Authored by Markus Levin, Co-Founder of XYO Network
Meta successfully brought the metaverse into mainstream consciousness, especially as it concerns warming up general audiences to the idea of Web3. In dominating the Wild West of the immersive world, the decentralized ethos of Web3 needs to hold true in order for it to truly blossom and mature into a high-powered machine.
The advantage of having Meta in the space with such high-profile branding and audience draw is that it also shines a light on other companies within the industry, multiplying overall investment in the space and accelerating its adoption. No one entity has authority over the metaverse and anyone can build a presence, so some initial slippage isn’t going to seal this realm’s new fate.
New Players Take to the Metaverse
Many new players are beginning to emerge and accelerate their metaverse plans as a result of Meta’s big splash in 2021. The metaverse itself is an emerging concept, but its underlying foundation is a compilation of key industries such as data tracking, logistics, social media, marketing, and inventory management.
The metaverse is a blank canvas with multiple foundation layers, inviting many companies, regardless of speciality or service, to integrate this digital reality into their business models. With the metaverse market projected to be worth $426.9M by 2027, it is no wonder why so many sectors have begun to embrace Web3. Whether it be hallmark fashion brands like Nike, which have made $185 million in metaverse-related projects to date, or projects like XYO that use real world data to effectively connect users in the metaverse, the hunger is very much real and requires cooperation from all camps.
Although countless brands are flocking to reap the metaverse benefits, ensuring that the technology is sound to support its development is paramount.
Optimizing Immersive Commerce Through User Experience
Consumers are much more likely to choose brands that are engaging and offering tailored customer experiences. The metaverse is a once-in-a-lifetime opportunity to provide customers with immersive shopping experiences that tie into their niche interests and purchases. Metaverse users can experience walking into virtual luxury goods stores, trying fashion pieces on their avatar, and even attending virtual fashion shows.
We have seen a slew of luxury retail brands including Gucci, Louis Vuitton, and Givenchy embrace the metaverse and offer digital twins via NFTs. Ecommerce giants have taken notice of this trend, with a recent BigCommerce report calling out Balenciaga as an example of a company that is excelling at blending the physical and virtual worlds.
The entertainment and music industries have especially capitalized on this emerging space to bring concerts and events to the virtual world. Musicians from all genres, ranging from Megan Thee Stallion to Ozzy Osbourne are making music more accessible by performing virtually for free. Fans are no longer required to travel or spend exorbitant amounts of money to get the music festival experience.
Making NFTs Accessible for a Wider Audience
During the NFT boom of 2021, the general public witnessed Bored Apes and other digital art pieces selling for hundreds of thousands of dollars. While many were quick to scoff at expensive virtual images being promoted by celebrities, the silver lining is that NFTs were brought into the mainstream. Once an abstract concept reserved for techies and “degens”, the everyday consumer was quickly introduced to NFTs and the broader blockchain ecosystem. While there are still many education and customer experience initiatives to be implemented, in the not so distant future, average ecommerce shoppers will be able to dabble in the metaverse and purchase NFTs with ease.
As the purchase and storage of NFTs becomes more seamless, the more use cases and higher adoption rates will increase. NFTs will represent our identity, establish ownership of assets, and help us connect real life items to the digital world. This will make NFTs invaluable, as they will be deeply integrated into our everyday lives.
NFTs’ domination of the news cycle in 2021 enticed other projects and companies to invest heavily in the space and prioritize application and utility above all else. Although popularity in NFTs has waned during the current bear market, the projects that have succeeded are those offering phygital perks and expanded user utility. As we watch NFTs evolve and incorporate these core tenants into their design, they will prove quite useful in connecting people to the real-world items they love most.
Much of the value being generated in commerce will come from the ease of use and additional value creation through NFTs and the metaverse. It is only a matter of time before more ecommerce companies and other B2C brands realize the value in creating immersive experiences for customers in Web3. To not participate in this new reality means to have given up, and those that don’t embrace it sooner or later will get left behind the competition.
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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