Since the word meta has made its debut, all the business giants like Facebook, Amazon, Decentraland, Microsoft, Tencent Holdings, Sony, etc., are in a race to grab the biggest chunk of the virtual market. But what is metaverse is still unclear to many people. For businesses, it’s an opportunity, and how it impacts them is crucial to take the necessary steps.
But first, let’s talk about what metaverse is.
What Is Metaverse?
The metaverse is an alternate world that exists only virtually but offers you the opportunity to escape reality and live in another world where you don’t feel the difference between reality and augmented reality. It is a virtual twin of the real world where everything is available in its digital form. Even you are present there in a digital form and can experience things. For example, you can take avatars and meet people, date, attend conferences, lectures, and even live concerts.
Why is it getting popular? Because it not only offers an escape but also allows you to earn money and use it in the real world, though it is not so easy yet. The amalgamation of blockchain, NFTs, businesses, and economies have resulted in a new reality, the metaverse.
Impact of Metaverse on Online Businesses
Today, businesses are impacted by every small move in the market. Customers are evolving, and so are the businesses with them. Metaverse is not a small change but a whole new world, and it is going to impact online businesses in every possible way. Thus, businesses need to understand the metaverse’s impact on online businesses.
How it will impact businesses is another realm, but the real question is what businesses will do in the metaverse. The answer is- they are going to sell. You advertise your product where you can find more people and where you can sell more. The young generation is found in the metaverse and thus, brands like Nike, GAP, and even Tinder are taking it to the meta world.
What do they get? Nike experienced a footfall of 7 million on its virtual platform Roblox, which it could never get in the real world. Travis Scott’s online concert reached 12 million, indicating why brands are moving to AR rather than selling tickets for a real-world show.
Besides, AR is claimed to be the same as the real world. If you own a Versace bag in the real world, would you not like to show it off to your digital friends? Of course, you will do. But what if there is no Versace in the virtual world? That’s a problem for the brand that doesn’t grow with technology. People will switch from one brand to another because their reputation is essential. Gucci has already set foot in the virtual world and hosted a virtual exhibition in 2021. Balenciaga is there, and more brands will only follow their stride.
If your competitor takes it to the next level, you must work hard to stay in the race. It has also compelled renowned brands to switch strategies and spend millions of dollars and pounds to land space.
A Digital Economy
An economy also includes essential services like banks, security exchanges, and trading institutions, and the virtual world will be incomplete without them. JP Morgan has already set its foot in the metaverse, and other banks are expected to follow suit. The lack of humanity in the current banking industry due to digitization is expected to be overcome with the debut of the banking industry in the metaverse. The idea of virtual ATMs is also expected to facilitate the ease of spending money in the metaverse.
Impact On Online Shopping
The eCommerce market is expanding with every passing day, and the metaverse is expected to offer consumers the opportunity to try different outfits in the virtual world and own them in both real and in another world. The desire of customers to own their favorite brands in the virtual world has made global brands think and make a move. That’s why Gucci, Ralph Lauren, and Balenciaga have already registered their presence in the metaverse. This world is introducing a new world of shopping for its young visitors, which will only impact other brands that don’t step up quickly.
Impact on Consumer Goods Market
Apart from luxuries, entertainment, gaming, and shopping, consumer goods have the biggest share in the market. Not only the giants like Walmart, but even smaller brands need to move to the metaverse. Online grocery shopping has already had a severe impact on brick-and-mortar stores, and if they don’t make a move to the metaverse, they will be severely impacted. Moving to the metaverse will save them huge administration costs and will help them interact with millions of people.
Impact On Life
While the virtual world sounds fun, running metaverse requires a huge load of electricity, which will negatively impact the environment. The metaverse works through a combination of blockchains, NFTs, and other online technologies, but in the end, there is always a risk to the safety of virtual assets, wallets, coins, etc.
The metaverse is a digital twin of the real world. While you can have fun in the virtual world, you will always have to return to reality. It is a bitter truth. You will always need physical goods, real clothes, drinks, food, and most importantly, money. Metaverse may impact online businesses, but they will never be closing their doors.
The metaverse is not a threat but an alternate world where you can live alongside the real world. So, it will offer the same, even more opportunities instead of impacting the businesses for the worse. The real world and its online businesses are irreplaceable.
The metaverse is waiting for you if you are a growing business or want to reach more people. Like in the real world, you will need investment to start selling. So come on, explore a whole new world.