It seems that the digital reality, which was once considered a pipe dream, has turned into a possibility through the foundation of the metaverse. Metaverse, a digital realm once restricted to speculative fiction and gaming, is believed to have developed into a hub for brand innovations. “ In recent years, virtual worlds were often dismissed as absurd, but today, the focus has shifted, with brands and the retail industry increasingly recognising the potential of these digital worlds. The metaverse offers a fresh opportunity for brands to engage with and cultivate relationships with a new audience,” Sumit Singh, CEO and co-founder, DashLoc, told BrandWagon Online.
The Metaverse market is projected to reach a value of $2.1 billion in 2024, as per data from market research firm Statista. This market is expected to show an annual growth rate (CAGR 2024-2030) of 40.03%, resulting in a projected market volume of $16.1 billion by 2030. With the retail sector facing challenges including intense competition and evolving customer expectations, the Metaverse emerges as a promising solution to recreate the immersive in-store experience and address needs such as customer service, engagement, retention, and loyalty-building, Singh added.
“I think the emergence of the metaverse has created new opportunities and challenges for businesses . They can now navigate the complexities of virtual environments, advising clients on digital presence, customer engagement, and immersive experiences. The metaverse’s entry into the corporate world seems to have spurred innovation, requiring consulting firms to adapt their strategies to help companies thrive in this evolving landscape,” Yashraj Bhardwaj, co-founder, Petonic Infotech, a business management consulting firm, said.
La-La Digital Land!
It is believed that brands are believed to have found a new way of presenting themselves through the metaverse. Insights provided by SPINX Digital, a web design company, have shown that before brands foray into the metaverse, the initial steps on the plan include finding the strategy of target markets already present in the metaverse, along with evaluating the competition level, chalking out the milestones and goals, and finally implementing the plan of action. Moreover, from Gucci and Nike to McDonald’s and Walmart, almost today all brands have a presence in the metaverse. Reportedly, Walmart entered the metaverse by launching two experiences on Roblox, an online gaming platform, to attract teenagers as customers. For instance, McDonald’s in a bid to celebrate the 40th anniversary of its dish Chicken McNuggets rolled out the McNuggets Land in The Sandbox, a metaverse platform. Moreover, Gucci curated its own immersive metaverse experience within The Sandbox, and Nike’s metaverse area, called Nikeland, utilises Roblox’s applications to help customers connect and avail an immersive experience.
Other companies include Audi, which unveiled an interactive showroom called Target to allow users to transact in the virtual shop. Apart from Roblox and The Sandbox, other metaverse platforms which seem to be making their mark in the corporate world are Decentraland, Axie Infinity, Voxels, Horizon Worlds, Illuvium, among others. “The metaverse offers opportunities for brands to create immersive experiences that captivate consumers in ways traditional media cannot. Through interactive virtual environments, brands can engage with their audience on a deeper level, fostering a sense of connection and belonging,” Kalpana B, CEO and chief thinker, dGTL, said.
By 2026, 25% of people will be present in the metaverse to avail entertainment and shopping services for roughly an hour per day, which is considered a statistic backing the potential of e-commerce in the metaverse, as per Gartner, a management consulting firm. Insights from a survey done by Google found that 66% of people stated their preference towards augmented reality (AR) for shopping experiences. Moreover, Shopify, a multinational e-commerce company, unveiled a significant uptick in conversion rates, with products featuring 3D content demonstrating a staggering 94% increase compared to those lacking such immersive elements.“Brands can leverage data analytics and Al algorithms to deliver personalised experiences tailored to each consumer’s preferences and behaviour. Whether it is virtual product recommendations based on past purchases or interactive storytelling experiences, personalised interactions enhance engagement by making consumers feel seen and understood,” Kalpana highlighted.
Media reports suggest that the metaverse can redefine business-customer relationships, along with bettering in-house procedures. Using metaverse, companies can go beyond their geographical boundaries and tap into new markets and audiences. “As for the broader question of brands entering the metaverse, it’s becoming increasingly evident that there is significant value in this venture. The metaverse offers a new dimension for customer interaction, brand experience, and digital commerce. As more brands explore these virtual spaces, early adopters who can create meaningful, engaging, and value-driven experiences will likely see substantial benefits in customer reach, engagement, and loyalty. The key will be to innovate in ways that resonate with and add real value to the target audience’s metaverse experience,” Vishal Gondal, founder and CEO, GOQii, said.
Is it safe?
However, a looming question seems to be how can brands navigate privacy and data security concerns in the metaverse. Market experts have highlighted the need for businesses to inculcate encryption protocols, user authentication, and data anonymisation methods to ensure personal data protection. According to Hyperspace’s no-code metaverse platform, in the metaverse, encryption can be used to safeguard data against illegal access. At the same time, authentication can ensure that only permitted users can enter the virtual dimension. Moreover, there is a need for businesses to implement end-to-end encryption protocols and user-level permissions. “Privacy and data security concerns in the metaverse are critical for corporate platforms. Encryption protocols, strict access controls, and data protection measures are essential in safeguarding sensitive information. Additionally, privacy policies, regular security audits, and compliance with regulations such as GDPR can ensure trust and confidence among users. Collaborating with trusted technology partners and staying updated on emerging threats are also understood to be crucial strategies in mitigating risks and maintaining a secure virtual environment for all stakeholders,” Piyush Gupta, CEO, VOSMOS, a meta-commerce platform, said.
For industry experts the metaverse holds an immense potential to reshape the way brands interact with consumers, driving deeper engagement, unlocking new revenue streams, and strengthening brand loyalty. “By embracing this transformative technology, brands can position themselves for success in the digital age,” Apurv Modi, managing director and co-founder, ATechnos Group, said.
Follow us on Twitter, Instagram, LinkedIn, Facebook