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As brands jump on the virtual store hype, is the e-commerce trend built to last?

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Summary

Brands such as Lacoste, Laneige, L’Occitane, and Lululemon are creating virtual stores in the metaverse, which are designed to be more than like-for-like replicas of their offline counterparts. These stores promise to provide a personalized shopping experience, with the added bonus of data gathering. Early adopters of the trend, such as Charlotte Tilbury and American Eagle, have seen successes with their activations, and it is expected that most e-commerce players will have their own immersive experiences within the next five years. Brands are partnering with virtual store developers such as Emperia and Obsess to bring their visions to life, and are reaping the benefits of increased conversion rates, higher average order values, and improved brand loyalty. Virtual stores are also being used for marketing purposes, such as to promote new product launches.

Q&As

What do Lacoste, Laneige, L'Occitane, and Lululemon have in common besides the obvious?
They are all charting their own digital paths via three-dimensional, interactive virtual stores in the metaverse.

What has led to the maturing of demand for virtual worlds?
The earlier marketing hype, which was campaign-dependent and short-lived, has now become a permanent, long-term e-commerce solution treated as a ‘flagship virtual store’.

How have virtual stores impacted the e-commerce landscape?
Virtual stores are a merger of the pleasure of physical retail atmospherics and the utility of e-commerce data-tracking, providing an upgrade to digitally-driven retail.

What advantages does data gathering in virtual stores provide for brands?
Insights from these virtual experiences can highlight what’s selling well, the dominant buyer demographic, the length of time shoppers spend in these arenas, and a consumers’ unique preferences.

What are the benefits of virtual stores for consumers?
Customers can design and dress their own avatars, engage in unique gamified activities, socialize with other users, and receive product recommendations tailored to their preferences.

AI Comments

👍 This article provides an in-depth look at the increasing trend of virtual stores, offering a great overview of the potential benefits and applications for brands.

👎 Although virtual stores offer a lot of potential, this article fails to address the potential for misuse of the platform and the risks associated with data gathering.

AI Discussion

Me: It's about how virtual stores in the metaverse are becoming more popular among brands and how this trend is likely to continue. It also talks about how virtual stores allow brands to gather valuable data on their performance, tailor their offerings to individuals, and provide customers with personalized shopping experiences.

Friend: Interesting. It seems like this trend could really take off. What do you think the implications of this could be?

Me: I think the implications of this trend could be huge. It could revolutionize the way people shop and the way businesses market their products. It could also lead to more personalized shopping experiences and give brands the ability to gather more insights into their customers. It could also give brands the opportunity to create unique and interesting experiences that they wouldn't be able to create in a physical store.

Action items

Research virtual store developers to find the best fit for your brand.
Develop a strategy for how to use virtual stores to gather data and personalize the customer experience.
Experiment with gamified activities, socializing, and product recommendations to create a unique virtual store experience.

Technical terms

Metaverse: A virtual world, typically composed of 3D environments and avatars, where users can interact with each other and use virtual objects.
E-commerce: The buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.
Omnichannel: A multichannel approach to sales that seeks to provide the customer with a seamless shopping experience, whether the customer is shopping online from a desktop or mobile device, by telephone, or in a brick and mortar store.
Augmented Reality (AR): A technology that superimposes a computer-generated image on a user's view of the real world, thus providing a composite view.
Virtual Store: A 3D, interactive virtual environment that allows customers to shop and interact with a brand in a more immersive way than traditional e-commerce.
Gamified: The use of game-like elements, such as points, levels, and rewards, to engage users and motivate them to complete tasks.
Avatar: A graphical representation of a user in a virtual world.