Metaverse and its potential for retail and consumer brands (Part-1)

Many brands are exploring interest in Metaverse and trying to get an understanding of the space. I believe investing and dipping toes is one of the most important decisions you will make as a brand to get ahead in 2022 before it becomes a rage in the next 1-2 years. I share my views what Metaverse and NFTs can do for consumer brands, including use cases that can be tried right away.

Since the announcement of Facebook changing its name to Meta; mainstream media and social outlets are flooded with “Metaverse” articles. However, the concept is not so new; Crypto Twitter and Reddit forums have been discussing metaverse for quite some time. Decentraland was already a billion+ market cap before the Facebook announcement. The term was introduced way back in 1991 novel Avalance. There is a lot of definitions in media that can be confusing. So I recommend What is Metaverse or Meta-Universe, the Connection With AI, Blockchain, AR/VR, and Crypto World article for a good conceptual primer.

The other concept that has created a huge buzz nowadays is NFT. The “Non Fungible Tokens”. It's a potentially game-changing innovation from blockchain tech. that gives creators, brands, and investors uncontested ownership of a unique item; typically a digital asset like pictures, music, video etc.

What is an NFT?

Let us try to understand one important blockchain fundamental property i.e. “immutability”. It means the properties of the object cannot be changed. From a first principle understanding: Any data that is stored on a block cannot be edited; the next state of the system needs to be stored in the following blocks maintaining a 100% verifiable tracking from previous blocks; thus making it block-chain.

In this context; NFT is not just a digital object but along with the object one also stores its creator, current and all previous owners; prices and technical platform where it exists. Metadata about the object can also be stored. This is when a digital object converts into a digital asset.

A lot of monetary resources as well as technology and creative talent are moving towards crypto and metaverse in the last few months and the trend will likely continue for the next few years. This will ensure mass adoption of the next wave of the internet.

Today’s state of metaverse and NFTs is similar to the 90s internet when physical catalog pictures were put in online to call it a website. Otherwise known as skeuomorphic age when concepts of traditional internet are being copied into new platform as it is. This will evolve further with much more innovative ways and possibly new FANGs are yet to be formed.

This will undoubtedly have a lot of impact on consumer brands, fashion, and retailers. Brands will evolve just like they evolved for digital commerce and marketing in the last 20 years; the next decade of evolution to be on metaverse and web3.

Below are a few use cases I believe we should see in the near future as in 12–24 months horizon.

1. NFTs as a branding strategy
2. Proof of ownership
3. Phygital Commerce
4. Accept Crypto payments
5. Personalization and analytics
6. Build Metaverse store

Next part of this series, I will discuss details for each use case. Stay tuned…