Survey Reveals the Metaverse's Expansion and Business Potential (Part 2)

• Survey Reveals Metaverse Expansion and Business Potential (Part 1)

The metaverse is gaining momentum, increasingly referenced across various scenarios in both daily life and business. Dentsu Group conducted its " 2022 Metaverse Awareness Survey " from August to September 2022. Awareness of the metaverse is rapidly increasing even among general users, and the market size is expected to continue growing.

This article features an interview with Mr. Shusuke Morioka, Mr. Makoto Kanbayashi, and Mr. Shimon Tsutsumi from Dentsu Group's "XRX STUDIO," who were involved in the survey. Part 1 introduced the survey overview and their perspectives on the metaverse's expansion as seen in the results. Part 2 explores the new culture the metaverse is creating and its future business potential.

Fashion and Spaces in the Metaverse Become Sources for the Real World

Q. The survey revealed that alongside growing awareness of the metaverse, users' annual spending on in-app purchases and overall usage costs increased by 1.6 to 2.2 times compared to the previous year. How do you interpret this "spending behavior" within the metaverse?

Morioka: I believe "digital fashion" accounts for a significant portion of the spending. This refers to avatars, skins, items, and other assets used on metaverse platforms. A notable finding from this survey was that younger women, in particular, are using the metaverse primarily to enjoy fashion.

Tsutsumi: It was fascinating to hear about using digital fashion as inspiration for real-life outfits. Considering this insight, wouldn't it be useful for developing new features and services—like thinking, "Adding this kind of functionality might attract more young female users"?

Morioka: Among younger generations, new usage patterns are emerging, such as using spaces created on the platform for ideas on interior design and layout for their actual homes – trying things digitally first and then recreating them in real life for enjoyment.

On the other hand, among those in their 40s and 50s, many expressed a desire to "enjoy non-everyday spaces" like outer space or fantasy worlds. Participation rates were also high for spaces that recreate real cities, such as "Virtual Shibuya."

Q. The idea of young people "using the metaverse to think about their real selves" is very interesting. Previously, Mr. Kanbayashidescribedthe metaverseasa "space premised on communication." Does user-to-user communication also play a role in the rise of digital fashion?

Kanbayashi: Yes. I think many people have always held the view that "there's no need to link your online self to your real self." Within that context, a movement is clearly emerging in the metaverse where people are creating online personas that are completely different from their real selves, including their appearance and style. This tendency is particularly strong among users who do VR editing; they live in the metaverse as the person they want to be.

Simultaneously, a trend emerging mainly among teens, as Morioka mentioned, is "recreating their ideal self in the metaverse and then using that look as inspiration for their own fashion." They communicate in the metaverse wearing their ideal outfits, and if they like them, they incorporate those styles into their real-life fashion. Furthermore, many people view those they meet in the metaverse not just as "online friends," but as an extension of their real-life friendships. If they share common interests, they might meet up at offline gatherings, creating another flow from virtual to real.

Morioka: Regarding communication, while SNS only allows text, images, and video exchanges, there were positive opinions about metaverse services enabling "three-dimensional communication through your own avatar." A woman who became hooked on the metaverse during the pandemic seems to enjoy communication there, paying attention to her avatar's style and complimenting each other's avatars as if chatting with friends in real life. This trend is very interesting.

From Business Optimization to Product Promotion: How to Leverage the Metaverse for Business

Q. While we use the term "metaverse" broadly, diverse cultures and communication styles are emerging depending on generation and the services used. Given this, how do you see the metaverse being leveraged for business in the future? What are your thoughts on its potential and scalability?

Morioka: Over the past year or two, we've seen a rise in companies and brands entering the metaverse. However, many who jumped in thinking "Let's do the metaverse!" may have ended up with ghost towns. While the first year or two might have focused solely on media value and PR value, by the third year, results and performance become essential. It seems essential to thoroughly examine the key points to consider when building brand spaces and worldviews, learning from successful cases.

Amidst this, I still feel the digital fashion sector holds significant potential. There's an example of a metaverse platform partnering with a New York fashion school to launch a new digital fashion course, even creating the title "Digital Fashion Designer." When considering how brands should enter this new communication space, avatars, skins, and items will undoubtedly be key. How companies, including those outside the fashion industry, can enter this digital fashion space will likely be a key point moving forward.

Q. I see. Beyond fashion and entertainment, I imagine many companies are considering entering the metaverse for their own businesses. What new business areas could leverage the metaverse?

Tsutsumi: For instance, if companies start thinking, "It would be great if this part of our operations could be done in the metaverse," and use it to optimize specific aspects of their work or projects, the possibilities could expand significantly. If it becomes something companies can easily adopt internally and it becomes commonplace in society, business could accelerate even further.

Kanbayashi: One area I'm particularly watching is the use of the metaverse for B2B sales. I believe it can be especially useful for explaining complex concepts that are difficult to convey with slides alone.

I heard one company started using the metaverse to introduce their own machinery used in manufacturing parts at factories. Areas that are hard to grasp from documents alone become clearer with three-dimensional explanations in the metaverse, and it's also an interesting experience. I think this is an excellent example, and I expect such cases will increase going forward. We definitely want to increase our opportunities to support such initiatives.

The metaverse is gaining momentum with the emergence of various platforms and services. Driven by technological advancements and diverse user applications, unique economic ecosystems and new cultures are continuously emerging. We're also seeing shifts in the relationship between the digital and physical worlds and in communication methods, suggesting new business opportunities lie dormant within this space.