ROI increased by 450% under virtual shopping How should retailers start to embrace the Metaverse?

For many consumers, the Metaverse may have only begun to catch their attention not so long ago and now, for whom the Metaverse remains a vague notion of the future. However, retailers need to take the Metaverse seriously. The Metaverse is accelerating the way we live , and when the holiday shopping season arrives, the new world of the Metaverse is ready to welcome us. 

Retailers need to be clear that if they don’t understand the Metaverse in 2022, they could be the laggards of the industry. Now is the time to start preparing for the virtual future. 

Successful brands are vibrant not only in the real world, but also on the web, mobile and social media. The Metaverse is just the next extension of this existence. 

By adopting VR, retailers can enable customers to interact with their brands in a unique immersive environment, telling brand stories and enabling customers to have a differentiated experience . Detailed, interactive 3D spaces can encourage consumers to linger in Metaverse shopping venues longer than traditional websites or mobile apps. 

Just imagine the impact of the exciting virtual space on holiday shoppers, and it’s easy to see why online sales, along with customer engagement and brand loyalty, will raise the bar during the hottest shopping season of the year. 

early fashion

The fashion industry was among the first to have a place in the Metaverse, and luxury brands have been particularly active in this space.

Gucci promoted a virtual handbag on Roblox, a popular and established gaming platform , and sold it for $4,100, which is much higher than its actual price.

Louis Vuitton has created a virtual game to celebrate the 200th anniversary of its founder, featuring challenges, prizes and surprises designed to appeal to young consumers.

Dior Beauty has created its own virtual store for the holidays , highlighting select and limited-edition products for gift items in its Atelier of Dreams collection.

“Marketers, store designers, merchants and more are going to have to start thinking about what a ‘store’ really is in a very different way,” Maghan McDowell wrote in Vogue Business. “In a world where any experience is possible, why on earth are we using an industrial-age version of retail as a template for the future?” Maghan points out that virtual stores offer “a third mode of shopping in a way that’s neither ordinary” Stores are also not like shopping sites,” but instead combine “the best of the physical and virtual worlds.

Importance of data

The development of the Metaverse is still very early, but the data analysis gives a good indication of where it is headed. We should call the Metaverse “the next big tech platform,” with Bloomberg reporting that the Metaverse’s market cap is expected to approach $800 billion by 2024 . This translates to a compound annual growth rate (CAGR) of more than 13% of the $1 billion in 2020 compared to some markets under $500.  

Currently, gaming hardware, software, services, and in-game advertising revenue are the main sources of revenue for the Metaverse, which is expected to reach $413 billion by 2024, up from $275 billion in 2020. And those online game makers who know how to seize the opportunity through the virtual world created by the game can gain a larger market share in the future game sales. Overall, the value of the Metaverse market is expected to exceed the current gaming market by nearly three times

A February 2022 report by Credit Suisse predicted that, looking ahead to the next decade, “even modest Metaverse usage” could increase internet traffic’s compound annual growth rate by an additional 37% from the current 30%, or Multiply your current data usage by a factor of 20.  

At the user level, survey data shows that consumers spend an average of more than 14 minutes immersed in a 3D virtual shopping experience, compared to less than 2 minutes on a static 2D e-commerce site. 

Increased customer engagement means a 70% increase in conversion rates, and a 450% increase in ROI for retailers like Metaverse that offer virtual shopping environments

In addition to this advantage, those retailers utilizing advanced VR technology can also access data analytics based on user interactions in the Metaverse, which can help optimize product placement. Not only can marketers determine which products are the most popular, they can also analyze traffic and track user activity, an important step in increasing customer engagement, brand loyalty, and ultimately sales.  

ROI increased by 450% under virtual shopping How should retailers start to embrace the Metaverse?

Spread the brand story

Unlike real-world retail spaces, virtual shopping experiences in the Metaverse have few limitations. Consumers are never hindered by construction costs, crowded showrooms, inconvenient locations or times. In the Metaverse, even the most fantastical sights can be brought to life and delivered by retailers to all consumers. 

In addition to this, using a software-as-a-service (SaaS) solution to manage a 3D virtual reality store allows retailers to take full control without the need for technical expertise .

Once a strong presence has been established in the Metaverse, brands can quickly and easily update their products, store décor and brand stories.

This enables brands to align their virtual store with other channels such as their brick-and-mortar store and website, as it is critical to ensure that a consistent brand storytelling creates cohesion across all sales channels, enabling the perfect omnichannel approach. Virtual stores can also integrate with existing e-commerce systems, facilitating inventory management and payment methods .

The Metaverse can be an exciting yet comfortable space where clients can put aside everyday reality and connect with brands on an emotional and personal level. 

future possibilities

According to Cassandra Napoli, senior strategist at WGSN Insights, it may take a while for the Metaverse to revolutionize the way we work, play, communicate and learn. 

However, retailers should start thinking about more “starting points” now, Cassandra said: “Brands must start thinking around these immersive virtual spaces and plan to align with their own corporate Metaverse strategy, otherwise they will be left behind in the industry. risks of.” 

Robin’s report neatly sums up the importance of the Metaverse, predicting that the Metaverse will be “a new way to experience the internet” and represent an opportunity for all brands to be able to meet their customers anywhere , in this real world , or in a virtual world that has not yet been created.

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