Introduction of metaverse has caused lots of changes in various sectors of the world around us. The concepts of NFTs and decentralization of commerce have directly influenced both virtual and physical worlds we live in. The evolution of metaverse games made other industries look for their share in the metaverse and the development of metaverse technologies, such as Virtual Reality (VR) and augmented Reality (AR), allowed them to offer their products in the virtual world.
Now that various industries, including automobile, fashion, etc., are taking the advantage of all technologies provided by metaverse and web 3.0, online shopping has also been through experiencing changes in the process.
In this article, we will get into metaverse and metaverse shopping. We further discuss the impact of metaverse on online shopping and the shopping experience people may have in the new market. Let us have a review on the nature of metaverse.
What is the metaverse?
Knowing the metaverse is an essential part of preparing people for online shopping in the virtual reality world. Metaverse refers to a worldwide online experience that stems from the combination of Augmented Reality, Virtual reality and the most modern communication style available now.
This combination develops a virtual environment that is similar to the Internet, though it allows its users to move around, engage in real-time communication and run a parallel life in the environment. Metaverse users can experience all activities they do in the physical world, like go to a concert, have a meeting as well as shopping. Metaverse users, therefore, are allowed to purchase and construct assets exclusive to the Metaverse and have an actual monetary value. These assets, which are available as Non-Fungible Tokens or NFTs and can be traded using cryptocurrencies, may include real estate, works of art, apparel, and all other goods that live in the real world.
This allows metaverse to eliminate the barriers between actual physical shopping and online shopping, and brings out excellent opportunities for both customers and retail sector; customers experience physical shopping from their homes and retailers get into a wider sale market that is not limited to location or custom regulations. Considering that, the metaverse trend is expected to further develop in tech industry and the market opportunity is believed to reach $800 billion by 2024.
Metaverse Versus 2D Shopping
The metaverse offers an immersive, engaging virtual environment to its users. Such environment provides a unique brand experience for all the consumers so that they can interact with the brand through game-like experiences, contests, virtual worlds, live video calls. This kind of exploration is not possible in a 2D environment. Enabling customers to interact with a product in the metaverse is the unique advantage that allows consumers to actually “use” or “try on” the product.
Besides, consumers can be part of the brand narrative through a virtual world. Just like playing a virtual reality, 3D metaverse sets up virtual stores that are designed to directly connect users to the retailers’ world. The complex and fun nature of these showrooms means that users engage longer with the brand and shop more. Thus, it is clear that not only well-known brands, including Dior, Ralph Lauren, Gucci, etc., try to create a strong presence in the metaverse, but also other retailers are now racing to catch up in the metaverse.
This is how Walmart envisions Shopping in the Metaverse
Metaverse shopping integrated with gaming
With the expansion of the metaverse, the number of active retails in the virtual setting has significantly increased. The reason could be that the metaverse allows the combination of commerce and gaming. In the virtual 3D world, all users are represented by avatars. The avatar lives in a metaverse, for example Decentraland, that resembles the reality. There are restaurants, sports stadiums, billboards with advertisements, and brand virtual stores.
Just like the reality, each user can window-shop several brand stores, however it is much quicker in the metaverse; one-minute trying on the trendy dresses by Gucci, the next browsing Prada accessories.
Brand companies such as Fortnite, the online game developer, and Balenciaga have collaborated to allow customers to dress their Fortnite avatars in Balenciaga skins. All the shopping and the purchase will be within the game, making it truly easier to own exclusive Balenciaga skins for their avatars. Thus, customers do not need to leave the game to make a purchase elsewhere, or waste their time looking for a proper shop.
Metaverse Shopping
The metaverse has been creating a virtual world that completely resembles the physical world we live in and major brands and businesses are trying their best to get a share in the new setting. To be successful, brands and businesses need to develop unique consumer experiences for their shoppers in the metaverse.
Therefore, thanks to metaverse, now the retail sector has the chance to coordinate with the whole shifts created in the virtual world and find its place along with other businesses. Meanwhile, customers are able to enjoy new shopping models and approaches provided by metaverse.
Let us have a look at possible ways that engage both customers and brands in metaverse shopping.
1. Virtual Reality
A virtual shopping experience combines the ease of online shopping and the real-world retail experience.
Nowadays, a lot of people around the world shop online. Customers makes use of Virtual Reality (VR) to buy from the convenience of their homes while they still get individualized attention, social connection, and an immersive experience.
VR technology helps businesses present their goods in a virtual setting where there is no limitation to reach customers from all over the world and customers can easily interact with retails and try on outfits in a virtual changing room in a VR showroom.
Metaverse brands also allow their customers to run into virtual influencers when making purchases. It definitely is a fantastic marketing tactic applied by metaverse businesses. Besides, store employees can use video, chat, and audio to conversation with clients in the Metaverse and provide an amazing customized shopping experience.
