Promotion Insights: It’s beginning to look a lot like… the metaverse

Newsletter
Nov 26, 2021
David Hartery
Content Lead
5
Min to read

Another busy month in the promotions space, with focus very much on the festive season. But even in the glitz and glamour of the holidays, there’s an increased focus on protecting the environment and sustainable consumption. Last month we asked you if you plan to add elements of the circular economy to your marketing strategy, and 66% of respondents said yes. Good tidings indeed!

Spotlight on… the metaverse

Facebook is renaming their main business entity ‘Meta’ to pivot towards a focus on the hot new buzzword. Roblox was a hot commodity around the time of its IPO, with investors hungry to buy a piece of the metaverse. But what is the metaverse? And how does it impact online commerce? 

According to Keith Jordan, vice president of innovation at Mastercard’s Labs as a Service business: “Mixed reality will be increasingly accessible to businesses and consumers, transforming our lives over the next few years.”

“We will move through these hybrid worlds with different experiences in different dimensions in a paradigm shift enabled by a tsunami of tech changes over the next decade.”

If you asked two people, you’d probably get three definitions of ‘metaverse’. But the term “mixed reality” gets at the heart of the two dominant visions for the future held by metaverse devotees. 

On the one hand, you have the VR goggle immersive experience, where netizens would live in a virtual world; shopping, socializing, working and playing in the bounds of the digital sandbox. This is the vision with a lot of traction, Facebook’s Meta launch video played heavily on the work they’ve already done in Horizon Workrooms. And Unity recently bought Lord Of The Rings director Peter Jackson’s Weta Digital for over $1.6 billion, as they also plan to bet big on the metaverse. 

However, on the other side, there’s the vision of a smartphone or wearable augmented metaverse, where the internet comes along with you to enhance and upgrade your experiences in the real world. This is also a highly compelling vision, with Niantic — the creators of Pokemon Go — recently raising $300M to pursue their own idea of a ‘real world’ metaverse. This investment put Niantic’s overall valuation at around $9 billion. 

With such huge sums of money sloshing around the key actors in the battle for the metaverse, there’s the potential that whoever’s vision ends up winning out, wins big. You can find out more about how the metaverse offers opportunities for ecommerce on our blog.

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Singles’ Day soft success

Singles Day seems like it was another big hit for retailers across Asia. In China, Alibaba and other companies made an effort for this year's shopping holiday to be a little more lowkey than previous years, but they still had record breaking days. Alibaba and JD.com posted bumper revenue of 889 billion yuan, a record amount and up about a fifth from last year. Our own explainer about Singles Day gives some background to the festivities. Next up: Black Friday.

Supply chains still struggling

A new report released by Adobe Analytics revealed that, in the 18 categories tracked in October, there were more than 2 billion cases of out-of-stock products online. This is an increase of 33% year-on-year and an increase of 325% since October 2019.

If you're currently shopping online, you'll see an out-of-stock message once every 50 pages you visit.

For more information on how promotions and loyalty can help to smooth demand curves, make sure to check out our recent ebook: Loyalty & Promotions in Supply Chain Crunch Era

What they’re saying...

“Globally speaking, the worst is behind us in terms of the supply-chain problems,” said Louis Kuijs, head of Asia economics at Oxford Economics. Read the full article.

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