Why brand authenticity still matters in the metaverse

But with so much ambiguity surrounding the metaverse, and with so much uncertainty surrounding the question of how it will evolve, it’s important for brands to understand how their IRL identities and values will be grafted on to the virtual landscape.

Big brands are staking their claims in the metaverse

Several big-name brands have already established a foothold in the metaverse. Many more are on the way, seduced by the opportunity to attract new audiences, boost brand loyalty and stay relevant in the fast-moving and dynamic world of web3.

A few examples:

• In Nike’s virtual Nikeland, visitors can browse and purchase shoes, apparel and accessories to wear in the metaverse. Nikeland has drawn more than 7 million people since it launched in November 2021, with no signs of slowing down

• Coca-Cola has also entered the metaverse, with a particular focus on NFTs. Last year, Coca-Cola created its first-ever NFT in the form of a ‘loot box’ containing branded collectibles designed to inspire nostalgia. The virtual loot box was auctioned and sold within 72 hours for more than $575,000 via the NFT marketplace OpenSea

• Last year, Gucci demonstrated the growing demand for virtual wearables when it sold a virtual handbag for $4,115 – roughly $500 more than the price of the bag’s IRL counterpart

The success of brands such as Nike, Coca-Cola and Gucci provides some lessons that can inform the strategies of other brands looking to enter the world of web3.

For example:

• Creating exclusive virtual shopping experiences and environments – as Nike has – can be an effective strategy for any brand that already has a strong presence in the physical retail space

• NFT launches, such as those from Coca-Cola and Gucci, can help brands to deepen a sense of brand loyalty and reciprocity with their customers

This is just a small sample of the brands that are setting up shop in the metaverse. One of their secrets to success in the world of web3 has been their ability to apply and adapt their existing brand identities to the new virtual marketplace.

Maintaining brand authenticity in web3

How, exactly, can brands hold on to their core identities in the web3 space?

Flexibility and a willingness to learn are both key. Brands should always bear in mind that the rules of the metaverse are very different from those of the web2 era. The metaverse is decentralized, which means that brands will have to develop new rules for engaging with customers. The rules of marketing are changing, and brands must be ready to change with them. They must learn to speak the language of web3 while not deviating too far from their existing brand identity and voice.

Caution is also crucial. If brands jump in too quickly, without developing a strategy for retaining their brand identity, they risk embarrassment and a loss of trust among their audiences. Brands that stay true to their core values and that deeply understand their own reasons for becoming involved with web3, however, may be able to find their unique path into the virtual, decentralized realm.

No one knows exactly how web3 will shape up over the long run. But as has been demonstrated by brands such as Nike, Coca-Cola and Gucci, emergent technologies – including virtual reality (VR) and NFTs – hold huge commercial potential. If executed carefully, and with a clear intention to hold on to their existing identities and values, brands can win big in the ever-evolving world of web3.

Adam Katz is the chief revenue officer and general manager at Sightly.

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