BRANDING via METAVERSE

 

Dr. T. Blessty Pearline ¹

 

¹ MBA, M. Com, PhD, PGDCA, Assistant Professor T. Jagadeeshwaran, Loyola College, India  

 

1. INTRODUCTION

The usage of computers are increasing very exponentially, which cause difficulties to many businesses to keep up Israfilzade (2022). Branding had six stages of evolution, the sixth stage of branding evolution was relied on Metaverse & AI. The following flow chart helps you to understand the evolution of branding.

 

 

 

 

                                                                                                   

 

 

 

 

After 2020, the Metaverse was goes on a rapid flow. Gartner, Inc Rimol (2022) reported that, in 2026, 25 % of people use this metaverse for one hour in a day for various purposes.

Molina (2021) mentioned that, celebrities and individuals starts metaverse for their branding as soon as possible businesses also to do the same. Metaverse gives a greater extent ever before to their users, which enables the businesses to reach their customers across the world. So, businesses use this metaverse to reach globally to attain a great Success. Metaverse is a convenient way of promoting and branding. However, the metaverse provides a vast area for businesses to extend their brands beyond the boundaries. By this study, we can understand the concept called BRANDING via METAVERSE.

 

2. LITERATURE RIVEW

Metaverse is a hyper connected digital world which enables a meaningful connectivity across the world and also provides an opportunity to businesses for their branding widely Chandiwala et al. (2023).

Metaverse has lots of effects in marketing. Gen Z and Gen alpha are too much connected with AI and metaverse. Metaverse branding and marketing makes their customers to get their all things done without moving from the actual place, in simple metaverse provides a more comfort and convenient to their users Kemal Gokhan NALBANT (2023).

A new immersive technology which came into existence is Metaverse. Its a great technology which provides a lot of tools for brand promotion. Metaverse provides interactive and native tools like bonuses, product testing, branded avatar, accessories for brand promotion which supplies positive consumer feedback Sizikova (2024).

Metaverse permits an opportunity to businesses to create a digital twin of their brand for merchandise their products in a virtual environment and also it allows the businesses to host events, to research, to conduct exhibition, training and conference to promote their brand identity Bushell (2022).

The development of the Metaverse creating various opportunities for branding. Its provides lot of tools to promotes the brand identity, one of the major tool which enhance the brand through metaverse is NFT (Non-Fungible Tokens) it’s a block chain based digital asset behaves similar to cryptocurrencies CT Lee, TY Ho, HH Xie (2023).

 

3. METHODOLOGY

Method approach is a qualitative data collection. Qualitative data collection means the data which cannot be connverted into numerical terms which is case study, statements, comments, opinions and analysis of researchers and expertise.

Literature Review is done on the basis of branding in metaverse. Analysis of various sites and research papers are quoted as a literature review. Secondary data was collected by books, articles available in internet and also collected by websites like Google Scholar, etc.,

 

3.1. DATA COLLECTION

Secondary data was collected from various sources like books, research papers, articles and websites.

 

3.2. DATA ANALYSIS

Qualitative data is advocated in this study. The case study of various sources are discussed in this study. The analysis of research and conference paper are performed on the data.

 

3.3. OBJECTIVES

1)     To understand the importance of branding in business. How it helps for the success fo the upliftment of the business.

2)     To create a proper view on Metaverse in branding.

3)     To indentify the correct way to use the metaverse in branding.

4)     To understand the Metaverse tools like NFT, avatars, etc.,

5)     To explain the connectivity between the digital world and real world which metaverse provides.

 

4. AN OVERVIEW

4.1. BRANDING

Branding is one of the key element in marketing. According to Philip Kotler, “A Brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors.”

Branding is a crucial element because it differentiate the businesses from each other. It ensures the brand identity and customer loyalty. If branding is not there then every business will suffer to maintain their legacy and customers.

 

4.2. METAVERSE

The Metaverse is a virtual, immersive technology in this digital world where people can interact, work, socialize and do lot of activities using the Virtual / Augmented Reality (VR/AR). It enables the global access in a convenient way.

NEAL STEPHENSON first coined the term in his 1992 novel SNOW CRASH. Now this metaverse technologies are developed by various organizations.

 

 

4.3. NON-FUNGIBLE TOKEN (NFT)

NFT (Non-fungible Token) is a unique digital asset that represents the ownership or proof of authenticity of a specific item. It is similar to Cryptocurrency – Bitcoin. NFT (Non-fungible Token) are stored on block-chains. NFT (Non-fungible Token) ensures the security of the specific item such as art, music, videos, games, etc,.

 

4.4. AUGMENTED / VIRTUAL REALITY

·        AUGMENTED REALITY: It superimposes the digital content like image, sound or information onto the real world.

·        VIRTUAL REALITY: It creates the immersive digital environment similar to the real world through the technologies.

·        Example: VR Games

Both technologies are the key elements in metaverse. These two technologies are used in the metaverse for interactive experience and it extents the metaverse to next level.

 

5. DISCUSSION

Branding is necessary for the upliftment of business and Metaverse reduces the burden which involves in branding. Now discuss indepth about how these two aspects interlinked and enhance the businesses.

At present, Branding had six stages of evolution. The six stage of evolution of branding is relies on Metaverse and AI which means it depends on the technologies. The Gen Z and Gen alpha are use the internet technologies for their day-to-day life. Technological development provides a platform to interact with people irrespective of their geographies. As of now metaverse plays a crucial role in everyone life.

