Could the succeeding age of retail usher in a scenario where users participate in co-creating a brand's virtual products and storefronts? The face of virtual retail seems to be heading towards co-creativity. As the dawn of the Web3 era breaks, creativity is transforming into a new status symbol. Consequentially, brands are tweaking their virtual activations to involve creativity and co-creation alongside their traditional products.
As we witness daily, technologies like AI, IoT, and cloud computing converge to create a surge of technological advancements, fundamentally reshaping our world. This transformation whisks us into the 4th Industrial Revolution—a change more significant than the invention of the steam engine.
Parallelly, the realm of retail and brand communications is evolving and morphing. Although the concept of the Metaverse, digital spaces mirroring real-life, is not new, the destination we're moving towards today transcends mere recreational spaces. Bloomberg values the multiverse market at over $500 billion, facilitated by easy profit-sharing with co-creators enabled by Web3 and logistical convenience of operating virtual stores.
Yet, we believe we haven't reached critical mass, despite such advancements. Zuckerberg, too, has claimed that Facebook's metaverse venture, Reality Labs, won't emerge as a tangible business venture until this decade ends. Still, the propitiousness of merging a brand fans community in a digital arena, thereby harnessing its creativity and somehow integrating virtual marketplaces with loyalty programs is already visible.
Some industries are more susceptible to this dynamic than others. It's easier for media, entertainment, or fashion brands to involve consumers in co-creating and virtually commercializing products than for FMCG brands, given the specific nature of their products.
Despite the enormous paradigm shift that is seemingly unfurling, we believe agencies in the metaverse will need to uphold their fundamental function: becoming brand guardians and amplifiers. As user-generated content and prosumer involvement gain traction, agencies must hone additional roles as content curators and community facilitators while ensuring brands maintain their core essence amidst this democratization.
Internationally, the democratization of vcommerce is anticipated as more brands offer creative control to their consumers. Observing the WaveCrest group and the European association we belong to, the gap—if it exists—between our local market and the European landscape trends is minimal. But perhaps, Europe isn't as active in this domain compared to the US or Asian markets. Although Romania is experimenting with this concept with major projects like the "mall of entertainment" launched in 2022 in the metaverse by a telecom brand, significant changes will only be noticeable once Meta's Horizon Worlds becomes available for our market.
Agencies play a pivotal role in bringing innovation and power to consumers. Before we reach a scenario of digital franchised brand shops run by consumers in the Metaverse, agencies can take incremental steps to empower the consumer's voice. One approach is to encourage them to create authentic brand-related content on social media platforms. Another could be giving them the authority to decide which limited-edition products should be run.
In the context of co-creation, this implies not only curious examination and understanding of emerging tools and technologies but also proactively aiding brand owners in assessing and trying out these novel opportunities. It also entails a deeper involvement in understanding the consumer base, spotting promoters, and engaging them with impactful campaigns.
Historically, a marginal population fraction has felt comfortable creating content and expressing themselves publicly, but a shift has begun with Gen Z and the Alpha generations.
Consumer engagement is deeply ingrained in our ethos at WaveCrest. We believe that brands can attain exponential growth by multiplying experience with engagement—our mantra, represented as ROE2 (Return on Brand Equity Squared). Encouraging consumers in co-creating communication or co-managing virtual commerce spaces signifies the highest level of engagement a brand could aspire for.
Our experimentation with AR solutions for several projects, and our keen interest in the Metaverse, align perfectly with these objectives. Our strategy to become Europe's fastest-growing brand experience agency propels us to actively seek partners to fortify our capabilities, with v-commerce definitely falling within our purview under the WaveCrest umbrella.