It all began with a typical Monopoly game as three buddies tossed dice and traded dollars over an ancient, dilapidated board.
One of the friends eventually inquired about the group’s knowledge of “NFTs. One friend snapped at him and the other asked him to stop procrastinating and pay the rent.
Remember, the year was 2018 when NFTs weren’t yet a significant problem – Snoop Dogg wasn’t hailed as Cozomo de’ Medici, an NFT influencer and CryptoPunk NFTs weren’t selling for millions of dollars.
They began discussing NFTs more as the game went on. Despite their lack of knowledge, they were intrigued by the notion of actual ownership of digital assets supported by blockchain. The Upland metaverse was created there, fusing blockchain gaming, NFTs, and Monopoly-style property gathering. Contrary to the odds, they were not only spot on, but years ahead of most of the world.
Going back a few years ago, NFTs and the metaverse weren’t on the radar. Fast forward to today, and you see everyone from Mark Zuckerberg to teenagers to Snoop Dogg talking about NFTs and the metaverse. What convinced the world to believe that the metaverse would be so big?
It is the ownership.
But what does that have to do with businesses? To elaborate on the same, we are going to write a series of articles on all the use cases that metaverse has across all the industries with this one being the introduction of the series.
- Why Metaverse Matters To The Businesses? (this article)
- Use Cases of Metaverse : Gaming
- Use Cases of Metaverse: Entertainment & Social Media
- Use Cases of Metaverse: Fitness
- Use Cases of Metaverse: Education
- Use Cases of Metaverse : Corporates
- Use Cases of Metaverse: Automotive
- Use Cases of Metaverse: Design, Architecture & Engineering
- Use Cases of Metaverse: Travel, Hospitality & Tourism
- Use Cases of Metaverse: Real Estate & Construction
- Use Cases of Metaverse: Fashion & Apparel
- Use Cases of Metaverse: Medical & Health
- Use Cases of Metaverse: Banking & Finance
Why Should Businesses Care About the Metaverse Economy?
While the first aspect is ownership, the next set of factors are a cultural behaviour shift, and the technology surrounding it.
Following the suit, the metaverse economy is the outcome of an inflection point in consumer behaviour. Digital-first consumers create identities—even online personas— that are important to them when they use their phones, laptops, and gaming consoles. But that sense of identity is mostly lost when they log off and return to the offline world. This leads to a limitation in ownership as the connection to the ‘digital lives’ is largely lost when at work, school, or walking down the street.
The metaverse changes all of this by interweaving online and offline realities into something new. This is achieved in a few ways:
- Metaverse apps provide people with the ecosystems and communities they need to enhance their digital identities.
- More immersive experiences will be possible in both virtual and real settings thanks to Web 3.0 technologies like augmented reality (AR) and virtual reality (VR).
- Blockchain-backed assets, such non-fungible tokens (NFTs), enable users to acquire and possess digital goods with genuine monetary value.
- True ownership of assets gives consumers the freedom to actualize and own their digital identities everywhere.
This is where businesses come into play.
Businesses may now link their digital platforms with the physical world in novel ways, thanks to the metaverse. As close to multidimensional as anything we’ve ever seen, this opens up new channels for information, marketing, goods, services, and money.
There are clear records and control for intellectual property thanks to the immutable blockchain (IP). Even better, companies now have a chance to once again control the purchasing process. According to a former study by Mckinsey & Company, Venture Capitalists (VC) and Private Equity (PE) firms have, so far, invested $120 Billion (USD) in building the metaverse experiences.
In fact, businesses can design resources and experiences within the metaverse that draw ardent customers. Businesses are given the ability to once again actively participate in the purchasing process thanks to new buying journeys in the metaverse economy. Additionally, each encounter creates valuable information about consumer preferences in this new market.
As per the survey of March 2022, more than 17% of the global IT enterprises have invested in the Metaverse. Meanwhile other industry sectors such as education, finance, healthcare and marketing are rolling to work with Metaverse between 9-12%.
Businesses who participate early in the metaverse’s development will have a distinct early-adopter advantage that will allow them to own a larger share of the metaverse’s overall market and culture as it gains popularity.
