Few people have not heard of the "metaverse," the digital future. Companies are now focusing on the tremendous business opportunities that this virtual space presents. This article will present a practical approach, from the technical foundations of the metaverse to how companies can succeed in this new realm, along with specific examples.
What is Metaverse? The Evolving Convergence of Digital Spaces and Business
The Metaverse is not just a virtual world, but the next evolution of the Internet. It is the next evolution of the Internet, where users experience reality through digital avatars, opening up new possibilities for business, entertainment, education, and everything in between.
1. evolution of social interaction: new communication values created by virtual space
Metaverse provides users with a more immersive experience beyond the "text" and "image" interactions offered by traditional social media. This evolution will enable people to connect with each other in a more realistic sense, transcending the limitations of physical distance and time, creating new value as follows
Real-time interaction through avatars
Within the metaverse, users act as avatars and can converse and collaborate with other users in real time. Unlike traditional text-based communication, users can interact naturally with their surroundings, feeling their presence in the 3D space. This allows for deeper connections to be formed during business meetings, networking events, educational sessions, and even daily interactions with friends.
Global communication independent of "place" and "time
In a virtual space without physical distance, users around the world can interact at any time and from anywhere, enabling "simultaneous participation" events and dialogues that were not possible with traditional social media. For example, global conferences and workshops in virtual space facilitate collaboration among companies and individuals without being bound by time zones or geographical constraints.
Enhanced emotional expression
In the metaverse, avatars can express emotions through gestures and facial expressions, enabling "nonverbal communication" that is impossible with traditional social networking services that only use text and photos. This allows for richer emotional expression and brings online interaction closer to a realistic communication experience.
Customize your personal space
In the Metaverse, users can customize their own virtual space, and by sharing that space, they can deepen their "shared experience" with others. For example, by inviting friends and colleagues to your virtual office or room and spending time together, a new form of interaction beyond social networking is created.
Thus, the evolution of social interaction brought about by the metaverse provides a more interactive and sensory-realistic experience that goes beyond traditional social networking and videoconferencing applications.
2. evolution of economic activities: accelerating convergence of virtual space and real business
The metaverse is not just a place for entertainment and interaction, but is building a next-generation economic sphere that is directly linked to real-world business activities. Transactions and asset management within the virtual space are linked to the real business scene, and the following new forms of economic activity are emerging.
Transactions in virtual space
Within the metaverse, digital goods and services are bought and sold, the most notable of which are NFTs (non-replacement tokens) NFTs allow for clear ownership of digital assets such as digital art, virtual real estate, and in-game items, and revenue can be earned by buying and selling them. For example, creators and artists can display and sell their work in the virtual space, and users can own it.
Buying and selling virtual real estate
Within the metaverse, it is becoming more common for virtual real estate to be bought and sold in the same manner as real estate. For example, on virtual space platforms such as Decentraland and The Sandbox, companies and individuals are purchasing virtual land and building stores and offices on it. This allows them to conduct their business activities in a virtual setting without having to have a real storefront or office.
Business Development in the Metaverse
Companies open virtual stores in the metaverse and offer virtual goods and services. Users can visit virtual stores using their own avatars to purchase and try on products. This provides an immersive experience not available with traditional online shopping and enhances consumer engagement. For example, fashion brands such as Gucci and Nike have sold virtual products in the Metaverse, and these are also attracting attention as a new marketing method that works in conjunction with physical products.
Widespread use of virtual currency
Economic activity within the metaverse is supported by virtual currencies. Major virtual currencies such as Bitcoin and Ethereum are commonly used for transactions and asset management within the metaverse. This allows global users to participate in the metaverse economy and enables flexible economic activities that are not tied to the traditional financial system. In particular, fintech companies and digital wallet services are focusing on this area, and the infrastructure to support economic activities within the metaverse is being established.
Creation of new employment opportunities
The metaverse is also creating opportunities for new forms of jobs and services. Occupations that did not exist in reality, such as guides, event management, and digital fashion designers in virtual space, are emerging, allowing companies to take advantage of these new employment opportunities and open up new markets.
