From retail giants to banking institutions, more and more firms are foraying into the metaverse sector

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After Facebook rebranded itself as Meta Platforms and announced its foray into the virtual world, the move ignited a ferocious rush from brands across industry verticals into the metaverse. Over the last two years, the Web3 space has become increasingly diverse in its offering, ranging from NFT sellers to video games, and shopping in the virtual world, among other applications. While luxury fashion brands have rushed to create their presence in the metaverse initially, now more and more players across other industry verticals are foraying into the sector. These include leading retail giants such as Walmart and banking institutions such as DBS.

• In September 2022, Walmart announced that the firm is foraying into the metaverse sector with two experiences, aimed at younger shoppers, on Roblox, the online gaming platform. The two experiences, Walmart Land and Walmart's Universe of Play, are part of the firm's strategy to reach more and more shoppers. Notably, the firm's foray into the metaverse sector will feature various games, music festivals, toys, and a store for virtual merchandise.

Earlier in 2022, the firm also filed for trademarks related to the metaverse. This indicated the firm is getting interested in making and selling things in the virtual world. Some of the trademarks also indicated that the firm might offer its users virtual currency and NFTs. Notably, its metaverse experiences on Roblox will serve as the testing ground for the firm in the virtual world.

Currently, the firm will not be generating any revenue from its immersive experiences. The games will allow users to earn tokens and rewards which can be used for virtual merchandise. In the metaverse experiences, the firm had included brands such as Skullcandy due to their popularity among younger audiences. In the future, Walmart can charge these brands for inclusion in the metaverse experiences, thereby driving additional revenue for the firm.

Along with Walmart, a number of banking players have also forayed into the metaverse sector in 2022. For instance,

• In September 2022, DBS, the largest bank in the Southeast Asian region, became the first banking institution to foray into the virtual world. Notably, the firm entered into a partnership with The Sandbox to create an interactive metaverse experience. Under the strategic collaboration, DBS is acquiring a 3 x 3 plot of land in The Sandbox metaverse.

Some of the other banking institutions that have forayed into the metaverse sector include JPMorgan, Standard Chartered Bank, and Fidelity Investments. The metaverse sector is still evolving and these banking firms are exploring ways to interact and engage with customers in the virtual world. Over the next three to four years, the metaverse technology can change the way banks interact with customers, employees, and partners. Consequently, the investment in the space can lead to fruitful results for all of these players from the long-term perspective.

Over the next three to four years, more and more players across industry verticals are expected to foray into and experiment in the metaverse. This is projected to lead to more strategic collaborations and investments in the space from the short to medium-term perspective. Currently, fashion firms are pouring billions of dollars into the space, as they seek to lure customers to their brands. As innovative use cases continue emerge in the metaverse, TechInsight360 expects more money to flow into the virtual world, thereby driving competition, innovation, and growth in the sector.