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Fashion forward. When it comes to innovating in the metaverse, luxury brands are known for bold experimentation. But creativity is flourishing on the other end of the retail scale too. Teen brands are reaping rewards on platforms where they sell virtual accessories, such as digital black beanies, to young consumers who are increasingly spending more time in the metaverse. One recent campaign encouraged people to twin with their avatars by dressing identically in real life and posting pictures online, leading to ten times more social-media engagement than usual. [Vogue Business] |
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Get your groove on. What do you do if you work with one of the hottest bands the world has ever known and a global pandemic shuts down live performances? If you’re the company behind one K-pop megaband, you go virtual. The South Korean entertainment company lost 98% of its sales from its live-concert business in 2020 when tours were canceled, but it quickly pivoted to virtual-reality concerts. With digital performances costing much less than live shows to produce, its total 2020 revenues and operating profit still increased by more than 33%. [FT] |
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Meta-what? No one can seem to agree on a single definition of what exactly the metaverse is. But there is consensus about its characteristics: immersive and real-time environments that span both virtual and physical worlds, encompass multiple platforms, are powered by a virtual economy, and enable virtual identities. The metaverse is an evolution beyond today’s internet—and it provides marketers with innovative ways to reach consumers.
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Nothing ventured, nothing gained. Although the metaverse is still nascent, there are already lessons to be learned from brands who have journeyed forth early on to see what works and what doesn’t. Companies should define their marketing goals, figure out which metaverse platforms are the best fit for their brands, partner smartly, appeal to their target audiences, and rethink how they define success. Most of all, they shouldn’t be afraid to experiment. See six reasons why the metaverse is here to stay.
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| — Edited by Christine Y. Chen |
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Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
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