It is believed that economic activities in the metaverse will transcend the boundaries with the real world and form a more integrated economic system. This evolution will accelerate business development on a global scale as more and more companies and individuals utilize the metaverse.
What is the "Metaverse" for Companies? Creating the Next Generation Customer Experience
Metaverse is positioned as a tool for companies to provide new customer experiences beyond traditional digital technologies. It is not simply part of a "digital extension" or an "online channel," but it deepens customer interaction to an unprecedented level through the fusion of physical reality and digital space. We are entering an era in which competitive advantage will depend on how companies leverage the metaverse.
Three key values that the metaverse brings to the table
1. provide an interactive and immersive customer experience
Through a 3D virtual space, Metaverse provides an "experiential" customer contact point that has been impossible with traditional digital channels. Users can operate avatars in the virtual space and directly engage with the services and products offered by the company, enjoying a more interactive experience that differs from conventional e-commerce sites and social networking services.
- virtual shopping mallUsers can actually pick up the products, try them on, and customize them at the stores in Metaverse. This brings back the "experience" that is often lost when shopping online and provides an experience similar to that of purchasing in a physical store. For example, Gucci and Nike's attempts to sell virtual products in the Metaverse are helping to strengthen brand value and open up new revenue streams.
- Virtual Events and Experiential Marketing: Companies can hold promotional events and trade shows within the Metaverse for deeper engagement with their customers. This allows them to increase brand awareness and gain real-time feedback more effectively than traditional advertising and campaigns. For example, the case of Coca-Cola's NFT offering at a virtual event exemplifies the convergence of the digital and real world.
2. development of new markets and customer segments
Having a presence in the metaverse allows companies to reach new markets and customer segments. The metaverse is a powerful customer acquisition tool, especially for the digital native generation and users who are familiar with virtual spaces. This allows companies to reach customers that cannot be covered by traditional real stores or websites.
- Global access and unlimited possibilitiesMetaverse: Metaverse eliminates geographic constraints and enables virtual stores and offices that operate 24 hours a day, 7 days a week, 365 days a year. Companies can smoothly expand their global business beyond physical borders, especially for emerging and growing markets where it is difficult to have physical stores.
- New Consumer Experience: Customers within the metaverse are pursuing new experiences that are not limited by the limitations of the digital world. For example, new consumption styles are spreading, such as engaging in consumer behavior in games or purchasing fashion, automobiles, and other products in virtual worlds. Companies can strengthen their competitiveness by capturing these new consumption habits.
3. evolution of remote work and improvement of operational efficiency
Metaverse can also help innovate remote work environments. With the expansion of remote work, companies can facilitate communication and collaboration among employees by building virtual offices within Metaverse. In addition to traditional videoconferencing and chat tools, the addition of interaction in a virtual space allows for more natural and realistic communication.
- Virtual meeting rooms and office spaceMetaverse: Within Metaverse, employees can use their avatars to participate in meetings and collaborate. This enables location-independent collaboration and strengthens team unity. It also facilitates effective collaboration with team members in different time zones and geographies, especially in global companies.
- Training and Skills Development: Companies can leverage the Metaverse to offer training programs and skill-building sessions for their employees. Training in a virtual space can provide a more realistic and interactive experience than traditional e-learning, increasing learning effectiveness. For example, it provides a safe environment for learning in realistic, high-risk situations, such as factory simulations or training for hazardous tasks.
Success stories of companies using the Metaverse
Nike's virtual product sales and use of NFT
Nike sells virtual sneakers and clothing in the Metaverse and offers digital items utilizing NFT. This guarantees ownership of digital items through blockchain technology and allows customers to collect and display virtual goods in the same way as real products.Nike's case is an example of how the convergence of physical and digital goods can create new business models.
Microsoft's Mesh for Teams virtual office
Microsoft offers Mesh for Teams, an in-metaverse collaboration tool that creates an environment where employees can collaborate in real time in a virtual space. This provides an immersive communication experience that goes beyond traditional video conferencing tools. Virtual offices are becoming an important infrastructure for companies, especially as remote work becomes the norm.
