Connecting with a new generation of customers

Digitally-native Gen Z and Millennials are at the front line of this revolution. A recent study from Squarespace and The Harris Poll found that more than 60% of them believe that how you present yourself online is more important than how you do in real life. “There’s a lot of ways to show up on the internet—there will be a lot of different ways to show up in the metaverse,” says Ben Hughes, VP of creative at Squarespace. “As the metaverse continues to grow, it’s a place where you’re totally in control of how you present yourself, at a moment where how you present yourself through digital channels is becoming the most important thing”—not to mention a potentially lucrative one. Forward thinking brands are already jumping at the opportunity, offering up digital versions of their products to satisfy Gen Z’s craving for self-expression. Iconic denim brand Levi’s experimented with a line of clothing on Snapchat. With a predominantly Gen Z audience on the platform, the partnership allowed the brand to connect with a new generation of Levi’s fans in an authentic and personalised way.

As part of their Air Matte collection launch, NARS introduced a digital avatar in collaboration with Zepeto, an app specialised in the creation of avatars for the Metaverse. Playing on the need for self-expression and gamification, the concept allows NARS to engage in a personal way with their customers and leverage the power of communities.

Where people go, brands follow

Because the Metaverse brings a new dimension to the Internet, brands and businesses have no choice but to consider their current and future role within it and how it relates to their audience. Whilst the first wave of consumer engagement in the metaverse has tended to consist of a route one approach, the translation of real-world products into virtual spaces, brands are beginning to recognise the potency of creating “virtual first” products and services. The key to gaining a competitive advantage is surprisingly ‘old-school’. Creativity. In the Metaverse, the possibilities for creativity are endless. Why? Not only have marketing expectations not yet been set, but the laws of physics simply don’t apply. By thinking “virtual first,” we can start to see how these spaces become highly experimental, creative and valuable for brands. This represents an incredible opportunity for brands to reinvent themselves in a way they couldn’t achieve in the real world. In short, anything is possible.

What does this mean for travel retail?

Travel retail is at a turning point. Driven largely by covid, the channel is going through its very own digital transformation and has the opportunity to redefine itself as a global consumer recruitment channel (see our previous piece on this subject: Omnichannel is Dead. Long live Omnichannel. However, to successfully reach a new generation of customers, brands in travel retail need to rethink their outdated customer acquisition strategy. It’s no longer enough to add digital customer engagement and gamification to a brief. Brands need to think about a persistent ‘virtual world’ experience, an engagement of customers that transcends channels, creating long-lasting and authentic relationships during their entire life cycle. If the realisation that 83% of global consumers believe the future of shopping is hybrid makes you feel woefully unprepared for our fast-approaching and inevitable future, maybe you should have chosen the blue pill. But you didn’t; you cannot ‘unsee’ the metaverse. It’s time for you to forget real-world limitations and embrace a future without limits. If you’d like to speak to one of our experts about what the metaverse might mean for your brand, and learn more about how CircleSquare are the perfect agency partner to help guide you through this complex new world, simply chose the red pill and give us a call.