User scenario + monetary system, when these two decisive factors that cannot be ignored are becoming more and more mature, and have been further accepted and valued, it is really possible for e-commerce in the metaverse to seize the menacing opportunities.
At present, many experts and platforms predict that as brands and retailers continue to explore, more and more consumers are showing strong interest in the e-commerce system in the meta-universe. By 2025, the meta-universe market value of virtual goods, games, and entertainment will exceed $82 billion.
In the meta-universe e-commerce system, cryptocurrencies such as NFTs, which play the leading role in value exchange, although there have been controversies in the past year, the market is still emerging.
As Louis Vuitton, Gucci, Burberry and many luxury brands are testing the NFT field, industry analysts said that these consumer brands will digitally transform and develop their own IP through the issuance of NFTs, so that these IP can gain new vitality and value in the new digital world.
Burberry launches NFT virtual dolls
Among them was Gucci, who released the "Aria" series of NFT films in May, when Gucci put his first NFT work on Christie's auction website for a starting price of $20,000, and the brand announced that it would donate all the proceeds of the auction to UNICEF. At present, the NFT has been auctioned, but the official did not disclose the specific transaction price.
It is worth mentioning that Adidas launched the "Into the Metaverse" series of NFTs, which sold nearly 30,000 within hours of launch. At 0.2ETH per serving (about $820), 29,620 NFTs sold a total of $24 million, and buyers received not only an NFT, but also a special product or experience in digital and physical form. Physical products will include the same sports suit from Ape Indigo Hertz, gmoney's iconic orange hat, and hoodie with a blockchain address, which buyers can claim for free throughout 2022, but with proof that they are still holding an NFT at the time of collection.
Adidas' "Into the Metaverse" series of NFTs
Morgan Stanley has previously published a research report that the NFT market size of luxury brands may reach $56 billion by 2030. Thanks to the existence of the metacosm, the demand for luxury brand NFTs is likely to grow sharply. In addition, Morgan Stanley analyst Edward Stanley said that the overall market size of NFTs may grow to about $240 billion by 2030.
It is not difficult to see that with the addition of more brands and retailers in the future, the development of e-commerce in the metacosm already has a solid foundation and potential. In addition, experts at Scalfast, a global e-commerce services company, also pointed out that the following holiday sales season may push retailers to further penetrate the metaverse world and significantly increase the market potential of e-commerce development in the metacosm by giving away virtual products to consumers or holding a series of events.
"To be sure, there are hardly any supply chain and logistics challenges in the metaverse, concerts that don't require long journeys, parking queues are necessarily more attractive, and luxury handbags or sneakers in the virtual world are equally scarce and exclusive in the real world, especially when allowed to add their own creative elements, and there will also be a market full of potential," says Dan Wallace-Brewster.
It is not difficult to see that in essence, the metacosm has gradually formed a new kind of "shopping mall". On several major metaverse platforms, including Roblox and Epic Games' Fortnite, more and more branded new series and record transactions continue to set new highs are driving e-commerce in the metaverse.
Online gaming platform Roblox
In such a new "shopping mall," consumers will have the opportunity to do more than just browse and buy. On the one hand, e-commerce will hopefully become more natural and social, and the boundaries between gaming and shopping will gradually disappear. As Dan Wallace-Brewster, senior vice president of Scalefast, told WWD, with the development of high-speed broadband, virtual reality technology and processors with smoother experiences are further widely used, and the metacosm is ushering in a turning point in the broader market.
"Ultimately, the metaverse will have different themed worlds and brands at the same time, and the retail platform will build bridges to transfer real-world goods and transactions into the metaverse." As this business system grows larger, entrepreneurs and creators will reach millions of users by creating unique merchandise that is different from the real world. Manufacturing and distribution will no longer exist, and with a fundamental shift in business models, it will be easier than ever for creators to get up close and personal with new markets," says Dan Wallace-Brewster.
The web-based virtual game Second Life
In addition, unlike the commodity attributes of mass production in the physical world, for those products with special life cycle and historical significance, in the e-commerce system of the meta-universe world, it can also rely on the unique and irreplaceable technical attributes of NFTs, as well as the traceability function of the blockchain, accurately marking the differences with other products of the same product, which not only ensures authenticity and ownership, but also brings higher exclusivity and scarcity in the secondary market with these premium capitals.
"By verifying the lifecycle and history of the goods, NFTs corresponding to the physical products can greatly enhance the value level of these special physical goods in the secondary market. As more brands and retailers participate in the metaverse's e-commerce system, physical goods or brands that do not match the corresponding NFTs will also be at risk of depreciation," says Dan Wallace-Brewster.
At the same time, as such a new type of "shopping mall" in the metaverse becomes more and more trending and large,From brands, retailers, to different platforms, it is also necessary to be prepared for a series of tests, such as the security of transactions, the user-centric consumer experience, and the possibility of "abusers".
"If the anonymity of the web and social media gives 'abusers' an opportunity, then the same negative impact will be faced in the metaverse, especially in the e-commerce system where transactions take place," says Dan Wallace-Brewster. Dan Wallace-Brewster mentions Roblox's self-developed monetary system Robux.
Palace Virtual Store
In addition, he also said that without the social, geographical environment and even genetic restrictions in the physical world, the virtual characters in the metaverse will also lose the style and preferences that can be referenced, which requires brands and retailers to further transfer the distribution strategy and brand management experience in the physical world to the metaverse, from the user's social, learning, consumption, and life behavior in the metaverse world, to discover new needs, interests and styles.
At present, the metacosm is not just a concept, but closer and closer to a real world; different cryptocurrencies such as NFTs are also increasingly accepted and valued by consumers. However, for the e-commerce system of brands and retailers, the meta-universe world has just begun, and the future needs to be further run-in with consumers through a series of rules. WWD
(Thanks to Alexandra Pastore and Neha Singh for their contributions.)
Written by yalta
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