Brand Engagement in the Metaverse: November 2022

Nike’s Web3 Marketplace

Following its November 2021 launch of Nikeland on Roblox and December 2021 acquisition of US non-fungible token (NFT) studio RTFKT, Nike is evolving its metaverse strategy by focusing its Web3 efforts on co-creation. Its new marketplace .Swoosh is billed as a platform “designed to give you the opportunity to create the future of Nike”.

Currently in beta mode (registrations to join opened on November 18), members will be able to create virtual products in line with brand-set design briefs. They will then vote on the best items to form the first co-created digital collection – comprising sneakers, apparel and accessories – which will go on sale on .Swoosh in January. Although Nike does plan to develop a degree of interoperability (the ability to port NFTs across proto-metaverse environments) – particularly between RTFKT and Nikeland, but also on external platforms – details have not yet been disclosed.

Members will not only be able to collect these products, but also trade them. Notably, they’ll be sold in dollars rather than cryptocurrency (although transactions will be recorded on the Indian blockchain Polygon). This decision is likely to have had a twofold motivation. First, it opens up access to non-crypto-natives – a tactic already adopted by British department stores Harvey Nichols and Selfridges. Secondly, it allows Nike to circumnavigate the volatility associated with digital currencies – most recently seen in the FTX collapse.

In 2023, Nike will also begin to host competitions where members can co-create virtual products with the brand’s in-house designers, earning a percentage of royalties on sales. It’s an evolution of a strategy previously employed by smaller players, such as US streetwear brand The Hundreds. 

L’Oréal’s Interoperable Avatar Push

L’Oréal’s partnership with Estonian metaverse start-up Ready Player Me – which offers customisable avatars for use in over 4,750 games and apps – saw them launch 10 characters on November 15, in conjunction with 3D designer and developer Evan Rochette.

The fashion giant’s sub-brand L’Oréal Professionnel released five hair-centric looks, while US beauty label Maybelline (also a subsidiary) created five cosmetics-led variations. Rather than replicate everyday choices, all the digital counterparts push the boundaries of hair and make-up possibilities. One example includes violet hair in spikes of various sizes, with neon blue lips and ultra-detailed graphic eye make-up to complement the styling.

Tuvalu’s Identity Preservation

At the UN’s Cop27 conference (November 6-18), Tuvalu – an island nation in the South Pacific –revealed it’s planning to recreate itself in the metaverse to preserve its heritage and identity (the country is forecast to be underwater by the end of the century). However, details of the project are yet to be announced. Foreign minister Simon Kofe spoke to delegates at 2021’s Cop26 about the nation’s prospects while standing in several feet of water to emphasise its precarious position.