AR, VR, and the Metaverse – How Asian Retail Markets Can Find Opportunities

Current Uses of AR, VR, and the Metaverse in Asian Retail

As of 2020, Euromonitor International’s Digital Survey showed that a third of APAC businesses planned to incorporate AR and VR in their business plan within the next five years. In 2023, we see the results of that investment throughout Asian retail markets, their investments, and ground-breaking digital marketing campaigns in virtual spaces.

Large retailers, tech giants, and financial powerhouses have displayed impressive immersive spaces as the world experiments with AR, VR, the Metaverse, and NFTs, such as Sony’s investment into gaming giant Fortnite to help progress its Metaverse technology.

The Metaverse has also become necessary for experiencing life as we knew it before the COVID-19 pandemic, which has seen heightened restrictions in APAC countries. As a result, APAC countries, especially China and South Korea, surged ahead of other regions to deliver experiences to their citizens during lockdown periods through AR, VR, and Metaverse technologies. As of 2023, China is now second in the world for Metaverse technology.

Interactive experiences, such as visits to museums, concerts, and replications of real-life experiences, are highly sought after in the Asian market, still to this day. Consider China’s eagerness to deliver Chinese cultural experiences, including over 60 Chinese museums via the Metaverse. Chinese companies have recognised the opportunity to engage with the public in innovative ways, thinking beyond the current climate in Asia and into the future as the Metaverse gains in popularity globally.

However, it should be noted that the APAC market investment in the technology is considered very low compared to the North American market. As of November 2022, North America has the largest metaverse market in the world, with over 70% of market revenue. Will the APAC market remain interested beyond initial investments?

Use Case for AR and VR in APAC

Helen Ma, the eCommerce Director of VF Corporation and eTail Asia 2023 speaker, stated that AR and VR are “a hot topic for now, not sure about 2023. Is the trend going to stay or go [is] what we should be looking out for.” Providing consumers with experiences outside of traditional in-person stores and online e-commerce sites is a major priority for brands hoping to follow in the footsteps of successful brands who invested in AR and VR early and made big gains as a result. There are many use cases of how combining experiences with products and services has led to brand allegiance and loyalty from customers.

Immersive retail experiences are now plentiful in APAC retail spaces, and those who offer these additional experiences in partnership with their products have seen great success. Take Japanese retailer MINISO who offered VR and AR games on the streets of major cities as part of their holiday campaign in 2022. Having bundled this promotional game with social media marketing beneath the hashtags #Lifeisforfun! And #MINISOPentaClaus. These hashtags were used over 100,000 times on TikTok within the first week and were viewed over 300 million times. Overall, the event was seen as a huge marketing success, according to MINISO’s press release.

Use Case for The Metaverse and NFTs in APAC

Metaverse in APAC

Like AR and VR, the Metaverse is a technology seemingly guaranteed to be a part of our future. The question for retailers is – how should my business engage with this technology to bring my customers Metaverse experiences?

Brand engagement no longer has to occur through a visit to a mall, a shop, or even an e-commerce store. Instead, you can engage with brands through games and experiences within the Metaverse. Brands can show off new and exciting products to consumers through these experiences, where you can purchase in-game items resembling real-life branded items. Even online games like Roblox and Fortnite have become mainstays for branded game content that provides an introduction to brands.

One of the best ways a customer can engage with a brand is through virtual try-on and engagement with a product through digital spaces. Measuring return on investment through these opportunities individually is difficult to see, especially from bigger brands. However, the Metaverse is expected to bring in $800 billion in market share by the year 2024, according to Bloomberg.

Nike, for example, hosted Nikeland through the Roblox platform, where players can interact in via game play and engage in the virtual shopping of Nike products, a long-term strategy encouraging repeat visits. According to The Drum, over 21 million users have visited Nikeland and been exposed to Nike’s products and virtual try-on features through this platform. Fans were able to meet, socialize, and form bonds over the brand in creative ways that they would otherwise not be able to outside of the Metaverse.

Not only did Nikeland amass an outstanding amount of viewership and innovative marketing, but their partnership was also a ground-breaking attempt to reach younger audience in the Metaverse. According to Statista, a whopping 67% of worldwide Roblox users are below the age of 16, and Nike used this promotional opportunity to connect with the new generation on their level.

Nidhi Prakash, Global Director of Digital Marketing of Razer Inc. and eTail Asia 2023 speaker, discussed about Metaverse and NFTs. Prakash stated, “this space will evolve, and the key there is how can you make yourself more relevant in that space through some early pilots and experimentation. See what works and what doesn’t, and it’s very early days, and to stay relevant, you need to do some experiments. We are still not sure how we can leverage this. We are finding ways to integrate our offerings within the Metaverse or using some of the virtual properties for advertising and customer acquisition, which is something that we are toying with right now.”

Metaverse marketing schemes can sometimes be viewed as complex compared with traditional marketing channels. In order to be successful, there must be a reason for users to interact within the Metaverse and much like in-person experiences, the space is constantly evolving with new strategies and methods of engagement being developed all the time. Metaverse experiences are like successful ad campaigns - hinged on a trusting relationship built between the consumer and the brand. After all, according to this Salsify study, quality is one of the main ingredients to consumer trust, and consumers will even pay a premium for it.