Retail-Tech Landscape: The Metaverse

While virtual environments and simulations are not an entirely new concept—games with engaging virtual experiences, such as Roblox, have been in the market for over a decade—this concept is evolving and impacting a gamut of industries in the process, including retail. As the democratization of virtual technologies and supporting hardware becomes increasingly inevitable, brands and retailers are exploring ways to create and develop virtual presences. The metaverse presents an opportunity to extend the customer lifecycle, enabling shoppers to maintain connections with brands and retailers both pre- and post-purchase. This Retail-Tech Landscape covers selected startups globally that are playing a significant role in shaping the metaverse. We have identified 44 startups across the following categories:

• Digital avatars
• E-commerce
• Gaming
• Marketplaces
• Non-fungible tokens (NFTs)
• Virtual worlds

Trends in the Metaverse Below, we highlight two key metaverse trends that we are observing in the retail industry. 1. Brands and retailers are increasingly exploring virtual “worlds” Branded virtual spaces within the metaverse have evolved in recent months, accelerating the expansion of the metaverse’s digital reality. To stay relevant and capitalize on the fast-evolving metaverse trend, brands and retailers are developing virtual worlds or stores that immerse consumers. We highlight key initiatives by two major retail players to develop their virtual worlds. NIKE

• Partnered with gaming company Roblox to create a virtual world called Nikeland on Roblox’s online gaming platform in November 2021.
• Acquired virtual sneaker NFT company RTFKT in December 2021.

Ralph Lauren

• Partnered with social networking and avatar simulation app Zepeto to introduce a digital clothing line in August 2021.
• Partnered with Roblox to open a virtual store in the metaverse in December 2021.

2. Digital ownership is surging—especially in the luxury sector Digital ownership of assets through NFTs has opened an entirely new selling channel for brands and retailers, particularly to younger generations. While virtual reality (VR) and augmented reality (AR)-enhanced shopping has made it possible to view physical goods in a virtual environment in recent years, the recent evolution toward virtual stores that can facilitate purchases and transfer of ownership has ramped up the application of the technology significantly. We expect ownership of digital assets to surge, with particular appeal among luxury shoppers seeking exclusivity and shopping opportunities not dependent on travel. Brands and retailers acting now have a first-mover advantage, enabling them to secure a higher market share of the metaverse. We present recent examples of digital ownership initiatives from luxury players.

• Luxury fashion brand Balmain partnered with luxury fitness gym Dogpound to introduce a sneaker NFT, which was auctioned on NFT marketplace OpenSea in December 2021.
• French luxury house Givenchy partnered with renowned graphic artist Chito on 15 NFTs sold at auction in November 2021.
• Luxury fashion brand Coach and magazine GQ China partnered with Singaporean startup ZKBox to release six limited-edition NFTs in September 2021.

Retail-Tech Landscape: Metaverse—Infographic

 

Retail-Tech Landscape: Metaverse, by Category

Digital Avatars: Companies assisting users and businesses in creating digital avatars for the metaverse [wpdatatable id=1741 table_view=regular] E-Commerce: Companies assisting brands and retailers with AR and VR experiences to display their products to shoppers [wpdatatable id=1742 table_view=regular] Gaming: Companies allowing content creators to build virtual gaming environments and enabling asset ownership within virtual games [wpdatatable id=1743 table_view=regular] Marketplaces: Companies enabling digital asset trading [wpdatatable id=1744 table_view=regular] NFTs: Companies facilitating the creation of NFTs [wpdatatable id=1745 table_view=regular] Virtual Worlds: Companies leveraging blockchain technology to create virtual environments [wpdatatable id=1746 table_view=regular]