Society has once again taken another step towards an inclusive digital world. A term coined by science fiction writer Noel Stevenson, the Metaverse has moved from a fictional concept to our everyday reality.
“The Metaverse is a large-scale, interoperable network of 3D virtual worlds rendered in real-time, with a virtually unlimited number of users, each with their own individual presence and continuity of data such as identities. You can experience synchronously and persistently: histories, entitlements, objects, communications, and payments.” Venture capitalist Matthew Bell said:
Expectations for the Metaverse
Cassandra Napoli, a strategist at WGSN, a firm that specializes in forecasting consumer trends, explained that the metaverse is no longer the future, it’s here. It’s a reality. Napoli revealed that 70% of her top global brands will be in the metaverse over the next five years.
Further corroborating Napoli’s statement, Goldman Sachs reported that there is a $2 trillion to $12 trillion opportunity in the Metaverse, with $8 trillion a likely figure.
At a forum recently hosted by the Association of Retailers (ACEDET, an acronym in Spanish), Naples spoke about the potential of the Metaverse. “The idea is still developing, but at the moment the consensus is that people have multiple avatars. Just like how Facebook presents different versions of themselves on LinkedIn, different avatars are introduced on different platforms. you get the chance to.”
Similar to DTC (Direct to Consumer), Napoli anticipates having something called “Direct to avatar” in the metaverse. Here, similar companies may sell products such as clothing and accessories as “skins” directly to the avatar of your choice. “
According to JP Morgan’s presentation, “selling virtual goods directly to avatars has already formed a $54 billion market, with some brands testing out different revenue-generating opportunities.” For example, Gucci sold a digital version of the Dionysus bag last year for $4,115.
In 2016, Tommy Hilfiger pioneered a “see now, buy now” business model in retail. After his three-year hiatus from New York Fashion Week, the company is back with a digital twist on its “see now, buy now” model. This year’s Fashion Week allowed consumers to see the clothes on models before they even bought them for their avatars, before consumers were given the option to buy the clothes right away.
“The current trend is for large companies to focus their attention and resources on creating opportunities for themselves in the metaverse. We have launched a ‘Metaverse Like Us’ campaign that includes a collection of 8,888 female and non-binary profile picture avatars for that purpose,” Napoli said.
Gartner, Inc., a technology research and consulting firm, predicts that 25% of U.S. consumers will spend an hour each day shopping, socializing, entertaining and learning in the metaverse by 2026.
Asked about how individuals are entering the metaverse, Napoli speculated that the consensus seems to be that brands are leaning toward virtual reality (VR) over augmented reality (AR). The difference is the inconvenience and additional cost of headset poses required for AR. This will require a headset that brings additional costs to the consumer. VR is accessible on your smartphone and is as easy as opening an app.
Possible concerns
This is an exciting adventure, but there are still many concerns that need to be addressed.
User information security and privacy are the main points of contention for proponents against the development of the Metaverse. According to Napoli, “The idea is that each avatar will be connected to the blockchain and have their financial and personal data protected.” However, it is up to users to set their avatars that way.
Also, the possibility of digital body dysmorphic disorder (a mental health condition that causes you to spend a lot of time worrying about your appearance flaws) is a problem many fear.
People are quick to point out parallels to the impact Instagram has had on young children and question the impact true digital avatars have on people. , 32% of teenage girls say Instagram made them feel bad when they were disgusted with their bodies.
People are quick to point out parallels to the impact Instagram has had on young children and question the impact true digital avatars have on people. , 32% of teenage girls say Instagram made them feel bad when they were disgusted with their bodies.
Given the speed with which the metaverse is being created, it lacks the necessary measures to protect its users.
“Everything is so new…the problem is obvious, but each solution creates two more problems,” said Napoli.
still a long way to go
However, there are those who do not see the expansion of the digital world as a problem.
Proponents of the metaverse expansion argue that video games, digital concerts, video calls, online avatars, and commerce platforms can be considered virtual worlds that already exist.
According to Eric Hazan, senior partner at McKinsey’s and Company, “Marketers and the metaverse represent an opportunity to push internal capabilities and brand innovation in new directions while engaging consumers in entirely new ways. ”
“Now is the right time to adopt a test-and-learn mindset…we need to be open to experimenting in the metaverse, move quickly from failures, and capitalize on successes,” he concludes. I got