What The Metaverse Means For Retail And Consumer Goods
In this guest article, Mike Edmonds, Senior Director of Business Strategy, Worldwide Retail & Consumer Goods at Microsoft, gives us a use case illustration of what opportunities lie within the metaverse for retail and consumer companies.
The purpose of this article is to fill in this use case gap and describe potential opportunities for retailers and consumer goods companies that can be enabled by the metaverse. To begin answering the question, “what’s in it for me?”
It seems like every day a new piece of content is published on the metaverse that defines the metaverse, projects the market size, and offers frameworks for conceptual understanding. These whitepapers and blog posts are tremendously helpful and have shaped some of our thinking on the topic. Despite the excitement around what is now the hottest buzzword in tech, many companies are struggling to understand what’s in it for them. I’m engaging with retailers, consumer goods companies, and partners on a daily basis and what I hear often is a simple yet complicated question:
“What does the metaverse mean to my customers and my business?”
What’s missing in the conversation are discrete use cases that describe how the metaverse can impact a retailer’s business. The purpose of this article is to fill in this use case gap and describe potential opportunities for retailers and consumer goods companies that can be enabled by the metaverse. To begin answering the question, “what’s in it for me?”
Identifying Opportunities for Retailers
“The metaverse is creating an entirely new feedback loop and opportunity for business. We are enabling metaverse experiences at all layers of our stack, so customers can more effectively model, automate, simulate and predict changes within their industrial environments, feel a greater sense of presence in the new world of hybrid work and create custom immersive worlds to enable new opportunities for connection and experimentation.”
At Microsoft, we break down the metaverse into three strategies: consumer, enterprise, and industrial. Each strategy unlocks specific use cases based on related opportunities and enabling technologies. This breakdown offers an effective way for retailers to identify where metaverse can have an impact, providing context to dive deeper into specific use cases. Although each strategy is distinct, retailers and consumer goods companies will enable capabilities horizontally across each strategy to drive customer value and business outcomes.
Three metaverse strategies that will shape our future
1. Consumer
Centred around online gaming and Xbox, providing a platform for users to collaborate. Use cases within the consumer metaverse unpack how individuals in their daily lives might be able to engage with immersive experiences to explore, play games with their friends, and shop.
Use cases include:
- Virtual Stores. Immersive shopping experiences brought to life through digital store experiences inclusive of digital products, interactive content, and store associate interaction. Virtual stores enable brands to interact and connect with their customers at a new level
- Virtual Worlds & Experiences. Branded worlds & pop-up experiences for consumers to shop and interact with other customers. Virtual worlds enable brands to build a community within their shoppers and create more touch points & upsell opportunities between the shopper and brand.
- Augmented Store Experiences. Use a mixed reality in-store to drive engagement, connection, and conversions of physical products such as virtual fitting rooms, virtual try-ons, and body scanning.
- Games & Engagement. Branded game experiences that provide interactive ways for customers to engage. Many early experiences retailers are lighting up in the metaverse are gamified as it offers an easy incentive
- Branded Virtual Products. Creation of virtual products, either recreated replicas of traditional physical products or digital only, for consumer avatars to use in the Metaverse
- NFTs and Loyalty. Virtual items that serve as membership into branded loyalty programs based on incentivised behaviour.
2. Enterprise
Enterprise use cases focus on opportunities for employees. How retailers can tap into the metaverse to create immersive experiences for their employees to collaborate seamlessly, learn new skills, and empower front line workers.
Use cases include:
- Training. Empower employees with immersive virtual or mixed reality experiences to learn new skills, processes, and procedures and improve knowledge retention
- Product Design & Collaboration. Create private, secure, virtual spaces for geographically distributed teams to collaborate on product design and development lifecycle
- Employee Recruitment & Onboarding. Attract, ramp-up, and retain talent by creating private, virtual worlds for employee collaboration and culture building
- Front Line Worker Empowerment. Provide front line workers with the confidence they need to engage and convert customers through immersive experiences tied to unified customer profiles
- Store Layout Visualisation. Create virtual planograms for associates to collaborate on core store visualisation tasks such as merchandising, store layout and seasonal updates.
3. Industrial
Fuelled by real time data and sensors that will bring IoT, AI, and AR/VR/MR together for continuous simulation with digital twins to drive efficiency, scale, and insights to factory floors and supply chain fulfilment centres
- Digital Twins. Fuel the digitisation of physical assets with real time data to design, analyse, manipulate, and optimise products in a scalable manner through continuous simulation.
- Manufacturing Design, Safety & Testing. Virtually test and install new devices and software to simulate interaction with existing assets without disturbing the production line.
- Simulate & Refine Processes. Run scenarios of new and improved processes and workflows without impacting physical assets
- Data visualisation. Bring to life insights via data from and sensors from IoT, AI, and mixed reality to analyse, monitor and predict scenario outcomes.
These use cases are not meant to be the complete, comprehensive set. In fact, such a list doesn’t exist as retailers and consumer goods companies experiment with technologies that enable metaverse experiences on a daily basis. Treat this list as a starting point for retailers to analyse, assess, and consider for their business. It’s important for retailers to explore metaverse opportunities by focusing on the why first (not the how). Creating a metaverse experience is the relatively easy part. Figuring out if it improves the lives of your customers and employees – and why they should care about it – is much harder.
