The Retailer Spring Edition 2023

SPRING 2023

9

The potential economic value of the metaverse could generate up to $5 trillion by 2030. McKinsey

Safer, like-minded communities and micro-communities

Brands like Tiffany & Co. (founded in 1837), Louis Vuitton (founded in 1854), and Gucci (founded in 1921) have managed to stay relevant for over 100 years because they know the biggest risk is taking no risk. Whilst brands in 2023 would be advised to approach NFTs with careful thought and some degree of caution, it may well be that those which are least afraid to experiment and meet the expectations of the new insatiable generation of the digital age will prosper most. How are brands evolving and taking advantage of the metaverse? Interest in the metaverse is growing at an exponential rate; less than five years ago, no one was talking about it. Then Facebook rebranded to ‘Meta’, adding weight to the next new phenomena in the digital media tech world. Now, businesses and brands are clamouring to be one of the first to engage and be ‘trend setters’ within this new hyper-interactive, digital environment. The likes of Disney, Nike, Warner Bros., Gucci, Coca-Cola, Louis Vuitton are all getting in on the action. What does the metaverse mean for brands? The metaverse as a digital space is largely influenced by gaming culture and values community, playfulness, and user empowerment. This shift in the dynamic between brands and consumers can offer opportunities for more creative brand positioning. The metaverse also offers brands opportunities to engage with a larger and more varied audience (in particular Gen Z) who might not have engaged with them in the real world. According to McKinsey, Gen Z average eight hours per day on screens. The metaverse is a virtual domain open to all. The value of communities Developing communities in the metaverse enables users to create an avatar to represent themselves which can meet fellow avatars to col laborate and interact in 3D environments, participating in and building communities together. The metaverse becomes valuable for businesses at this intersection – of tech, creativity and community – by capitalising on a deeper connection with their customers, brands can fulfil desire for value, community and experiences.

The future of the metaverse is also embedded in the unique opportunity it affords to build safer micro-communities – featuring inclusive and open engagement for their users, meaningful relationships, all guided by rules and responsibilities. This is a brand win, and a consumer win. This is an extract from The Collective by Lewis Silkin’s Business in 2023 Report. Click here to read the full article. This article was written by Lewis Silkin’s Wendy Saunders, JJ Shaw, Nicholas Buckland and Amy Earnshaw. The World of Web 3.0 – The Collective by Lewis Silkin (thecollectivebyls.com) NFT Trading Volumes Collapse 97% From 2022 Peak - Bloomberg

Wendy Saunders wendy.saunders@lewissilkin.com

JJ Shaw jj.shaw@lewissilkin.com

Nicholas Buckland nicholas.buckland@lewissilkin.com

Amy Earnshaw amy.earnshaw@lewissilkin.com