We are hearing about the Metaverse more than ever, and it presents us with a dynamic opportunity. The array of companies exploring Metaverse pop-up shops is diverse and significant. Consider the far- reaching sensation of the Gucci Garden in 2021 that saw over 20M visitors and had incredible success in the sale of NFT’s. The Gucci Dionysus Bag with Bee sold for 350,000 Robux, roughly $4,100 USD, more than the physical bag in their brick-and-mortar store. Most recently, the growing list of fashion categories is expanding quickly, and some unlikely companies are tapping in, like HBO, Fidelity, UPS, and JP Morgan to name a few.
Understanding your demographic is critical to a memorable Metaverse introduction approach: every hour per week your customer spends in the Metaverse presents new experiential opportunities.
Analysts predict that in 5 years, the consumer will spend 4 hours a day in the Metaverse, and Gen Z plans to spend more time than this and generation Alpha will grow up in the Metaverse. This will create higher demands for experiences, virtual products, NFT’s, payment methods and marketplaces. The numbers are compelling. NFT’s were a $25B market in 2021, OpenSea processes over $3B in revenue a month and Fortnite made over $5B in transaction fees alone from virtual goods.
This arena is evolving before our eyes with plenty of learning intel. Converse Conversion is transacting everywhere, the narrative is changing quickly and with every success story, there will be multiple failures. It is not clear what UPS will be delivering in the Metaverse or if affluent individuals and institutional investor clients of JP Morgan have even created their avatar yet, but the growth of the Meta-economy is here to stay.
"Every hour per week your customer spends in the Metaverse presents new experiential opportunities"
In fashion, the Direct to Avatar [D2A] is the next Direct to Consumer. For fashion brands, the skins are a way to create brand awareness in the digital world without having to create a fully immersive experience. Avatars are an extension of the consumer; this represents a continued opportunity for established companies dipping their toe in the Metaverse and for new brands beginning to explore this world. Interestingly, there are no logistical or production challenges - the approach is fully sustainable - and it is always in real time. Metaverse shops are open 24/7.
One key takeaway is to meet your audience where they are today. VansWorld and PC World (PacSun) are setting excellent examples in engaging their core customer in the Metaverse with NFT’s tied back to exclusive physical product available at their store locations. The intersection between physical and digital remains a key focus of profitability and engagement for retailers.
Adoption of the Metaverse is taking time, yet the Metawork force is growing fast with more industries on the way. Meta-health is on the forefront, and Meta-Societies are here with Seoul, South Korea being the first full digital twin to be built in the Metaverse by 2024 and the Meta-Economy doubling year over year.
If you haven’t logged on to one of the many platforms, do it now. Create your Avatar, be the better version of yourself and start to explore. Now is the time to enter this new world. Put your phone down, level up, and have fun.
