This potential opens up for retailers

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Source: DIgilife, Bobby – stock.adobe.com

Own showrooms, products in 3D, virtual offers and an interactive customer dialogue: Metaverse offers dealers new opportunities, enormous potential and completely new touchpoints. Why a presence in the parallel world is worthwhile – not just for big brands.

Shopping in Metaverse’s economy? What still after the music of the future sounds are now quite real. Because Parallelwelt increasingly blurs the boundaries between the virtual and physical world. Metaverse arises from the combination of three independent developments: the significantly increasing range of virtual reality (VR) and augmented reality (AR) end devices, blockchain technology and non-fungible tokens (NFTs), as well as Web3 with its new social interaction formats .

All these components offer e-commerce Opportunity to experience virtual and physical products and services in the metaverse and to throw out.

Metaverse economics: definitions of the most important terms

  • VR Devices:

    Virtual reality refers to a computer-generated digital image of reality. If you immerse yourself in this purely digitally created, three-dimensional world using a VR device, you will no longer perceive anything of your real environment. Such VR end devices are VR glasses or headsets.

  • Blockchain/NFTs:

    Blockchain technology is a database technology that anonymizes, decentralizes and securely records financial transactions. Due to their security against tampering, non-fungible tokens (NFTs) are stored on blockchains. Translated into German, the English word token means something like a mark, coin or symbol. A (fungible) token is a digital asset that enables trading with e.g. For example shares, real estate or raw materials. On the other hand, non-fungible tokens (NFTs) are different: these virtual tokens are not fungible and unique. The digital certificates of authenticity can, among other things, be purchased in Metaverse and stored in digital wallets.

Brands and retailers have completely new presentation options for their products via VR devices such as the Oculus Quest 2 VR headset from Meta. Customer agreements, chats and other social connection technologies within the metaverse also form new touchpoints for marketing and sales:

  1. Stores or showrooms: Brands and brand manufacturers can build their own virtual department stores in the Metaverse, where they can advise their customers virtually and individually, sell products or create their own events.
  2. Product presentation: In the virtual stores, retailers and brands can present their analogue products in 3D.
  3. Product range: In addition to the virtual presentation of physical products, completely virtual products are also traded in the Metaverse, e.g. B. Sneakers or watches for your own avatar, which can also be linked to NFTs.
  4. Configuration and customization: Several products can be individualized according to the customer’s needs at interactive touch points in the metaverse.

This distinguishes the metaverse economy from classic online commerce on two crucial points: on the one hand, retailers can address their customers directly and instantly in a way that is otherwise only possible in the analog world; on the other hand, they can explain their products and services in detail and fully – just like in physical retail.

Metaverse's economy
Image: DIgilife, Bobby – stock.adobe.com

How blockchain digitizes favorite brands and status symbols

Established brands such as Balenciaga, Disney or Ferrari are already taking advantage of Metaverse’s existing potential with virtual products. The more time users spend in the Metaverse, the more important virtual status symbols become. Anyone who depends on brands in real life will also not want to be without their favorite brands virtually – ideal conditions for generating sales in both the digital and virtual universes. For example, customers can try on virtual fashion in virtual stores and dress their avatars with it. If you buy a favorite physical product in the Metaverse, you can sometimes buy it along with an NFT of the product. It remains protected indefinitely by being stored on the blockchain and is your own property.

But not only the very big ones are already active in the Metaverse: Smaller brands and retailers are also taking the first steps towards a presence in the parallel world. For example, since 2022 Juwelo, a provider of genuine gemstone jewelry sold through its own TV station and online, has offered physical jewelry in individual collections along with an NFT of the certified gemstone that customers can put in their wallet.

Unforeseen potential

Whether it’s jewellery, luxury brands or fashion: Metaverse offers unimaginable opportunities for retailers. Bloomberg estimates the market volume of the metaverse economy at around 800 billion US dollars for 2024 alone. A Shopify study shows that interactions with products embedded in a 3D or AR environment convert almost twice as well as products presented in classic digital ways. So it pays to be brave – and to venture into new worlds.

Metaverse's economy
Image: jooli

The author Wolfgang Boyé is the co-founder of jooli.

Also read: E-commerce sites: How sellers cope with heavy traffic during Christmas


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