Why does Nike sell shoes in the Metaverse? Read the secret code of wealth hidden behind

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Judging from the market reaction and attention of Nike and other brands entering the Metaverse, this decision seems to be affirmed by users. Does that mean that other brands can also go there one after another? Not so.

In the past three months, Nike has accelerated the layout of the metaverse:

On October 20, 2021, Nike and Tmall announced the launch of the Nike membership advanced plan, which will be launched at the same time in its three flagship stores. It is reported that this is the first time that Nike has integrated the 3D virtual human image into the membership system. Members can choose exclusive images according to their personal preferences, such as “Trend Runner”, “Sportsman” and “Functional Man”.

On October 27, 2021, Nike submitted seven patent applications related to virtual goods, aiming to protect its core brand assets in the virtual world. The industry speculated that this move was in preparation for entering the “metaverse”. The logos that Nike applied for protection this time include well-known logos and slogans such as “Nike”, “Just Do It”, “AirJordan” and “Jumpman”, covering virtual shoes, clothing, accessories, sports bags, sports equipment, art goods and toys.

On November 18, 2021, Nike announced a partnership with Roblox, a metaverse concept game platform, to launch the virtual world “Nikeland”.

On December 14, 2021, Nike announced the acquisition of RTFKT, a virtual fashion brand and NFT collectibles startup.

On December 17, 2021, Adi launched its first NFT series “into the Metaverse”. Nearly 30,000 NFT products were sold out on the day of release, with sales reaching US$22 million.

What signal does Nike’s entry into the Metaverse reveal to other sports brands? What challenges and opportunities exist here?

First of all, traditional brands are already in a dilemma and need to find a way out. Data released by McKinsey in September 2021 states:

The time spent online by Chinese consumers has stabilized. The cost of acquiring new customers for the brand has increased by 20%, and the operating cost of mainstream e-commerce has increased by 10% compared with the past.Traditional brands are forced to compete at low prices, with ever-increasing discounts and further shrinking profit margins.Facing the new challenges brought about by the fading of online dividends, the refined operation of the stock market will become an inevitable choice to break the deadlock of the price war.

The metaverse is Nike’s choice to break the game, but the metaverse itself has many problems.

First of all, the concept of the metaverse is still in its early stage, covering a very wide range. Many related technologies such as AI technology, blockchain technology, interactive technologies such as AR/VR, and powerful computing power systems are still immature. The corresponding The economic system at the virtual and real level still needs a lot of time to verify and adjust.

Secondly, it is uncertain whether the application terminals involved in the metaverse are popular, whether the connection between virtual and reality can be truly established, and whether there is a real landing scene.

In addition, the concept of the metaverse involves many real concepts and future concepts, and there may be settings in the future that are contrary to national regulatory policies or laws and regulations, resulting in the risk of project suspension or termination.

Since the Metaverse is still immature, why would Nike do it? Why frequent, consecutive layouts?

Nike’s grasp of current trends

Entering the virtual world, whether it is a pure virtual commodity or a combination of physical and virtual like NFT, people will only remember the first person to eat crabs, so Nike should be the first person in the same industry, which will be very important for future enterprises. Branding and corporate history are both a part of the story.

The metaverse world as an editable open world will give users a new experience. Users entering the metaverse are no longer simply browsing the content, but are in it and can edit and process it. They will have a virtual identity in the metaverse, they will have virtual social interactions, they will own virtual land, they will use virtual clothing, and so on, and they will be able to experience all of this through technological devices. Nike and Adidas entered the game early to test the waters and began to develop the metaverse market, showing Nike’s grasp of future trends.

The pursuit of profit by capital is still the most essential purpose . As mentioned above, once people enter the metaverse, they need the same social interaction, clothing, and even work as in real life. In order to support these contents, a series of metaverse products are bound to be produced. Nike aimed at the lack of sports brands in the current metaverse, and entered the metaverse early to seize the market.

Nike integrates itself into the hot spot

NIKE has made a good wave of popularity, which is equivalent to a wave of advertisements without investment. One of the most brilliant tricks in brand marketing is to integrate yourself into the hot spot. Metaverse Hotspot not only saves a marketing expense for Nike, both Nike fans and other followers know that Nike sells shoes in the Metaverse, which is really clever.

