Reimagining Retail with Metaverse

SPECIAL RETAIL UPDATES

Reimagining Retail with Metaverse

When I first read in the news that Facebook has changed their name to Meta, I dismissed it thinking that it is a PR stunt to escape the bad publicity it was receiving at the time. Timing-wise, perhaps it was true but the name change also reflected what else was happening around in the world. Today, the term ‘Meta’ or ‘Metaverse’ is a popular keyword. It is everywhere.

So, what is Metaverse?

Metaverse means shared virtual 3D worlds that are interactive, immersive and collaborative. Just as how our physical world is a collection of worlds that are interconnected in a space. One may think we are all connected via phones or computers, but the Metaverse is much more beyond being connected online with our devices. Imagine our world, planet Earth, mirrored in digital, where human profiles are avatars, office spaces, homes and everything else can be mirrored. Let me give you some examples to get the concept.

Imagine that you want to get a makeover and are looking at different hairstyles, wardrobe options and looks. You put on a VR goggle and walk into a virtual space where you can try out different outfits and looks. Then you can even see matching accessories on it. Obviously, you may not be able to smell perfumes or feel the texture of the clothes but you’ll get a rough idea of the new look. Will this experience help you decide on your new look? You have a business meeting with people from several countries, everyone puts on their goggles and enter a virtual meeting room. You can see everyone in the same place, talking, making expressions etc. You may argue that today Zoom also allows you to see participants but the Metaverse allows you to be in the same room with them. You do not have to look at different windows as you do now. What you may miss is the coffee, but you’ll have to drink it in your real world anyways. Similarly, the opportunities are endless be it travel, banking and even in the retail sector.

Now that you have an idea of what the Metaverse is and how it may improve (or impact) our lives, let’s zoom into the Retail industry and how brands are already leveraging the Metaverse.

1. Embracing Virtual Reality to Enhance Customer Experience

Sephora is a well-known brand for make-up products. Beauty products traditionally relied on their sales teams to drive revenue. However, in order to stay with the times, Sephora has adopted Virtual Reality (VR) to meet its customer’s needs digitally. Sephora’s mobile app allows users to try out products from home. The app uses facial recognition to allow customers to see how the products look on them.

With VR, retailers can simulate an immersive environment that customers wouldn’t otherwise experience online. The interactive 3D world provides a compelling real-time experience akin to real life. VR helps to reduce returns and improve the quality of products through instant feedback data.

2. Expanding Total Addressable Market

A whole new avenue for luxury brand marketing and sales has opened up through digital avatars. Luxury brands like Gucci, Louis Vuitton, Marc Jacobs and Valentino offer players to put their branded items on their avatars in games like Roblox and League of Legends. This early adoption is allowing luxury brands to expand their target audience to younger populations.

Gaming as an engagement tool has a huge potential in Metaverse. Retail brands like Hellmann’s partnered with the Animal Crossing game by Nintendo to create awareness around food wastage. Animal Crossing players can explore new islands and convert their food waste into real nutritious meals for people in need in the real world. Consumer brands like P&G have partnered with Animal Crossing game to create realistic skin types like cellulite, stretch marks, acne etc. through their My Skin, My Way program. With Metaverse, brands are able to run targeted brand communications programs to a specific target audience.

4. Engaging Audiences with AR

Proactive retail brands are leveraging Augmented Reality (AR) as a tool to engage their audiences in the remote world. Brands like IKEA, Walmart offer options to experience their products in AR mode. AR helps brands to enhance their customer’s in-store and online experience.

One way Toys R Us leveraged AR is through an in-store experience of a digital playground through the Play Chaser app. Kids can do things like visit a basketball station to shoot hoops via the swipe of a screen and compare scores with other players on a leaderboard.

AR can make it easier to shop online compared to in-store since shoppers can visualize the products in their actual spaces.

5. Brands and Non-Fungible Tokens

No talk about the Metaverse is complete without talking about Non-Fungible Tokens or NFTs. Brands are increasingly seen launching their NFTs as a possible all-new way of marketing. Non-fungible tokens are digital assets like bitcoin, only they’re unique and irreplaceable, like owning an original work of art online. Some NFTs hold monetary value, some can be worn digitally and others connect owners to communities.

Brands such as Nike, GAP, Crockpot, Taco Bell, Campbell’s and Twitter have leaped into NFTs and many others are following suit.

What is fascinating about NFTs is that they could be both a product and a marketing tool.

The product can be a digital asset that encapsulates some form of creativity or a moment in time. And for marketing, it can help overall brand building, promotional tool and also generate immediate awareness for a brand.

With so many possibilities for retail brands to communicate with their customers digitally, I think the Metaverse is here to stay. As a marketeer, I see umpteen opportunities for brands within the Metaverse. What do you think? I’d like to hear your thoughts at Surbhi@digitalGenie.co

Surbhi Dedhia

Founder & Director

Digital Genie

Surbhi is a seasoned marketer who loves to keep up with new technologies. Over her two decades of international work experience, Surbhi has supported many brands to leverage modern marketing techniques to bring valuable business results. Surbhi is also the host of the Making of a Thought Leader podcast, where she aims to encourage entrepreneurs and executives to build their thought leadership systematically. Subscribe to her podcast on your favourite podcast player or podcast.digitalgenie.co