THE METAVERSE: A USER’S GUIDE FOR BRANDS

The Metaverse is the latest buzzword on tech giants’ lips: a future global phenomenon that many believe will transform the online environment, where any number of universes might collide in a gigantic virtual world. A place where avatars can interact in real time, while sharing an online economy in any number of virtual stores. Mark Zuckerberg has declared it the future of the Internet, while brands across the globe, from Tommy Hilfiger (which has recently organized one of the Metaverse’s first fashion shows) to JP Morgan (which has set up the first Metaverse bank) are already getting involved. But is the Metaverse more than just hype? Will it truly change our lives? Whatever happens, companies should start conceptualizing for the Metaverse now, to ensure they catch the bus.

When Facebook renamed itself ‘Meta’ in October 2021, the term ‘Metaverse’ entered the mainstream consciousness. Cynics were quick to point out that we’ve been here before, with Second Life, a virtual space where avatars could also interact and engage in commercial activities such as buying land or houses. In 2006, Businessweek featured Second Life on its cover under the title, ‘Virtual World, Real Money’, and companies such as Nissan, Starwood & Sun Microsystems invested early. Since then, the environment has remained stubbornly niche.

Although we’ve seen some examples of a developing digital economy within the Metaverse such as a Gucci bag that sold on Roblox for more than its physical equivalent, is this really a watershed moment? Will it be different this time?

Our perspective, based on converging signals, is: yes.