The metaverse is a virtual world, but the opportunity for brands to grow within this hotspot and trend is very real .For example, some retail brands have begun to use technologies such as virtual try-on/trial to enhance the convenience of customers’ shopping experience, thereby further promoting sales.

In April 2021, Chengdu IFS International Financial Center, a subsidiary of Wharf, built the country’s first full-scene urban complex AR navigation at that time, and linked marketing activities such as AR gift vouchers and new product recommendations to promote customer activity, and it was launched for three months. It helped the overall sales of the project to increase by 157.04% year-on-year, the passenger flow of the audience increased by 123.18% year-on-year, and achieved a digital record of a year-on-year increase of 124.6% in newly registered members, creating a new traffic portal and marketing closed loop with Space Metaverse.

While the world is facing an oversupply of content, that doesn’t mean everyone doesn’t stand a chance. In many industries, the oversupply has yet to happen, and customers are still hungry for useful content. If you’re in one of those markets, you don’t have to worry about a potential future content shock. 

——Mark Fisher, “6 Secrets to Detonating Content Marketing”

Layout Metaverse Marketing Scenarios in Advance

Nike’s layout of the metaverse in advance not only deepened the popularization of the metaverse concept, but also accelerated the advancement of the metaverse.

Although the metaverse cannot be realized in a short period of time, the advance layout can make profits in the first place, and also reduce the cost of entering the metaverse in the future. There are many ways to play the Metaverse. If you know how to use it well, you can also improve the user experience and have your own brand influence in the two worlds. If you are optimistic about the future of the Metaverse, of course, the sooner you get involved, the better.

In the Metaverse, consumers can shop in virtual stores and even try them on, making the shopping experience more realistic. If a 1:1 scene SKP is created in the Metaverse, no matter where they are, consumers can truly experience the feeling of visiting a store on the spot, and they can also deliver it to their homes in time after placing an order, which is also an upgrade to product sales.

As the Metaverse grows in size, brands that can provide unique experiences will occupy a meaningful place in the minds of consumers as enablers of the actual functions of the Metaverse. As consumers begin to understand the vast array of experiences available in the metaverse and those experiences will increasingly be integrated into the real world, there will be opportunities to design new consumer touchpoints as brands participate in the creation of new experiences.

Brands will no longer just passively use a media form or medium, but actively participate in creating a new experience with consumers.

Beware: The Metaverse Is Not Universal 

Nike’s recent sale of related NFTs, a physical and virtual combination, is not harmful to Nike Baileys.

According to the revenue of NFT products that Adi first entered the Metaverse, it seems that it can also prove that the layout of their first entry into the Metaverse is a successful test of the water. Although it has not been able to achieve the benefits comparable to real commodities in the early stage, this is mainly because the audience of the metaverse is still relatively limited. But there is no doubt that Nike’s business map has begun to expand.

Judging from the market reaction and attention of Nike and other brands entering the Metaverse, this decision seems to be affirmed by users. Does that mean that other brands can also go there one after another? Not so.

Although the metaverse is already a very popular field, its applicability is still not high. The most important thing is the crowd:

According to the “Metaverse Global Development Report” jointly released by Newzoo Gamma Data, 38% of consumers who play games say they will definitely participate in similar metaverse activities, compared with only 18% of consumers who do not play games. .

This also shows to a certain extent that the audience of the current metaverse is not broad:

One is that many people do not yet understand the concept of the metaverse, let alone join the metaverse;

This has caused the current core development of the metaverse to be somewhat stagnant. Once the population does not meet the standards, the commercial territory cannot be expanded, and even some commercial blueprints may be strangled in the cradle. As a new horizon for the interconnection of virtual and reality, the metaverse still has a long way to go to reach a universal state.

At this stage, the mainstream virtual technologies of brand owners focus on attempts to enhance the online shopping experience, such as virtual try-on, while more leading brands such as Nike and Gucci have begun to consider or try to sell virtual goods and provide services in the “metaverse”.

With the maturity of blockchain technology, virtual consumer goods are more likely to become unique collections, consumers will be more willing to pay a premium for products, and virtual goods or services will have more room for imagination.

Although there may still be a long way to go before the real metaverse world, but constantly pay attention to changes in consumer demand, plan ahead; pay attention to the combination of new technology application and shopping experience, and keep trying, in order to quickly gain a leading edge in the outbreak period.

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Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-does-nike-sell-shoes-in-the-metaverse-read-the-secret-code-of-wealth-hidden-behind/
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