Welcome to this week’s newsletter about the top 5 brands that have successfully navigated their way into the metaverse. As virtual worlds and online gaming become more mainstream, companies are realizing the potential of these platforms to reach a new and engaged audience. In this article, we will explore the success stories of Nike, Coca-Cola, Adidas, Gucci, and Walmart, and how they have leveraged the metaverse to connect with consumers and create innovative experiences. From virtual clothing collections to branded game collaborations, these companies have found ways to stay ahead of the curve and create unique and exciting ways to interact with their customers. So, let's dive into the world of the metaverse and see how these brands are making their mark.
Nike
Sports apparel brand Nike cemented its influential position in the nascent metaverse when it launched Nikeland – a branded, virtual interactive space – in November last year.
Sports manufacturer Nike has always been at the forefront of digital transformation. Artificial intelligence (AI), e-commerce, and in-store experiential technology have been integral to the brand’s strategy for many years. More recently, it has moved to capitalize on the excitement around new concepts such as the metaverse, NFTs, and web3. Here's an overview of some of the ways Nike leverages these technologies to remain relevant and on the cultural cutting-edge..
According to Nike, the company’s metaverse store, Nikeland, which is hosted within Roblox, has been visited by 6.7 million people from around the globe since its launch in November 2021.
Within the virtual store, consumers can try on shoes and other products. Additionally, Nike’s metaverse presence includes games, such as dodgeball, for users to take part in. Nike credits NBA All-Star week with increasing the metaverse store’s traffic.
Jack Donahoe, president and chief executive of Nike, states in a Q3 earnings call, “During NBA All-Star Week, LeBron James visited Nikeland on Roblox to inspire its community towards physical movement in play.” While there, Lebron James interacted with and coached players on the Nikeland Court.
“We plan to continue driving energy there with virtual products like LeBron 19 styles special to Roblox,” added Donahoe.
Nike and branded NFTs with RTFKT
In this third quarter, Nike also announced NIKE Virtual Studios, following the acquisition of RTFKT in December 2021, which released the first official NIKE branded NFT.
Donahoe commented:
“With NIKE Virtual Studios, our vision is to take our best-in-class experiences in digital and build Web 3 products and experiences to scale this community so that NIKE and our members can create, share and benefit together”.
Nike entered the metaverse last November 2021, when they filed an application to register the trademark “Nike, just do it”, as well as their iconic Swoosh, in the metaverse
Nike’s results delivered compared with analyst expectations. Nike Digital continues to be the fastest-growing component of its marketplace, now representing 26% of our total Nike Brand revenue.
On its Q3 earnings call, Nike’s chief executive and president Jack Donahoe explained how the company has been driving consumers to it, saying: “During NBA All-Star Week, LeBron James visited Nikeland on Roblox to inspire its community towards physical movement in play.
Donahoe also noted that the key revenue strategy for Nike in the metaverse is branded NFTs. Nike has been among the first big brands to push the idea of virtual goods having value on parity with their real-world counterparts, in line with Burberry and some luxury manufacturers. It also adds some utility to the brand extension rather than just being a collectable for the sake of it, which is necessary to prevent NFTs from simply becoming a fad.
“We’re pleased by the positive momentum and energy we’re already seeing in space and we’re excited by the future as we continue to extend our digital leadership in the industry,“ said Donahoe.
Adidas
Adidas has spent much of its marketing efforts in recent years establishing an image of itself as being much more than a shoe and clothing brand – it’s been aiming (quite successfully so far) at becoming a leading force in the worlds of athletics, streetwear, music and pop culture generally. It makes perfect sense, therefore, that the brand would be an avid early adopter of the metaverse as a new sphere for interacting with a younger, hipper audience.\
Like Nike’s acquisition of RTFKT, Adidas made web3 history when it launched ‘Into the Metaverse,’ a NFT drop created in partnership with NFT companies Gmoney, Punks Comic and Bored Ape Yacht Club in late 2021. To date, Adidas has been able to effectively leverage the NFT marketplace and the metaverse to promote the ethos of individuality and self-expression that the brand has long pushed for in its traditional marketing.
The Into the Metaverse NFT digital collectible celebrates the adidas Originals collaboration with gmoney, PUNKS Comic and Bored Ape Yacht Club.
Holders of the NFT unlock exclusive access to collaborative merchandise and virtual land experiences throughout 2022.
Adidas provided a glimpse of what may be in store with the “Into The Metaverse” collection. With a $10.94 million in revenue from NFTs, this sportwear label saw over 51,000 transactions in the secondary market, with $175.65 million in volume generated.
“We’ve embarked on the new age of originality. We said from the very beginning that if we’re going to be the brand that’s going to stand for, represent and help push the values of this new generation into the world, then we must move at the speed of culture,” Erika Wykes-Sneyd, Adidas’s vice-president of brand communications, said in a statement in December 2021, around the launch of ‘Into the Metaverse.’ “This goes back to the principles of Adidas, where we embrace the edge, open the door for the new and act with rebellious optimism.”
Gucci
One thing that’s become abundantly clear during these early days of the metaverse as a commercial sphere is that value in the physical, material world can – if executed carefully – translate seamlessly into value in the virtual world. There are a handful of high-end designer brands that have already demonstrated this quite clearly.
