According to the market reaction and attention of Nike 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 Nike has integrated the 3D virtual human image into the membership system.
- On October 27, 2021, Nike filed seven patent applications related to virtual goods aimed at protecting its core brand assets in the virtual world. The industry speculated that the move was to prepare for the entry into the Metaverse. The logos that Nike applied for protection this time include well-known logos and slogans such as “Nike”, “Just Do It”, “Air Jordan” and “Jumpman”. The range covers virtual shoes, clothing, accessories, sports bags, sports equipment, art 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 the Nike Metaverse reveal to other sports brands?
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 itself has many problems
First of all, the concept of the metaverse is still in its early stages, and the scope is very broad. Many related technologies such as AI technology, blockchain technology, interactive technologies such as AR/VR, and powerful computing systems are still immature. The corresponding virtual and real economic systems still need 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 concepts of reality and the future. In the future, there may be settings that are inconsistent with 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 Metaverse’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. Therefore, Nike wants to be the first person in the same industry, which is a very important part of the brand promotion and corporate history of the company in the future.
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, will socialize virtually, own virtual land, use virtual clothing, and more. At the same time, you can experience all this through technological equipment. Nike and Adidas have entered the game early to try and start developing the metaverse market, showing Nike’s grasp of future trends.
The pursuit of profit by capital is still the most essential purpose. Once people enter the metaverse, they need the same social, clothing, and even jobs as they do in real life. In order to support these contents, a series of metaverse products must 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. The Metaverse Hotspot didn’t just save Nike a marketing bill. 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.
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. After payment, it can also be delivered to the home in time, which is also an upgrade to the sales of goods.
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.
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.
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. That percentage is only 18 percent among consumers who don’t play games.
This also shows to a certain extent that the audience of the current metaverse is not broad:
- First, many people still don’t quite understand the concept of the metaverse, let alone join the metaverse. On the other hand, some people understand, but do not recognize it.
This has caused the current core development of the metaverse to be somewhat stagnant. Once the crowd does not meet the standard, the business territory cannot be expanded, and even some business 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. And 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 expected to become unique collections. Consumers will be more willing to pay a premium for products, and virtual goods or services will therefore 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 the application of new technologies and the shopping experience, and keep trying, in order to quickly gain a leading edge in the outbreak period.