have been using for years in the prototype and development stages of design.
Dyson’s global e-commerce director Sean Newmarch added that improvements are constantly added to the experience and “eventually, you’ll be able to throw dust and debris on different floor types, try different vacuum cleaning attachments and visualize the potential pollution in your home - all without a physical Dyson product”.
Source: Dyson
The interactive virtual reality (VR) environment is accessible through Oculus and currently showcases mainly Dyson hair care accessory products. Having its reputation built around technologically sophisticated luxury home appliances, it is no surprise that Dyson has its sights set on succeeding in the metaverse. The plan is to develop an entire VR shopping experience with the option to have a Dyson expert join in live from their physical location, providing a fully immersive experience for Dyson shoppers.
“You will be able to explore the full range of products and colours we have available, how they work and see live pricing updates, all from within the VR experience.” says Newmarch. In the meantime, consumers can test out products like the Dyson supersonic hair dryer, Airwrap styler or V15 cordless detect vacuum via the virtual simulation.
Source: Dyson
For Dyson, the enhanced customer experience is in relation to their increasing focus on direct to consumer retail both on the high street and online. The brand is working closely with engineers on their retail innovations that enable customers to better understand which technology is right for them.
Retailers around the globe are making themselves known in the Web3 space and leveraging on the new age technology, are local brands doing the same?
Charles & Keith
Singaporean fashion brand Charles & Keith made its metaverse debut in the Metaverse Fashion Week (MVFW) 2022 held in Decentraland. Known for its women's footwear, handbag and accessories, the local retailer has over 600 stores worldwide and is the first Singaporean fashion label to accept Cryptocurrency as payment on its e-commerce website. The company partnered with licensed crypto payment platform TripleA and accepts Bitcoin, Ethereum and Tether at the moment.
Source: Charles & Keith
Charles & Keith welcomed the first 1000 avatars who visited the booth in MVFW with complimentary picks of the season – a Koa bag and Alex sandals wearables. Avatars were also led to view Charles & Keith’s Spring campaign video and try on digital wearables at the booth as though they were in an actual store. Buyers can then visit their online shop to purchase what their avatars were dressed in.
This initiative symbolizes the brand’s first movement into digital currencies and will take effect in Singapore, United States, Australia, Canada, UK, EU and Malaysia during the initial launch phase in the first half of 2022.
Iuiga
Singapore based e-commerce startup IUIGA recently celebrated its 5th year anniversary by launching its first NFT collection “Jellyverse’ from 16 August. This launch marks the home and lifestyle brand’s first entrance into the metaverse. IUIGA will be giving away its Jellyverse NFTs based on different tiers of amount spent by a customer. Customers who collected all three NFTs of the first tier will receive a collector’s special NFT. The collector’s special Jellyverse NFT then unlocks several benefits like cashbacks, discounts, gifts with purchase and exclusive invites to IUIGA events. The NFT collection is supported by AX Studio, a Singapore based tech unicorn Advance Intelligence Group.
Source: Alvinology Media
Sales have increased by 130% for the brand since its NFT launch with 60% of customers buying more to qualify for the NFT giveaway.
“Being an early adopter in digital assets like NFTs allows us to get a headstart in building a strategic, long-term business model around Web3 commerce. We’re only at the start of our journey but we’re already very excited about the potential of NFTs to build a stronger brand connection and relationship – especially with our Gen-Z customers” said Jaslyn Chan, Co-Founder and Chief Growth Officer of IUIGA.
The metaverse presents a giant opportunity for retailers to promote their brand and reach millions of active users. More brands are focusing on their digital offerings to open up new revenue streams and connect with customers beyond in-store visits. A cohesive experience leads to higher engagement accompanied by greater sales – which is what the metaverse does and what the retail sector is looking for.
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