Retail Brands Enter the Metaverse

The metaverse has attracted plenty of attention so far for the impact it could have on gaming and entertainment, but these aren’t the only sectors that stand to be shaken up. Various retail brands have already taken measures to get involved in the metaverse, whether it’s by filing trademarks for NFTs, releasing their own games, or looking into futuristic advertising methods — and other companies have sprung up to accommodate them.

Let’s look at how companies in the retail space could use the metaverse to innovate and sell.

What would retail look like in the metaverse?

You might be scratching your head trying to figure out how exactly retail in the metaverse could make any sense. The easiest concept to get your head around is the idea of buying digital clothing for a metaverse avatar. After all, many of us have bought “clothing” in online games before, from Roblox to Runescape to Sims.

But while this is one way the metaverse could impact retail, it’s far from the only route companies can take.

If the metaverse does become the next iteration of the Internet, people will be spending a lot of time there. And just as advertising on social media platforms like Facebook and Instagram became a must-do for every digital marketing department during the 2010s, the same could be true of the metaverse in the years to come. As people across the world meet up with their friends in avatar form and wander around a virtual reality world, they might look up and see a poster for the latest Zara jacket or Nordstrom shoes.

The metaverse could even be a way for fashion consumers to merge the advantages of the high street and e-commerce. Imagine trying on clothes in a digital mall using virtual reality, making the purchase there and then, and then waiting for the item to arrive in physical form at your address. This is the most futuristic possibility of all, but it might be closer than you think. 

If you have a 3D printer, you may even be able to buy an item in NFT form and print it yourself some day. This would remove the need for the cumbersome, unsustainable practices involved in shipping items around the world during the manufacturing process; admittedly, it’s unlikely to be accessible to the average person any time soon.

Companies making headway already 

If the use cases outlined above intrigue you, you’re probably wondering how you can invest in the frontrunners of this innovation. There are dozens of big-name retailers getting involved, from Forever 21 to Balenciaga. However, we’ll focus on a few retailers making the most headway. But first, a word of caution. Nobody truly knows what form the metaverse will take yet, so while there are likely to be opportunities, it’s anyone’s guess what will ultimately be the most popular or profitable. 

Nike (NKE)

Nike is perhaps one of the retailers that has gone to the most lengths to succeed on the metaverse. Firstly, it filed a trademark for its trainers, which stops anyone else from selling Nike shoes in the metaverse. In fact, it’s already suing another company for trying to do precisely that. Another significant move Nike made was creating its own online corner of the metaverse — called Nikeland — in Roblox, one of the biggest gaming and metaverse platforms around.

Plus, Nike has struck a partnership with RTFKT Studios, a fashion startup that makes its own NFTs — including sneakers. It seems likely that Nike’s ultimate aim is firmly to sell sneakers in the metaverse, although it’s unclear what form this will take.

Gucci 

Luxury brands are just as keen to get involved in the metaverse. The Kering-owned (KER) company Gucci is one of those leading the way. It started selling various digital items in 2021, including sneakers and a handbag.

It’s also experimenting with NFTs, and sold a piece inspired by its Fall/Winter 2021 collection at the online auction house Christie’s.

Microsoft (MSFT)

As for the possibilities the metaverse could open for advertising, Microsoft is one of the firms trying to get in on the action. Microsoft is trying to purchase Activision Blizzard, an American video game company, out of the hope it could become a metaverse gateway. This would give Microsoft a perfect way to market itself using the metaverse and stay relevant — and many other companies are looking into branded gaming experiences as a new type of sponsorship. 

Obsessar

Obsessar is already putting the seemingly futuristic idea of shopping in the metaverse into action by creating its own digital mall. The company has already worked with diverse brands, including Unilever’s Dermalogica, Coach, and Mary Kay.

Imageneria

Another smaller company, Imageneria, is selling NFTs that buyers can turn into physical items by 3D printing. Consumers can buy digital files on the cloud, then take the designs to a 3D printing studio to receive the real product. They already have various ranges of jewelry and accessories. 

Let’s get meta

In isolation, the ideas and technologies outlined above might sound overly ambitious or futuristic. But when combined together, the possibility of retail in the metaverse seems a lot more likely. In a few years, will we all be shopping in virtual malls, with our avatars wearing designer trainers and looking at digital advertisements?

Many of the signs are pointing toward a big “yes.”

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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