Look at Gucci, for example. Launched just over 100 years ago, Gucci has done more than withstand the test of time – it has managed to ride sweeping waves of cultural change, adapt to new technologies and always deliver a product that may never go out of style: elite and fashionable status symbols. Difficult as it is for many to believe, the house famously sold a handbag on Roblox last year at a price that was higher than the bag’s IRL counterpart.
The brand has also been making some bigger moves in the metaverse: in 2021 – in celebration of its 100th anniversary – it launched the ‘Gucci Garden Archetypes,’ a two-week virtual experience “that explores and celebrates the house’s inimitable creative vision,” Gucci said in a statement at the time. And just last week, the brand launched ‘Gucci Town,’ also hosted on Roblox, which has been designed to be a virtual rendering of Vault (its concept store), as well as a space for visitors to “come together with friends.”
Each of these efforts represents Gucci’s commitment to doing everything that it can to remain one step ahead of its competitors as technology and pop culture continue to evolve.
Revenue:
Virtual goods have been a major boom for fashion brands, and that’s something Gucci is not taking lightly. The high-end designer is one of the top luxury brands on the list with $11.56 million in total NFT revenue. Its NFT collection reached more than $31 million in secondary volume. The brand is using the popular game Roblox to immerse its users in the Gucci Garden game and demonstrate the strong potential in the retail VR space. Gucci use Roblox metaverse to sell its products, including its most expensive NFT, a purse that costs more than $3,700 in the real world. In addition to this success, this luxury brand launched Gucci Town on Roblox, which currently boasts over 33.4 million visits and is slated to be an ongoing experience for players.
Coca - Cola
Faced with the rise of a younger generation that’s beginning to shun soda, Coca-Cola was quick to recognize the potential of the metaverse as a tool for re-establishing a connection with tech-savvy youth.
Coca-Cola, one of the world's leading beverage companies, recently made headlines by introducing its new Zero Sugar Byte flavor in the metaverse. The company created the digital version of the beverage and allowed users to experience it in virtual reality platforms. After receiving an overwhelming response from consumers, the company then decided to transform the digital beverage into a limited-edition product that is now consumable in both real and virtual lives.
The Zero Sugar Byte flavor was specifically designed to cater to the growing trend of health-conscious consumers who are looking for healthier beverage options. The new flavor is free from calories, added sugars, and preservatives, making it an excellent alternative to traditional sodas.
Coca-Cola's foray into the metaverse is a significant step towards integrating digital experiences with real-world products. The company has successfully bridged the gap between the virtual and physical worlds, offering consumers a unique and immersive experience. By doing so, the company has opened up a new revenue stream, as the limited-edition product is now available for purchase both in the virtual and real worlds.
In July 2021, and in observance of the Special Olympics, the soft drink behemoth teamed up with 3D digital design studio Tafi for its inaugural NFT campaign. The campaign centered around ‘loot boxes,’ which were basically virtual goodie bags that contained a variety of one-of-one digital assets – including a branded puffer jacket wearable NFT, a “sound visualizer” NFT (which “captures the experience of sharing a Coca-Cola”), and a “friendship card” NFT (a digital revival of the brand’s famous 1940s trading cards).
Blending utility with nostalgia, Coca-Cola’s debut NFT drop is an iconic case study for brands that are looking to ingratiate themselves with the metaverse. This innovative move by Coca-Cola demonstrates the company's commitment to staying at the forefront of the beverage industry by adapting to changing consumer preferences and embracing emerging technologies
Walmart
Walmart has entered the metaverse with the launch of Walmart Land and Walmart’s Universe of Play on Roblox. The metaverse gaming platform has 52.2 million daily active users and 11.3 billion engagement hours. “Our customers are spending loads of time there,” said a Walmart executive.
With its metaverse move, the company has joined giants like Nike and VF Corp to capture buyers' attention through virtual universes. According to the report, Roblox already has a community of more than 5.2 crore daily users, with several of them youngsters.
Walmart's chief marketing officer William White told Bloomberg that it is the first major initiative of the company in the metaverse. He called it another step for the retailer in reaching out to the customers in unexpected ways.
Walmart Entering the Metaverse
U.S. retail giant Walmart announced Monday the launch of “Walmart Land” and “Walmart’s Universe of Play” on the metaverse gaming platform Roblox.
The announcement explains that Walmart Land will feature a virtual store of merchandise for avatars; a physics-defying Ferris wheel; and unlockable tokens and badges that can be earned in various games and competitions. Walmart’s Universe of Play will have “The year’s best toys,” the retail giant described. “The Roblox community can explore different toy worlds to earn coins for cool virtual goods, or complete epic challenges to build a personal trophy case, unlock secret codes and more.”
William White, chief marketing officer at Walmart U.S., commented:
Roblox is one of the fastest-growing and largest platforms in the metaverse, and we know our customers are spending loads of time there.
“So, we’re focusing on creating new and innovative experiences that excite them, something we’re already doing in the communities where they live, and now, the virtual worlds where they play,” he detailed.
