Beauty & the metaverse Under construction

– by Naomi Marcoulet

Hardly a day now goes by without a company announcing some type of move in the metaverse, the much-hyped immersive parallel world where our digital twins are soon predicted to work, socialize and play. Features of this new(or not so new-remember Neal Stephenson’s book Snow Crash from 1992 and virtual world Second Life in 2003) include NFTs(non-fungible tokens), avatars, DAOs(decentralized autonomous organizations) and cryptocurrency. In a bid to keep up, companies have begun building teams and adjusting their digital budgets to learn and create strategies in the area.

However, it also seems that many brands are rushing out initiatives with a metaverse tag to jump onto the bandwagon of what seems to be the next digital frontier, without really having thought out what these projects will bring or what whey hope to achieve with them. Increasingly companies are also now calling any digital project they develop a step into the metaverse. While the space is evolving rapidly, it is still very much under construction.

NFTs

On the back of a number of high-profile successes, the market seems to be teeming with NFT launches. But the sudden hype and race by brands to launch NFTs has sparked some criticism. While brands need to explore and experiment, launching NFTs just for the sake of it will be poorly received and seen as uncreative or as a cash grab, says Cosnova Digital Marketing & CRM Director Thorsten Muhl. Mainstream consumers have also yet to be convinced of the value and utility of NFTs-some research indicates that the average consumer does not even know what an NFT is-but brands are already seeking to create more accessible initiatives. e.l.f. Cosmetics’ launch of the #CryptoCosmetics collection at prices corresponding to the real products, on the Bitski platform which accepts card payments, garnered much attention, with the NFTs selling out in nine minutes.

NFTs are about participating in communities, and enabling the communities to benefit, say Michaela Larosse Head of Content & Strategy at digital fashion company, The Fabricant. However, things are changing fast, and in the past 12 months alone, NFTs have evolved from being just about art and are now driven by utility, says Nick Pringle VP Executive Creative Director at R/GA London. “So if I have an NTF-what does it give me? What does it unlock? So that has evolved over time,” he says. There is also interest in NFRs’ capacity to validate the authenticity of digital assets, as well as to help stem the flow of counterfeit goods by applying underlying blockchain technology to physical products, comments Doug Stephens, Founder of Retail Prophet.

Virtual stores

There are big expectations that the metaverse will revolutionize the online shopping experience, and particularly in beauty where AR and VR are already in play.

Neha Singh, Founder and CEO at Obsess, an augmented and virtual reality software platform for experiential shopping, confirms the rising demand for virtual store shopping experiences that reflect more closely how consumers shop in real life. “VR and AR are more engaging shopping experiences and consumers are looking interactive, immersive experience […] whatever device abd at whatever time they choose,” says Singh.

“For brands, not having a metaverse presence in the future will be like not having an e-commerce site today, which os both unthinkable and untenable, given how consumers now prefer to shop”. The virtual store is already in action with beauty brands using them as a direct-to-consumer approach, but there is also potential for brands to partner with retailers to create a virtual store on their site, says Florence Wright, Head of Digital insights at Edge by Ascential: “I think the metaverse or some of these more virtual store environments really have potential to take the concept of omnichanne이 새 the next level, where you have got your virtual store and your physical store, whicj are working more seamlessly together for trying on products online and then buy them physically from the store as well.”

Digital goods

The concept of the virtual product is already well under way in the gaming world and on virtual platforms, such as Decentraland and Sanbox, and with the rise of companies like The Fabricant creating digital fashion, and Dematerialized’s marketplace, which sells digital fashion.

There is a growing interest in virtual products, but there has to be a use for the product, says Michaela Larosse Head of Content & Strategy at The Fabricant. “It’s not just a picture you buy and sell. For The Fabricant garments, utility is absolutely essential to what we do, because digital fashion is meant to be worn. Utility is key otherwise you just end up with only a very limited experience,” says Larosse.

With The Fabricant;s designs, for example, users can take their virtual garment into the virtual world, dress their avatar, see themselves wearing the clothing, and users can also trade the virtual product. pringle agrees, saying that one way the digital product links to a physical twins, where the digital product or experience or as a means of accessing exclusive virtual experiences. “We will see more,” says Pringle, “But brands will get more creative in what comes with that digital asset.”