The Mall of Tomorrow is Virtual
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Shopping is one of the cornerstones of our social life and culture. And technology is increasingly becoming an essential part of it. The fluorescent-lit indoor shopping malls are soon to become the days of the past. With the dawn of the metaverse, the future of the retail industry is about to take a U-turn and get a stark makeover.?
The Metaverse is a shared virtual space akin to the reflection of the real world. With full immersion and unparalleled access, the metaverse is here to offer an out-of-this-world shopping experience to its users. Virtual shopping is a real-time experience where customers can browse an extensive collection of products from retailers in a more immersive and personalized approach.
Now in 2022, Metaverse is taking the next step to being just an immaculate abstract. If you want to know how metaverse is getting ready to change the world then keep on reading…
What about the current eCommerce platforms?
Online eCommerce platforms like Amazon and eBay can be entitled virtual stores. But as technology evolves, so does the definition of a virtual store.?
The current e-commerce experience is going to change. Technology is going to make it more natural, engaging, immersive, and social. It is going to become more like how we do in real life rather we shop in a virtual 3D space and often with the company of others in a virtual store that is entirely on the internet and on virtual mall with a collection of virtual stores.
Why does a brand need to invest in a virtual store?
According to Goldman Sachs, the worldwide market for digital transactions will eventually shift from 15 to 33 percent to the metaverse. So there is a revenue opportunity that the retail can capitalize on.
?There is a new customer base to serve - Gen Z (Born between 1997-2012). Gen Z’s spend more time online naturally - playing multiplayer video games and watching esports. They are virtually intelligent and understand how to navigate their way through the metaverse
A little more than 75% of Gen Z buyers have bought a digital good within a video game, and 60% of these young buyers believe that firms ought to offer their products on Metaverse platforms - Kantar consumer insights survey published in 2021
Because they're accustomed to it in the gaming industry, these customers will demand their whole shopping experience, including virtual stores, be personalized and dynamically generated for them in real-time. The next step is the full integration of e-commerce shopping and gaming.?
Gamers can now buy or win virtual apparel, accessories, and skins from brands like Ralph Lauren, Gucci, Burberry, MAC, and Gillette to customise their avatars in a variety of games.
Brands with Virtual Stores - Examples
?NIKE
They have moved their virtual shop inside a platform called Roblox. They designed parks, courts, obstacle courses, and running tracks. The players can purchase digitalized Nike products, ranging from clothes to shoes, and connect with the brand even more. All these have been carefully constructed as a metaverse brand to show people what Nike is all about.
Coca-Cola
Coca-Cola created their first ever non-fungible token (NFT) to celebrate International Friendship Day. Coca-Cola auctioned the NFT loot box, containing digital apparel that can be worn in the virtual world. The NFT contained a futuristic Coca-Cola Bubble Jacket Wearable, a Sound Visualizer to capture the experience of sharing a Coca-Cola, and a Friendship Card inspired by Coca-Cola’s trading cards from the 1940s.
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Gucci
20 million players visited the Gucci virtual store when they showcased the Gucci Garden, their first ever virtual pop-up store on Roblox. Gucci’s digital offerings could only be purchased for a limited time giving users an understanding of scarcity and yielding hundreds of thousands of purchases. They were buying something unique that also had equally exceptional value. Later these items were later resold for far more than the real-world version’s value by the users.
How it can be in the future?
More and more retailers are going to get into the virtual store. A forecast from McKinsey's is that metaverse could grow to a $5 trillion valuation by 2030.
Social Shopping
Virtual stores will give birth to a concept called Social Shopping - you will be able to shop in real-time with your pals around the world. All participants with their avatars will be able to see, hear and follow each other throughout virtual stores, providing inspiration and feedback to one another. Like in a video call, you will be able to choose whom you want to invite to a private shopping virtual store
Digital to Reality - Reverse Creation of Products
Companies will be able to launch a product initially in the virtual space. This allows them to have enough exposure to obtain feedback and data. And this information can be used to launch the physical version of the said product.
NFT or Non-Fungible Tokens
Non-Fungible Tokens allows for verifying the authenticity, ownership, and utilities of a digital asset. They connect both the digital and physical capabilities of digital assets.
KSwiss, a sneaker brand to celebrate its 55th anniversary offered an NFT of their Classic 66 sneaker, which came with purchasing the physical pair of sneakers
Virtual Reality?
We all know VR headsets are expensive and bulky but they are evolving. They are becoming cheaper, fewer people are feeling dizzy, and becoming manageable in size and setup too. Statista predicts that by 2023 more than 26 million AR and VR headsets will be sol.
The moment when a customer wears a headset as a retailer you are getting the undivided attention of your customer. The retailers can WOW the customer with?
Wrapping Up
The future of retail is not physical vs digital. It is physical and digital - omnipresence, a wholly connected online and offline retail experience. Both shopping experiences will be better aligned and make for a never-ending shopping experience.
All brands will need to keep a careful eye on the market to determine which trends most closely correspond with their core beliefs, operational strategy, and target markets. Brands must have a 3-5 year plan for their experiential e-commerce and metaverse initiatives Brands are likely to invest in blockchain-powered technology first, way before investing in the metaverse or digital assets.