Metaverse is an essential tool for companies' next-generation business
Thus, the metaverse is becoming more than just a "digital extension" but a critical tool for companies to innovate the customer experience and accelerate business growth. Through the evolution of remote working, accessing new customer segments, and providing interactive experiences, companies must prepare for the next generation of competition by proactively leveraging the metaverse. Flexibility in changing business strategies to accommodate an ever-evolving metaverse will be key to the success of companies in the years to come.
Business Opportunities Presented by the Metaverse
Fusion of Metaverse and Entertainment
The metaverse is revolutionizing the entertainment field, with new forms of entertainment such as concerts, movie previews, and sporting events taking place in virtual spaces one after another. This has created great business opportunities for companies, as they can now participate on a global scale without being bound by traditional physical constraints.
1. the rise of virtual concerts and live events
Virtual concerts on the Metaverse are an innovative solution for the entertainment industry in a world where real events are limited. While physical live venues are limited by audience size and geographic location, virtual spaces can bring together millions of attendees. Users can also use their own avatars to interact in real time with other participants in the virtual venue.
Virtual live event on "Fortnite."
The popular online game "Fortnite" is a well-known example of a successful virtual concert. American rapper Travis Scott's 2020 virtual live event "Astronomical" had more than 12.3 million simultaneous connections, and the live performance was viewed by millions of users in real time. The event made a huge impact on the entertainment industry by offering a new form of musical experience that transcended physical limitations. Following this success, many artists and event organizers have turned their attention to live events utilizing the Metaverse.
Virtual movie previews
Movie premieres and previews are also held in the metaverse, where audiences can gather in a movie theater to watch a movie using their own avatars. For example, in 2021, a virtual preview of the movie "Tenet" was held, creating a new experience in which audiences could watch a movie all together in a virtual space. Such events are attracting attention as a new marketing method for audiences who cannot go to physical movie theaters or to create excitement before a film's release.
2. fusion of sports and entertainment
In the Metaverse, it is also possible to watch sports virtually, with sporting events and competitions taking place in a virtual space. This allows fans to gather in virtual stadiums with their own avatars and not only watch the games in real time, but also interact with other fans and interact with the players at close range. In addition, athletes themselves sometimes appear as avatars in the metaverse, creating a new form of interaction with fans.
3. impact on the entertainment industry and business opportunities
Entertainment in the metaverse removes physical constraints and makes the experience accessible to a wider audience. This was especially significant during a time when real events were limited by the pandemic. For companies, virtual events offer the advantage of reaching a broader global audience while reducing physical venue and travel costs. It also opens up opportunities for additional revenue opportunities, such as the customization of digital items and avatars within the metaverse.
The Metaverse Revolution in Education
Metaverse has the potential to fundamentally change the future of education. It goes beyond traditional online education by providing an interactive and immersive virtual space where remote students and professionals can come together and share real-life experiences while learning. These virtual classrooms and training programs are revolutionizing educational institutions and businesses alike.
1. virtual classroom and learning environment in the metaverse
In the Metaverse, virtual classrooms are created and students can participate in classes with their own avatars. The design of the classroom can be freely customized, creating an interactive learning environment that would not be possible in a traditional physical classroom.
Simulation of realistic historical experiences and scientific experiments
For example, in history classes, historical events and battlefields can be recreated in a virtual space, allowing students to learn through the experience of being there. In science classes, high-risk experiments and difficult-to-realize simulations can be conducted safely in a virtual space. This allows us to provide advanced learning experiences without worrying about experimental equipment or location constraints.
Global Learning Environment
Another advantage of the Metaverse is that students from around the world can gather in the same virtual space and learn in real time. By breaking down geographical barriers and allowing students from different cultures and backgrounds to interact and learn together, students can develop a global perspective. In particular, international universities and educational institutions have introduced such virtual campuses, providing an international learning environment without physical travel.
2. innovations in training and training for companies
Companies can use Metaverse to provide training and training programs for their employees. In particular, through technical training and simulations, learning is provided that is directly related to real-world work.
Practical Training Virtualization
In the industrial sector, training in manufacturing processes and simulations of hazardous tasks can take place within a virtual space, allowing employees to acquire skills without real risk. For example, in the aviation industry, pilots can be trained in flight simulators in the Metaverse to provide flight training without the use of actual aircraft.
