The metaverse is an emerging industry that presents a unique opportunity for major brands to expand their reach and build new revenue streams. As the industry continues to grow and evolve, big brands must understand what they need to do in order to be successful in the space.
One important factor to consider is the need to be “as crypto-native as possible,” as stated by NFT collector Gmoney. This means that brands must embrace the technology and the culture of the metaverse, rather than simply trying to fit their existing business model into the new industry. Brands must be willing to experiment and iterate, and to collaborate with creators and other players in the space.
Nike and RTFKT
NIKE’s acquisition of NFT studio RTFKT is a prime example of a major brand making a bold move into the metaverse. RTFKT is a leading player in the NFT world, known for their unique digital sneaker designs and collaborations with high-profile artists and brands. By acquiring RTFKT, NIKE is signaling their commitment to the metaverse and their belief in the potential of NFTs as a new medium for creative expression and commerce.
Gucci in web3
Another brand that has embraced the metaverse is Gucci, which launched its first NFT collection in 2021. The collection, called Gucci Aria, featured digital artworks inspired by the brand’s fashion designs, created in collaboration with artist Arianee. The NFTs were auctioned off on Arianee’s platform, with proceeds going to support various social and environmental causes. Gucci’s foray into the NFT space was well-received by the community, and the brand has continued to explore new ways to engage with the metaverse.
More Brands embrace web3
Other major brands have also begun to dip their toes into the NFT space. Adidas launched a limited-edition NFT collection in collaboration with musician and NFT artist Mike Winkelmann (aka Beeple) in 2021, and Coca-Cola auctioned off a series of NFTs to celebrate International Friendship Day. These brands are recognizing the potential of NFTs as a new medium for creative expression and as a way to connect with audiences in the metaverse.
Being mindful in web3
However, it’s not just about creating NFTs and entering the metaverse – brands must also be mindful of the culture and values of the community. NFTs are not just a new way to make money; they are a new form of art and expression, and they are deeply intertwined with the ethos of Web3 and the decentralization movement. Brands must be authentic and transparent in their engagement with the community, and must prioritize the needs and interests of creators and users.
In addition to NFTs, brands must also consider other aspects of the metaverse, such as virtual worlds, gaming, and social media. These platforms offer new opportunities for brands to connect with audiences and create immersive experiences. For example, luxury fashion brand Balenciaga created a virtual fashion show in the video game Fortnite, which allowed players to experience the brand’s designs in a new way. Brands must be willing to explore these new frontiers and find creative ways to engage with audiences.
Social media giants and the metaverse
The Metaverse refers to a virtual world that is interconnected with the physical world through augmented and virtual reality technologies. Social media companies like Snapchat, Instagram, and TikTok are already well-positioned to adapt to the Metaverse since they already have an extensive user base and significant experience with creating digital content.
Here are some steps that social media companies could take to prepare for the Metaverse:
Develop a Metaverse strategy: Social media companies should start by developing a Metaverse strategy that outlines their long-term goals and objectives for the virtual world.
Experiment with AR and VR: Social media companies should start experimenting with augmented reality (AR) and virtual reality (VR) technologies, which are essential components of the Metaverse.
Build an NFT marketplace: NFTs (non-fungible tokens) are digital assets that can be bought, sold, and traded like physical assets. Social media companies could build an NFT marketplace to allow creators and users to monetize their digital assets.
Focus on interoperability: The Metaverse will be an interconnected network of virtual worlds, and interoperability will be critical to its success. Social media companies should focus on creating open standards that allow users to move seamlessly between different virtual worlds.
Foster community: Social media companies should focus on fostering a sense of community within the Metaverse. This can be done through the creation of virtual events, shared experiences, and social features that allow users to connect with each other.
Some obstacles that social media companies will need to address to succeed in a transition to the Metaverse include:
Technical challenges: The Metaverse will require significant technical infrastructure, including high-speed internet, powerful computing resources, and low-latency networks.
Privacy and security concerns: Social media companies will need to address privacy and security concerns to ensure that users feel safe and secure in the virtual world.
Legal and regulatory challenges: The Metaverse will raise a host of legal and regulatory challenges, including issues related to intellectual property, data privacy, and taxation.
In terms of implementing NFTs into the Metaverse transition, social media companies could create an NFT marketplace that allows creators to monetize their digital assets. For example, a TikTok creator could sell an NFT of their popular video, and fans could buy the NFT as a way to support the creator and own a unique piece of digital content. Social media companies could also use NFTs as a way to reward user engagement within the virtual world, creating a new type of loyalty program.
In the end…
Overall, major brands have a lot to gain from entering the metaverse, but they must be willing to embrace the culture and values of the community, experiment, and iterate, and collaborate with creators and other players in the space. The metaverse is a new and rapidly evolving industry, and brands that are willing to take risks and adapt to the changing landscape are likely to have the most success.
Many companies and small businesses can do very well with their metaverse and web3 projects but there must be a broader understanding of the things needed for your community and company in order to truly see great success in the space. Companies like Nike have done an amazing job of getting their community in order to provide products that are not only innovative but practical as well. Social media companies are already one foot into the metaverse and actually have an advantage when it comes to becoming the choice of companies for the growth of the web3 space, this is why Mark Zuckerberg believes in the rebranding strategy of his Meta company.