Branding a product will increase the customers. Customer are the kings of every businesses, if a business wants to more profit, then it should provide a best experience for its customer. Businesses which didn't use the metaverse for their branding, marketing, advertising purposes may fall under the companies who are using the metaverse technology for its fuction. Cha (2022). No matter how much technology advances, everyone is still not using metaverse for thir business fuctions only the developed countries use this or else the developed companies will use this Metaverse technology in their business.Let discuss how the developed companies use metaverse in branding,

·        Apple Company: Apple company use the metaverse related technologies for their branding strategies, especially through the metaverse related technologies like Augmented Reality (AR), Virtual Reality (VR) and immersive experience.

·        Meta (formerly Facebook): Meta utilize the full advandages of Metaverse. It creates a Horizon World which provides the users to interact in immersive digital world, it is social virtual reality platform where companies can establish its brand extension by product or brand showcases in VR.

·        Nike: Nike built an interactive virtual world on Robolx, where can the customer can play games, explore the virtual sneakers, and purchase the digital assets like NFT, Nike launced the cryptokicks, NFT sneakers user can customize.

·        Microsoft: Microsoft is developing the holographic and VR (Virtual Reality) meetings, enabling to lead a branded digital environment It use Metaverse for the training, product launches and virtual events.

·        Gucci: Gucci use the Metaverse tool NFT (Non-fungible Token) in their brand development. Gucci launched the NFT series in partnership with SuperRare and Christie's.

·        Louis Vuitton: It creates a Metaverse game to celebrate the 200 th anniversary and uses the digital collectibles to connect with younger audience

·        Hyundai: Hyundai launched Hyundai Mobility Adventure in Roblox, showcasing future mobility solutions and it also uses the Metaverse for brand storytelling and interactive product education.

·        Disney: Disney Metaverse driven storytelling is the integration of Augmented Reality (AR), Virtual Reality (VR) and AI to create the brand experiences.

 

6. FINDINGS

Metaverse enhance the brand engagement by allowing and providing the immersive brand experiences, it increases the customer interaction via AR/VR platforms.

Metaverse brings a new revenue stream, the arrival of digital assets like NFTs (Non-fungible Token), virtual merchandise and branded virtual spaces creates an alternative income sources. Example: Nike's Metavese sneaker sales surpassed $185 million, making ita leader in digital branding. A virtual Gucci handbag NFT sold for $4,115, more than its physical counterpart.

Like the Nike and Gucci, lot of companies are get profit by using the metaverse technologies. Using the NFT (Non-fungible Token) – block-chains technology to sell virtual assets boost the brand extention.

The consumer behavior shifts because of the generation change. Gen Z and Gen Alpha are more engaged in technologies.

Metaverse branding also includes the AI driven virtual branding. In which the brands use AI chatbots amd avatars for personalized consumer engagement in virtual stores.

 

7. CONCLUSION

This study is to understand the concept Branding via Metavese, because nowadays technological advancement goes into next level day by day. It is necessary to go with a flow of technology. Metaverse is emerging technology which influence the current period so the businesses should use the metaverse in their branding. To attain a global reach without the involvement of digital technologies is impossible, Metaverse branding is one of the best choice attain a global reach. It provides a greatest brand extention ever before. Many companies and businesses achieve a great benefits by Branding via Metaverse.

Ultimately, the Metaverse is not just an brand extention – it is the definition of how the businesses create their brand values, legacy, loyalty, goodwill as well as how the businesses shape their customer behavior in a virtual immersive digital world or economy.

There are some challenges, such as security and trust issues, involved in Metaverse branding. However, there is no exception to this because everything has its own good and bad; it is all in our hands how effectively we use the Metaverse. Key takeaways of Branding via Metaverse highlight that success in Metaverse branding requires authenticity, digital knowledge, and a seamless integration of physical and digital brand experience.

 

CONFLICT OF INTERESTS

None. 

 

ACKNOWLEDGMENTS

None.

 

REFERENCES

Cha, S. S. (2022). Metaverse and the Evolution of Food and Retail Industry. The Korean Journal of Food & Health Convergence, 8(2), 1-6.

Chandiwala, M., Patel, P., & Mehta, A. (2023). Advertising and Branding with Metaverse. Dogo Rangsang Research Journal.  

Efendioğlu, I. H. (2022). Can I Invest in Metaverse? The Effect of Obtained Information and Perceived Risk on Purchase Intention by the Perspective of the Information Adoption Model. Arxiv Preprint, Arxiv:2205.15398.

Israfilzade, A. (2022). The Evaluation of the Customer Engagement Levels with Machine-Generated Dialogue in Conversational Marketing. Doctoral Dissertation, Vytautas Magnus University.

Kozinets, R. V. (2022). Immersive netnography: A Novel Method for Service Experience Research in Virtual Reality, Augmented Reality, and Metaverse Contexts. Journal of Service Management. https://doi.org/10.1108/JOSM-12-2021-0481

Lee, L. H., Braud, T., Zhou, P., Wang, L., Xu, D., Lin, Z., ... & Hui, P. (2021). All One Needs to Know About Metaverse. Arxiv Preprint, ArXiv:2110.05352.

Mileva, G. (2022). Understanding the Metaverse through Real-World Examples. Influencer Marketing Hub. Retrieved 2022 June.

Molina, L. (2021). Celebrity Avatars: A Technical Approach to Creating Digital Avatars for Social Marketing Strategies. Doctoral Dissertation, Florida Atlantic University.

Rimol, M. (2022). Gartner Predicts 25% of People Will Spend at Least One Hour Per Day in the Metaverse by 2026. Gartner. Retrieved 2022 May.

Sizikova, A. (2024). Project Manager at The Nomad Art Kazakhstan. Journal of Media and Visual Arts.