If you are still sceptical about the utility of metaverse in your industry or business, then skim through the top business giants across the globe
Early Adopters of the Metaverse
- Ecommerce & Retail
- Gucci diversified its presence on Roblox to develop Gucci Garden
- Chipotle hosted virtual restaurant on Roblox to provide its customers with an enthralling Halloween experience
- The luxury fashion house Balenciaga also collaborated with Fortnite
- Sports & Entertainment
- Nike partnered with Roblox to create virtual world called Nikeland
- Roblox hosted metaverse dance music festival of EDC
- Warner Bros also partnered with Roblox to create a virtual movie launch event
- Tennis Australia teamed up with Decentraland to host the Australian Open
- Several metaverse concerts were organized by Muse in collaboration with StageVerse
- Epic Games also partnered with BTS
- Accenture teamed up with Microsoft to develop a virtual office
- TCImage to design buildings in virtual world, using NVIDIA Omniverse
- Meta Platforms also launched Horizon Workrooms
- Arent Fox and PWC purchased land site in metaverse
- Marriott Bonvoy unveiled digital art in metaverse
- Barbados to become first country to establish an embassy in metaverse
- BMW launched JOYTOPIA virtual world
- Hyundai Motors launched metaverse space-Hyundai Mobility Adventure-on Roblox
- Ford’s immersive vehicle environment system to design safer cars
- Hyundai Motors partnered with Unity to build Meta-Factory
- NVIDIA and BMW demonstrated factory of future
- JP Morgan opened a bank branch in metaverse
With such big brands stepping into the metaverse, it is more than clear that the potential market opportunity or the total addressable market of metaverse is estimated at more than USD 1 trillion in yearly revenues is soon going to be true.
What About the B2B World?
Just because B2C companies and retailers have been the first to make their presence felt in the metaverse doesn’t mean the metaverse only offers opportunities for consumer-facing companies. Here are some ways in which the metaverse will benefit B2B companies:
- Better Collaboration and Networking
B2B companies can now take advantage of opportunities to develop client interactions face-to-face via their avatars thanks to the development of metaverse technology. Face-to-face communication is 34x more effective than any text-based discussion, according to research published in the Harvard Business Review. This isn’t surprising considering the importance of nonverbal clues in developing rapport and trust between individuals.
- Helps Create More Immersive Customer Experiences
86% of consumers are willing to pay extra for superior customer service, and 49% have made impulsive purchases after having a more tailored experience, according to SuperOffice. B2B sellers will be able to design more immersive buyer experiences in the metaverse, and these improved interactions might facilitate purchases.
- Opens New Marketing and Advertising Opportunities
B2B companies will have access to new marketing and advertising opportunities as the metaverse develops further. Because the metaverse is still in its early phases, companies that establish a presence today will have a first-mover advantage. Companies can sponsor metaverse events or design tailored commercials that are more likely to draw potential customers.
- Increase in Sales and ROI
Any company’s ultimate objective is to boost sales and revenue, and the metaverse offers a special chance to do just that. B2B businesses can access new markets and revenue streams by creating a presence in the digital sphere. Additionally, the metaverse might boost sales performance. A B2B salesperson, for instance, can host many meetings with clients from all over the world without ever leaving their metaverse workplace.
- Better Employee Productivity
The metaverse can be advantageous for more than just commerce. This technology can also be used by departments like human resources, customer service, and research and development to boost productivity. Employees may pick up new skills more quickly with the use of metaverse-based training simulations, and customer service representatives can assist clients in real-time using avatars. Additionally, this technology may enhance employee collaboration and communication. In the virtual environment, remote workers can now interact in person to discuss projects, exchange ideas, and offer feedback.
“If you wait a year and a half or two years to do something, to have a clear strategy, and to start testing your assumptions about the metaverse, it might be a little bit too late.”
The Opportunity Is Real
Some individuals believe that the metaverse is a far-off idea that won’t materialise for a while. Yes, it will probably take ten or more years before the metaverse takes on the final form that futurists have predicted. However, there are legitimate chances now for businesses to profit from the metaverse’s infancy, chances they can use to not only become metaverse pioneers but also develop an early brand presence.
Brands that are reluctant to take those first, formative steps, or worse, that are unable to see the incredible potential of the metaverse, risk missing out on something that, by all accounts, is, in fact, going to be the next big thing. In other words, if you snooze, you lose, both, in the virtual world, and, in the real one.
About Rising Capital
As Rising Venture Studio, we promote the entrepreneur and the company building process. We know what it’s like to be in the founder’s shoes and support the ‘next big thing’ in crypto, metaverse or gaming with apt resources and network.
As the Rising Capital Fund, we invest in early-stage crypto companies across the NFT, Gaming and Metaverse Sectors, while keeping a portion of our portfolio in liquid assets. We strive to take a fundamental approach to identify unique investment opportunities in the emergent and evolving crypto asset class.