From Beta to Meta — The Metaverse and the affect on retail
There may be no consumer technology platform that is driving more debate than the ‘metaverse’. The metaverse — is defined as a parallel reality consisting of connected worlds brought to life by technologies including augmented and virtual reality. The metaverse is an always-on virtual world where people can work, play, and shop; part-augmented part-reality. Whilst a relatively new concept, forecasters predict the metaverse market will be worth US $800bn by 2024.
Forecasters are predicting that retailers will play a pivotal role in financing the metaverse. The metaverse is designed to break free from the current physical-form stores and move to the best digital shopping experience of the future. Virtual festivals, showrooms and flagships will create more compelling online experiences. This will include personalised brandscapes and desktop-accessible immersion which will create new rules of engagement.
In June 2021, Facebook CEO Mark Zuckerberg announced it was changing its company name to Meta, signaling its ambitions beyond social media. “There are going to be new ways of interacting with your devices that are more natural, instead of typing, you will be able to gesture or interact…this will be giving you a sense of presence in the new experiences you are having and the people you are with,” says Mark Zuckerberg unveiling his company vision.
Whilst Facebook has tried to claim the territory with a rebrand, it is important to highlight that the metaverse is a vision that spans many companies across the industry.
Is it important to embrace the opportunities of the metaverse for retailers or fear the risk of being left behind? These are the critical questions for retailers to ask before diving into the metaverse.
Virtual festivals, showrooms and flagships will create more compelling online experiences. This will include personalised brandscapes and desktop-connected immersion which will create new rules of engagement.
Whats in it for retailers? Who’s leading the pack?
Retail brands are beginning to dip their toe into the virtual water in the metaverse. In 2021, Samsung unveiled their virtual store Samsung 837X in the Decentraland platform.
Gucci launched its Garden Experience in Roblox, the online multiplayer platform popular with children and teens. Gucci’s most expensive digital accessory — a Queen Bee Dionysus bag — traded for $4,100 (AED 15,100), which is $500 (AED 1,800) more than its physical product Gucci equivalent.
Nike filed a number trademark applications in November with plans to sell virtual branded sneakers and apparel. In 2021 it bought the virtual sneaker company RTFKT (pronounced “artifact”) for an undisclosed amount.
What this means for brands?
There is no doubt that more immersive and engaging real-feeling experiences are the next logical evolution of the shopping experience. However will transactions only be digital, or will customers be able to buy real-world services and products too? What will their in-store experience be within the metaverse and how will it connect to the brand’s existing channels?
The only way for retailers and shopping centres to survive and succeed in this new world is to transform into a hyper-automated business, embracing a hyper-automation strategy and a fully integrated business. The jury is out for retailers and shopping centres to connect the dots between journeys, stores and operations and there’s no time to waste. No matter how you feel about the metaverse, you won’t be able to ignore the chatter in 2022.
