When Facebook announced its rebranding to Meta Platforms, many people were left wondering what the metaverse is, leading to a spike in Google searches for the term at the end of October. But for brands and retailers, plans to capture consumers’ attention — and dollars — within the virtual world have been brewing for some time.
Last week, for example, PYMNTS reported that Nike has filed seven new intent-to-use applications with the U.S. Patent and Trademark Office for several notable Nike trademarks, including “Just Do It,” “Air Jordan” and the company’s “swoosh” logo, among others. Nike said it plans to use the patents to sell virtual goods and entertainment services such as downloadable virtual footwear, clothing, headwear, bags, equipment and similar items.
Read more: Nike Files for Virtual Trademarks for the Metaverse
Other brands that have launched virtual merchandise include Balenciaga, which dropped a series of new outfits in Epic Games’ Fortnite in September; Vans, which launched a skatepark and shop within the Roblox metaverse; and Gucci, which saw someone spend over $4,000 for a virtual handbag earlier this year.
David Ripert, co-founder and CEO of Poplar Studio, told PYMNTS that the metaverse is something brands need to take seriously, especially as tech companies make large investments in the technology. “A brand needs to be ready to deploy their products within those environments,” he said, adding that “it’s all crossing over, the physical and the virtual.”
See also: Fashion, Apparel Brands See Increasing Opportunity in Metaverse
New Name, Same Problems
But while brands have been ready to enter the virtual worlds created by Roblox and Epic Games, fewer have committed to offering digital products in Meta’s Horizon Worlds. Part of this could be because the California tech giant’s virtual platform is still in beta testing, but brands may also be hesitant to associate with Meta, given the company’s public relations problems over the past month.
A series of internal documents provided by a whistleblower to The Wall Street Journal and other news outlets around the world accused Facebook of putting profits before safety and ignoring issues with several of its products, such as Instagram’s harmful effects on teenagers’ mental health and the spread of misinformation that led to the Capitol riot on Jan. 6.
Related news: After Whistleblower and Facebook Outage, Zuckerberg’s Fortune Drops $6B
In a conference call with analysts last month, CEO Mark Zuckerberg said the leaked documents are “a coordinated effort … to paint a false picture of our company.”
“It makes a good soundbite to say that we don’t solve these impossible trade-offs because we’re just focused on making money,” he added. “But the reality is that these questions are not primarily about our business, but about balancing different difficult social values.”
The Physical Realm
Meta also sees an opportunity in setting up brick-and-mortar storefronts to sell its hardware and, naturally, its vision for the metaverse. Insider sources told The New York Times that the company formerly known as Facebook is planning physical stores to showcase merchandise from its Reality Labs division, including virtual reality (VR) headsets and augmented reality (AR) glasses.
Read more: Facebook’s Metaverse Could Be Accompanied by Physical Stores
Additionally, beyond the purely digital metaverse, Ripert told PYMNTS that many retailers are starting to think about creating a “store of the future” in which customers can use AR glasses to interact and engage with displays or view promotions as they pass storefronts on the street.
“And if you think about it, that changes the game … because now you’re walking around the streets into interconnected cities that are overlaying content information all around you,” Ripert said.
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