Virtual programs in leadership and team building
Training for corporate managers and leaders is also effectively conducted using the Metaverse. For example, team-building programs in virtual spaces allow employees to collaborate through avatars to hone their skills in communication and cooperation within teams.
3. the future and prospects of metaverse education
Metaverse is fundamentally changing the way education is delivered. Interactive learning environments, expanded distance learning opportunities, and hands-on training utilizing virtual spaces will provide experiences that were not possible with traditional education systems. It will also grow as a tool not only for educational institutions, but for companies as well, contributing significantly to enhancing the skills and knowledge of their employees.
As metaverse-based education expands, more institutions and companies are expected to adopt this new platform, and interactive, personalized learning will become more common.
Doing Business in the Metaverse: Specific Success Stories
The Metaverse has set the stage for new business models and revenue opportunities for companies. A wide range of companies, from small businesses to big tech, have successfully leveraged the metaverse. Here we will look at how the metaverse is expanding business opportunities through specific examples.
Case Studies of Metaverse Utilization by Small and Medium Enterprises
Virtual stores for the apparel industry
In the apparel industry, small and medium-sized companies are opening virtual stores in the Metaverse. Customers use the service to try on products and make purchases in the virtual space. This provides an experience similar to that of a real store, increasing customer engagement.
Increase customer engagement
The virtual try-on service provides a new buying experience in which customers can use avatars to select products while having fun. For example, customers can share products with friends to get their opinions, and enjoy shopping while getting real-time feedback.
Advantages for SMEs
With Metaverse, you can reach global customers without having a real storefront. With no need to carry physical inventory and a low cost of doing business, you can achieve great results with limited capital.
Success story: Japanese apparel brand
Success of Virtual Try-on Service
A Japanese apparel brand offered a virtual try-on service within Metaverse, which proved popular among younger customers. Customers use avatars to freely walk around the store and try on items. The game-like purchasing experience was well received, and sales grew rapidly.
Linkage with AR
In addition, this service is also integrated with augmented reality (AR). Customers can actually try out products at home using their smartphones, providing a hybrid purchasing experience that combines virtual and real life.
Big Tech Companies Entering the Metaverse
Big tech companies such as Google, Meta (formerly Facebook), and Microsoft are entering the metaverse market in rapid succession. Each is offering innovative services and using the Metaverse as a new platform for business.
Meta (formerly Facebook): "MetaQuest" virtual space service
Meta is developing a virtual space service for companies through MetaQuest, a VR/AR device. Companies are building virtual offices within the Metaverse to evolve their remote work environments.
MetaQuest and Horizon Workrooms
Meta's Horizon Workrooms is an application that enables meetings in a virtual space. Participants appear as avatars for an immersive meeting experience. Conversations can be held as if they were in the same space even when physically separated, improving the quality of remote work.
Provision of virtual stores
Meta also provides a platform that allows companies to open virtual stores in the Metaverse. Customers can experience products and make purchases directly in the virtual space. It is attracting attention in the fashion and electronics industries.
Microsoft: Mesh for Teams
Microsoft offers Mesh for Teams, which supports business collaboration within the metaverse. It is particularly used for meetings and training for remote and hybrid work.
Virtual Meetings with Mesh for Teams
Mesh for Teams is a platform that allows users to meet in a virtual space using avatars. By merging virtual reality with traditional Teams, it provides an environment where physically distant teams can work as one.
Innovations in Training and Onboarding
Microsoft's Metaverse technology is also used for corporate training and onboarding. Practical simulations in a virtual space enable effective learning. Manufacturing companies can learn skills without risk, helping them adapt quickly to their operations.
Metaverse offers a new frontier for business, from SMBs to big tech. How companies utilize the Metaverse will determine their future business success.
Summary: Dive into the Metaverse now!
Metaverse is not just a fad, but an important technology that will shape the future. To maximize business opportunities, companies should start preparing now and develop a metaverse strategy. Success in this new area will determine the competitiveness of the future.
