Retail Management
Project Proposal
Metaverse impact on retail
Will the metaverse change the time proof brick and mortal retail
store?
Submitted By Sattyam Bhatt
(PGPBL/03/048)
Metaverse future impact on retail
Traditional brick and mortar shops are embracing the concept of Metaverse. There is a creative
aspect of this where new creative people are creating designs using their digital design
technology. It is expected that Gen Z, millennials and Gen X consumers expect to spend four
to five hours in the metaverse in the next five years. A lot of fashion brands including luxury
brands like Gucci, Louis Vuitton, and Burberry have their stores in the metaverse where the
users in the form of a digital avatar can buy clothes and accessories for their avatars using real
money. The items purchased from these stores can only be used only in metaverse and the real
life version of the item would not be given. A lot of retail brands are embracing the concept of
setting of metaverse footprints mainly because:
1. There are massive margins on the items sold on metaverse.
2. Metaverse is a massive secondary market because when an item is sold in secondary
market it is recorded on blockchain and since the company knows that ownership has
changed a part of the royalty can be charged by the company.
3. There is no inventory cost or overhead costs in maintaining the items in their stores.
4. These stores also serve as digital experience center where a user can try the clothes on
its digital avatar and make the similar item purchase in the real-world store.
Thus, we see that metaverse has immense possibility and profitability in the metaverse and
with the adoption of metaverse by the new age customers the brands are bound to follow.