Retail Gearing up for Business in the Metaverse

The metaverse has gained the status of ‘the next generation of the internet’. It is more than an improved version of the internet. It is a whole new space, it is expected to be real time, 3D, immersive & interactive, Social & Persistent. The metaverse is a virtual arena where the consumer can exist, not just consume. If that’s where the consumer is, then that’s where (most of) the retailers want to be. According to a study done by Accenture, 71% executives stated that businesses will benefit from the metaverse and 42% indicated that this will be transformational1. So, how is retail enabled in the metaverse? What allows brands to showcase their products in a way that customers can experience & interact in real time with them conveniently?

Product Configurators, Digital Twins of products, immersive experiences in AR & VR can help retailers to provide unforgettable experiences to shoppers. With a digital twin being the virtual replica of a shoppable item, customers can experience the same features of the product in real time. Retail enabled digital twinswill be a shared space in the virtual world, where multiple brands can co-exist and serve customers just as they do in the real world. Shoppers can customize products online in real time 3D and get it delivered to doorstep from watches to cars. Shoppers can choose to immerse themselves in virtual. Reality & do shopping as if they were inside the store and have conversation with sales representatives as well before making the decision.Based on Gartner’s reports, by 2026, 15% of the population will be spending nearly an hour a day within the metaverse2.

Why now? Key enablers of retail in metaverse

One of the questions that comes up frequently in the context of retail in metaverse is “Why now?” Retailers and brands want to understand what’s new now – what’s allowing for the emergence of retail in metaverse? My answer is:maturing technologies like real time 3D (RT3D), digital twins, virtual reality (VR) and augmented reality (AR), all of which are crucial enablers. With RT3D, products stop existing in 2D (as an image on a retailer or brand’s website or app) and move into 3D space, giving shoppers a powerful visual and unique experiential perspective. Unlike 2D images, RT3D items live within the metaverse.

So, what will change when retail does business in the metaverse? Static experiences will become dynamic

One of the goals of brands entering the metaverse is to make shopping engaging while also facilitating sound purchase decisions. If a customer’s avatar can virtually try on a product that he likes, rather than viewing a static image of it, he will be able to make an informed decision. Post-purchase regrets or buyer’s remorse will be lesser than when a purchase is made online without trying on the product, even if virtually.

Isolated experiences will transition to community experiences

When a person shops online, the experience largely takes place in isolation. Unless shoppers are in the company of others when browsing online, they shop alone. The most a person gets to integrate another in shopping is by sharing product cards or referring friends and family. However, with retail in metaverse, shopping once again - just as it is in brick and mortar stores - becomes an experience that happens along with others. People can go shopping with other avatars the way they would offline. Last year, Charlotte Tilbury introduced Shop with Friends, a VR 3D shopping experience that allows customers to invite people to visit and navigate their virtual store together. I believe that an increasing number of retailers will offer such collaborative shopping experiences in the coming years.

Predictions give way to simulations

Big purchases typically demand real hands-on experience of the product. This is not possible in online shopping. Can you imagine purchasing an expensive appliance or equipment online without experiencing its features? In the metaverse, brands can offer simulations of a product’s functionality. Dyson has created a virtual ecommerce platform for their hair care product range for users to experience the products in the virtual reality and not only that but experience the phenomenal engineering behind to make the product unique and special. An option like this allows customers to virtually use a product and map the its features with their needs.A recent survey by Altair revealed that 86% companies in industrial manufacturingare already utilizingsimulation in some form to decrease time, and enhancesafety, operational efficiency, performance and quality4.

But, the exclusive gets more exclusive

Take a look at what Gucci has done recently in the metaverse. In a move that made it the first luxury brand to enter The Sandbox, Gucci has brought together its heritage and gamification to create a unique experience for visitors to get to know about the rich legacy that made it an exclusive brand. This is perhaps one of the reasonsMorgan Stanley statesthat NFTs and gamingwithin the metaverse will comprise 10% of the market for luxury goods by 2030, creating a $56 billionopportunity (in revenue)5. Over the years, I have seen that in many industries the early adopters are among those who write the rules that define them in the initial years. I think that similarly, early retail entrants into the metaverse will get to outline the bounds within what seems like a boundary-less and limitless world full of potential for the seller and the buyer.