Your invite | Live Digital Event | Metaverse: Strategies for Retail Success – November 30, 2022.
Join us for this exciting event, where our expert panel will share their metaverse learnings and the insights obtained from working with some of the largest retailers in ANZ and across the world.
From customer conversations and real-world strategies to practical recommendations that you can apply, our speakers will help you deepen your metaverse knowledge.
Latest News
Kantar: AVOD Subscribers Double In 12 Months
Study finds Aussies happy to watch ads on their streaming services. Or, are they just putting the kettle on more often?
Val Morgan Digital Exceeds All Campaign Uplift Benchmarks Via A 12-Month Brand Metrics Study
Val Morgan announces it has exceeded all its campaign benchmarks. Still can't get under an hour for the City To Surf.
Australian Retirement Trust launches monster of a campaign, by M&C Saatchi and Bohemia
Get offered a seat on the bus today? Knees creak like an old pirate's galleon? This retirement ad may be of interest.
Print Audits To Discontinue As Audited Media Association Of Australia Pivots To Support Influencer Marketing
Is it just B&T or are audits in the media industry suddenly becoming murkier than Roxy's husband's tax returns?
News Corp Australia Launches 2024 National Education Advocacy Initiative With Expanded Program
News Corp set to shine a light on the nation's schools in new series, giving illegal bikie gangs a well-earned rest.
Decoding The Consumer Maze: Urban List Report Reveals How Modern Shoppers Spiral From Discovery To Purchase
Latest report unravels a shopper's journey from the joy of discovery through to a nasty letter from a debt collector.
Cosmo Returns To Australia!
Ever get the feeling we've weirdly warped back to 1988 at the moment? Confirm it with the relaunch of Cosmo in print.
People & Culture Consultancy Human Kind Collective Launches To Plug HR Gap For Media Agencies
Does the very mention of HR have you struggling to remember last year's Christmas party? Get the sweats with this news.
‘We Want To Be A Growth Partner, Not Just A Media Buyer Or Someone That Makes Ads’ – Bohemia Boss On Agency’s Ambition
B&T's chatting with Bohemia boss Paul ‘Hutch’ Hutchison. Although we do think 'the dagger' a far superior nickname.
Initiative’s Geoff Clarke: ‘Youth Hits Targets With Enthusiasm, Experience Hits The Targets You Can’t See’
Initiative’s CCO Geoff Clarke on the value of experience in agencies. Not to mention quoting lines from Pulp Fiction.
The Iconic Teams Up With 5 Aussie Athletes For Latest Campaign
Fashion label brings in the athletes for new campaign, many of whom appear to have prepped with re-runs of Zoolander.
Seven West Media Secures New Director Of News & Current Affairs
After a tumultuous few weeks, Seven unveils director of news & current affairs. And B&T never uses tumultuous lightly.
Seven Network Expands NSW Sales Team With Two New Group Business Directors
Seven ramps up its NSW sales team. Both of whom are well versed in pronouncing Manu Feildel's croque-monsieur.
New PR Subscription Changing The Game For Aussie Start Ups
Need better PR? You can now buy it via a monthly subscription. Price does not include a fascinator or Moet piccolos.
Paul Kent At Centre Of Fresh Scandal After Alleged Street Brawl
Do you long for the fights, gouges & testicle grabs of footy's glory years? So too, it appears, does Paul Kent.
DiDi Taps Disney’s Tim Farmer For Head Of Brand Marketing Role
Disney's Tim Farmer shifts over to rideshare company DiDi. Taking with him his Donald Duck coffee mug & mouse ears.
As Sure As Night Becomes Day, The End Of Third-Party Cookies Has Been Delayed
The question remains: what will we see first? The end of cookies, alien invasion or Jesus's second coming?
Fast 10: Scoundrel’s Tim Bullock Explains What Shane Warne & Salt-N-Pepa Have In Common
It's a Fast 10 with Scoundrel's Tim Bullock. Make it sound even faster by sucking on helium while reading it.
Outbrain Snatches Chris Oxley From Foxtel Media
Foxtel's Chris Oxley shifts over to Outbrain, but not before having his press photo taken in the wilds of the Daintree.
oOh!media & POLY Partner With Greening Australia For OOH Awareness Campaign
Like to quell the road rage with super cute pics of fluffy marsupials? This outdoor's just the ticket.
Are Media Cares For The Carers In Its Latest Social Change Campaign
Are Media calls on the government to add super payments to carers' payments. Remains silent on AUKUS, however.
In A Fragmented World, Engagement Is King
Today, B&T TV's talking fragmentation & engagement. But not in a down-on-one-knee sense of the word.
Kyle Sandilands On Advertising: “We Want Return Business. It’s No Good Just Taking Someone’s Money”
Kyle & Jackie O finally arrive on Melbourne radio. As yet, no sign of the monotonous and bitter AFL-NRL debate.
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.