How to make money in the Metaverse according to Nike

Some of the world’s largest companies have begun investing in the so-called “metaverse”, to give a first glimpse of how people might one day make real money in this hot digital field.

For fashion brands, game makers, and more, this is an online world where users interact as digital avatars, like in a movie. One ready player or an online game second lifeOpens new avenues of trade.

Companies create screen-only versions of their proprietary products that are protected by digital authentication certificates – “non-fungible tokens” (NFTs). They are also acquiring virtual real estate. More than 70% of the “territories” of the Internet are called sand It has already been purchased, largely by companies such as Binance, the world’s largest cryptocurrency exchange, and Atari, the historic video game publisher.

Although companies are making their way into the metaverse to engage in business transactions, most of the activity now is focused on marketing to drive sales in the real world. For example, musicians give concerts on virtual platforms to promote their albums, just as clothing brands participate in virtual fashion shows to generate interest in their latest creations.

Some of these marketing also allow companies to make money. In January, American clothing brand Gap began selling digital hoodies, in the form of NFTs — to give an idea of ​​what shape trading in the metaverse could take for the company. The NFT Hoodie is a piece of clothing that a customer might someday wear while exploring different corners of the metaverse. Currently, however, Gap’s NFTs do not offer this option, as it requires the brand to either develop its own virtual world or find a way to make NFTs compatible with existing metavers. In the meantime, customers can collect six of these NFTs – which currently cost between $2 and $11 each – and by purchasing the entire collection, they have the option to pick up special NFTs – which are more expensive.

According to the company, the first package of NFT hoodies sold out quickly upon release. Gap offered more in April and a host of other NFTs in June. Some of them are already available for resale in secondhand markets to those who still want to complete their collection. Gap and the artist who helped create the NFT Pocket pay 10% off the sale price every time one of them is resold.

The company says it plans to continue to launch virtual wearable NFTs in the near future and possibly work with other digital platforms.

“As more and more people spend time in virtual worlds, we feel it is important for us to follow our customers on this journey,” said Avery Worthing-Jones, Director of Product Management at Gap. “We are in the discovery phase to understand what is important to our customers and what experiences we can provide across the metaverse to enhance and enrich those experiences.”

more immersive

It’s just the beginning of what some metaverse buffs consider to be the internet’s next iteration, but its advocates describe it as much more immersive than the online offerings, including high-quality 3D rendering. In many cases, users are expected to feel that they are interacting with digital content and with each other, enabling them to have experiences that might be too expensive, too difficult, or even impossible in the real world. Companies can take advantage of this by selling virtual goods or promoting their brands to these users.

Companies like Nascar, fast food chain Wendy’s, and legacy financial institutions like JPMorgan Chase & Co. You jump into the metaverse.

JPMorgan, the largest US bank, has signed a one-year lease on a virtual mall owned by a startup called Everyrealm. The property is located in decentralization, one of the many 3D internet worlds that have emerged. While it doesn’t offer any banking services – real or virtual – it currently has a virtual lounge with teleportation on the second floor, screens showing videos on topics like cryptocurrency, a white paper on the metaverse, and a library full of books and the learned owl.

So far, feedback from business clients shows that it’s a “great way for us to use our marketing resources,” says Omar Farooq, CEO of Onyx, a unit of JPMorgan founded in 2020, which operates a Blockchain-based platform dedicated to financial transactions.

Although the bank asserts that it has no intention of making money itself at this time and that it only intends to use it for marketing purposes, it estimates that the growth of metaverse platform operators and companies based there will eventually generate annual global turnover of $1,000 billion.

Much remains to be done to reach this scale, and even some tech figures have expressed skepticism about the possibility since Facebook founder Mark Zuckerberg renamed his company Meta Platforms to reflect his approach to this emerging technology. According to Zuckerberg, the metaverse will represent a new way for people to interact, providing new business opportunities, albeit at high entry costs, for equipment such as headphones that enable more immersive experiences.

Early kingdoms

However, the first virtual world projects give an idea of ​​the new business opportunities that could emerge. Among these digital worlds are online games with their own microeconomics, such aseve online. We also mention roblox gamea popular and popular platform, where users instantly move from one virtual center to another to play games, meet and attend concerts.

Startups like Hololands, the nonprofit Decentraland Foundation, and Pixowl, a subsidiary of Animoca Brands that owns the game sandThey are also trying to build virtual cities. These organizations sell virtual real estate to “first adopters” – companies and individuals – who don’t mind buying land in a world that is constantly being created.

Buyers turn to lessors, renting their goods online to companies that want to open stores, host special events, or simply put up billboards to attract the attention of passersby. These lessors also offer virtual properties to consumers, so they can build digital homes to store their NFTs and hang out with friends.

Last year, Nike and Mattel along with other consumer product manufacturers set up their own centers roblox game to promote their brands. Gucci launched one where it sold about 20 items to users, including virtual handbags and headbands, in most cases for between 80 and 900 Robux (about $1 to $10), the platform’s currency. Most recently, in May, the Italian label began offering a new set of items, including a pair of virtual leggings, for the 130 Robux. It costs between 99 cents for 80 Robux and $99.99 for 10,000 Robux.

One of the big questions still being asked about the metaverse and its long-term profit prospects is whether the online worlds will be virtual worlds where free trade reigns or, conversely, they will mark a return to feudalism with fiefs that will see corporations be lords. For those who have already developed virtual economic systems with large online communities, analysts believe there is no incentive to connect worlds together. But the customary equation would then become a kind of world where people could certainly move from one country to another, but without being able to trade or being able to enter or leave their money.

“If every metaverse behaves like a country whose border guards don’t allow visitors to return sneakers bought in another country, the metaverse will be a small universe,” warns Eric Gordon, managing director of the Wolverine Venture Fund at Ross School. Business at the University of Michigan.

To avoid this fatal fate, some companies are working to connect the worlds of the future metaverse.

Thus startup Tilia proposes a way to ship money in and out of the metaverse, and is working on ways to move it between virtual worlds. At the same time, markets are being launched where a lot of NFTs can be purchased for use in many areas. On the other hand, OpenSea, Rarible, and Objekt allow consumers to buy tokens that act as digital currency, but also to resell or exchange them with others.

“We’re still in the beginning,” said Lydian Jones, Executive Vice President and General Manager, Digital Experiences Unit at Salesforce. “But we are already seeing new ways for companies to promote their brands and offer shopping experiences in these virtual environments.”

(Translated from the original English version by Grégoire Arnold)

Leave a Comment