2. Augmented Reality
Augmented Reality (AR) shopping, on the other hand, allows users to view things in the real world before purchasing. Trying on the products using AR before making a purchase is especially useful for online interactions because customers can see and check everything they buy, including clothing, accessories, jewelry, or cosmetics.
Scanning the QR codes provided on the goods, users can access product information, activities, and interactive experiences, which in turn motivates more shopping.
Furthermore, AR can be used to improve metaverse shopping experience through applying digital components into real-world events. Some brands, such as Nike, hold events using AR and the users could enjoy the time using their mobile app. This gives the chance to the users to not only explore stores but also participate in activities and go shopping.
3. Shopping with Artificial Intelligence (AI) avatars
AI avatars reflect our personalities and represent who we are in the virtual world and play a significant role in our metaverse experience. Avatars make it possible to go shopping with friends and talk to salespeople who can guide you through the virtual store, offer suggestions, and help with the sale. 3D digital avatars, produced by artificial intelligence to recreate real-world human features and actions in the virtual setting, create a more thrilling experience with the virtual shopping.
Metaverse users can choose various types of clothing, hairstyles, or other human features to individualize their digital avatars. This excellent feature may attract even more metaverse shoppers.
Currently, some companies design digital clothing to be worn only by avatars in the Metaverse, which opens up new possibilities for digital fashion. Rec Room let you dress up and style your avatar as you desire. Shoppers can try on and purchase costumes, accessories and household equipment to make their avatars look just like them.
Metaverse customers who look for personalization of the virtual world will undoubtedly take the most advantage.
4. Totally different Shopping Experience
Using the technologies discussed above, it is clearly understood that shopping in the metaverse can be one of the most fascinating experiences in the virtual world. As the metaverse expands and the number of customers increases, many fashion companies are trying to find a way to improve real-time experiences in the metaverse.
Using AI technology, metaverse shopping may attract more customers to metaverse and improve the activity of retails to make fresh, more tailored clothing and increase purchases.
Customers can browse virtual stores, try on garments in a 3D fitting room, and even obtain a 360-degree perspective of different outfits on a person.
In fact, shoppers can purchase everything that exist in reality and see how the items feel and look in no waste of time.
5. New Sales Channel
All the technologies provided by metaverse offer a great chance to brands: they can sell virtual and physical goods on the same platform, which seems to transform the face of online retail and opens up many new business opportunities.
Metaverse allows direct-to-customer sales and, as the result, retailers can enter the market directly and communicate with their customers. Another advantage is that brands can showcase actual products before physically selling them to customers. Therefore, customers can check the product in the virtual world and end in the physical purchase. It will help customers feel confident about the fit or quality of a product.
What brands are in the metaverse?
Several well-known brands have already started leveraging the metaverse and metaverse shopping. Here they are:
- Gucci: Gucci Vault is the house for a new line of CryptoJunky NFTs and ceramic sculptures called Supergucci. Gucci also bought a property plot on the online real estate market in SandBox.
- Coca-Cola: The Coca-Cola Company entered the metaverse in 2021 when it created its first NFT and worked with Decentraland. In April 2022, Coca-Cola launched its virtual fizzy pop beverage in the introduction to the metaverse before its being available on grocery shelves in the real world.
- Selfridges: The upscale British retailer Selfridges partnered with Charli Cohen, the creator of NEXTWEAR to produce digital copies of its products. Shoppers can purchase physical and digital items, including four digital outfits for Snapchat lenses.
- Zara: The fast-fashion retailer Zara announced a partnership with Ader Error to join the South Korean Metaverse known as Zepeto. The cooperation will lead to the creation of the AZ Collection, which will be marketed to the Metaverse and the real world.
- Balenciaga: Balenciaga makes waves in the gaming metaverse with its first NFT wearables in September 2021. The collection includes outfits, bags, and accessories to dress up avatars. Physical stores, as well as the virtual ones, allow customers to buy these NFT assets.
- Nike: In corporation with RTFKT, Nike has also created unique digital sneakers and clothes. It also launched Nikeland in Roblox which is a virtual world of sports.
The list could go further with brands such as Samsung, Louis Vuitton, Adidas and so on.
Conclusion
The metaverse has engaged its users with activities like virtual shopping, digital avatars, and outfit-generating apps.
Although it is still uncertain how we may feel about going into virtual stores, use our digital avatars to buy items, and get style advice from AI sales assistants in a different realm, metaverse shopping is here to offer services to virtual customers. Metaverse is using AI and other cutting-edge technologies to improve the shopping experience and progress the implementation of the metaverse idea in general.
The rapidly purchasing of augmented and virtual reality equipment has motivated lots of business to work with a metaverse platform to sell their NFT products in the new market and improve their current retail environment.
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