What is metaverse commerce? Introducing the possibilities and strengths of new e-commerce with case studies

[Santhoshzak]

What is the Metaverse​

Metaverse is a coined word consisting of “meta” and “universe”. It refers to a virtual space that exists in a dimension different from reality. The Metaverse is nothing more than a virtual space, but it is characterized by the fact that you can act as if you were in reality when you project it into the virtual space.
For example, you can communicate with friends or purchase goods and services.

Metaverse Market Growth Forecast​

The Metaverse marketplace has gained a lot of attention since global giant Facebook changed its company name to Meta. According to a study by Bloomberg Intelligence, it is expected to grow to 800 billion yen by 2024, and further potential is hidden.

Possibilities of Metaverse x Commerce​

Along with the penetration of the Metaverse, synergies with product sales and EC are also being considered. As a specific method, we will establish points of contact between companies and customers in virtual space to promote brands and sell products.
In fact, at the “Virtual Market 2021” held in December 2021, about 80 companies exhibited at the venue set up in the Metaverse space, and more than 1 million users participated. In the virtual market, each company sells digital content and real products, conducts advertising, etc., and there were many consumption behaviors that resembled the real world.

What is the difference between VR and AR?​

Metaverse is a concept that is often confused with VR and AR. Both have suddenly become popular in recent years, so many people may not understand the definitions and differences between them.
Below, we will explain common points and differences between Metaverse and related terms.

Features of Metaverse and what it can do​

Metaverse is a technology that enables unprecedented experiences and events. It may lead to new business opportunities, so business owners should pay attention to what they can do with the Metaverse.
In the following, we will introduce what can be achieved with the metaverse.

A lifelike video experience
By utilizing VR and AR technology, it is possible to provide a video experience that feels like reality. Because it provides an overwhelming sense of immersion, it has been adopted in industries such as games and animation, providing users with a realistic experience.

Conducting virtual events
In the Metaverse space, virtual events such as live music and social events can be held. Virtual events have already been held, such as the Fuji Rock Festival recreating the venue on the Metaverse in 2019, and the popular Japanese rock band RADWIMPS holding their first virtual live performance in 2020. I’m here.

Sales activities in virtual space
On the Metaverse, it is also possible to buy and sell products using virtual currency. Not only game items and characters that can be used in the Metaverse, but also land is being bought and sold, and it is expected that a wider range of sales activities will be carried out in the future.

Benefits of the Metaverse​

As mentioned above, the Metaverse has the potential to provide new experiences, and there are various advantages. Typical examples include recreating an unrealistic world and revitalizing economic activity.
Below are some of the benefits of the metaverse.

Have a surreal experience

In the virtual space created by the Metaverse, all limitations are gone. In other words, as long as you have the expressiveness and technical ability to reproduce on the Metaverse, you can create various unreality.
If experiences that cannot be experienced in the real world can be turned into content through the Metaverse, it will increase topicality and lead to economic effects.

A new economic zone can be created

Online games similar to the Metaverse have existed for some time, but the feature of the Metaverse is that real economic activities take place in a virtual space. In addition to digital content, it is also possible to buy and sell real products and invest, so there is a possibility of business opportunities in various industries. Also, if there are few companies that have entered the Metaverse, the possibility of obtaining a first-mover advantage will increase.

Can Reduce costs

In the future, the virtualization of offices and stores will lead to a reduction in operating costs for businesses. In the past, offices and stores were essential for business, and fixed costs such as tenant fees and utility bills were unavoidable.
However, if it becomes possible to do business in the virtual space through the spread of the Metaverse, it will be possible to enter the business at a lower cost.

Disadvantages of Metaverse​

While the metaverse has various advantages, disadvantages have also been pointed out. Also, since it is a technology that has just been born and has not been introduced in many cases, there is a risk that potential disadvantages lie dormant. Therefore, you will need to proceed with caution when implementing it.
Below are some of the disadvantages of the metaverse.

High hurdles for introduction
When considering entry into the Metaverse, the biggest problem is the hurdle of introduction. Users need VR devices and PCs, and business operators need a Metaverse development environment and technical capabilities. The number of companies and engineers with VR development technology is small, and development costs a lot, so it will be difficult for small and medium-sized businesses to introduce it.

It has been pointed out that high dependence
The appeal of the Metaverse is its high degree of reality and depth of immersion. However, while these elements are attracting attention as merits, they are also pointed out as dangers. Because the world is so real, there is a risk of becoming immersed and dependent on the virtual space. Users need to be conscious of it so that they can enjoy it with an appropriate sense of distance.

Lack of real communication
In the Metaverse, communication similar to that in the real world can be realized. Furthermore, the Metaverse space also has the convenience of being accessible from your home PC. Therefore, we should be aware of the risk that communication on the Metaverse will replace real communication.

summary​

The Metaverse, which has been attracting attention in recent years, is bringing new possibilities to commerce. Customer service and sales in the virtual space are already taking place, and the number of companies introducing it is gradually increasing.
Marketing that utilizes the metaverse is likely to become a trend, especially in businesses that target the younger generation. Although there are problems such as development costs and hurdles, it would be a good idea to consider introducing it while considering future possibilities.