Nike’s push into being metaverse companies is an growth catalyst.
Metaverse Companies – What is a Metaverse?
Firstly , “Metaverse” is a term used to describe the new breed of platform-based virtual worlds that users explore and interact with, as avatars of themselves.
What are Metaverse Companies?
Firstly , the company launched a Metaverse Studio, and is hiring for metaverse-specific roles based at its Beaverton, Oregon HQ.
Nikeland is an Nike’s purpose-built metaverse company . Essentially , which uses the Roblox platform to allow its fans to meet, socialize.
Additionally , it helps to take part as well as engage with a whole range of brand experiences.
Development of Nike as a Metaverse company
Further , Nike is leading the way when it comes to brands demonstrating that a “sell the lifestyle ” ethos can work just as effectively in the digital world .
In this way , it has successfully transplanted its ability to cultivate an aspirational mindset into the virtual domain.
Both in terms of desirable , as well as fashionable products that users can own and through competition.
Secondly , the Metaverse is a vision of what many in the computer industry believe is the next iteration of the internet.
Technologies of Metaverse
Chiefly , a single shared , immersive , persistent ,3D virtual space where humans experience life in ways they could not in the physical world.
Some of the technologies that provide access to this world , such as virtual reality (VR) headsets and Augmented reality (AR) glasses ,are evolving quickly.
Other critical components of the metaverse ,such as adequate bandwidth or interoperability standards are probably years off or might never materialize.
Nikeland – Metaverse Companies
Essentially , Nike Inc (NKE.N) has revealed a virtual world modeled after its headquarters on video game platform Roblox Corp (RBLX.N) .
Thereby , becoming one of the first big brands to enter the “metaverse”.
Additionally , the digital space, called “NIKELAND”, allows players to outfit their avatar with special Nike products . And then it is free for anyone to visit on Roblox.
Further , visitors can currently play “Tag”, “The Floor Is Lava” as well as , “Dodgeball” on the platform .
Additionally , it also lets creators design their own mini-games from interactive sports materials to put simply .
Nike’s entry in Metaverse
Moreover , sports manufacturer Nike has always been at the forefront of digital transformation .
Additionally , Artificial Intelligence (AI) , E-commerce , as well as , in store experimental technology have been integral to the brand’s strategy for many years.
Chiefly , this is not the brand’s first foray into the virtual world.
Firstly , in May 2019, the Jordan brand partnered with Fortnite, where characters wore Nike-branded sneakers.
Nike has also had several collaborations with the online gaming platform Roblox.
Nikeland is Nike’s purpose-built metaverse space that uses the Roblox Platform.
In addition to , allowing its fans to meet , socialize , take part in promotions. Additionally , engage with a whole range of brand experiences.
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Access
First, on 13 December 2021, Nike the largest multinational athletic footwear and apparel brand in the world, stepped deeper into the “virtual” world and agreed to acquire RTFKT .
Mainly , a producer of custom-designed sneakers for video games.
Tech
Chiefly , RTFKT creates virtual custom-made-designed sneakers using blockchain authentication .
As well as , AI to produce digital artifacts that can be sold, traded, or gifted . thereby enabling customers to enjoy wearing their shoes in real life . As well as , in their online avatars.
Mainly , Nike shall provide funding support to RTFKT to further explore possibilities presented by the Metaverse simply put .
Metaverse – Nike Brand Awareness
Firstly , it could present an excellent opportunity to grow brand awareness and test ideas for new shoe designs.
Secondly , in Nickeland, Roblox users can hang out with others, play mini-games . As well as , create their own experiences using interactive sports materials.
Further , according to Nike , 7 million, visitors have spend time in Nikeland since it launched in November 2021.
While there ,they have been able to enjoy celebrity appearances from sports stars to , celebrities , including LeBron James .
As well as buy exclusive digital products to decorate their avatars with.
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Metaverse – Roblox
chiefly , Roblox is a pure-play metaverse stock . Additionally , it offers lot of growth potential. Further it’s revenue increased 102% year over year in the third quarter .
But the risk for investors is mounting losses on the bottom line to put simply .
It’s net loss widened through the first nine months of 2021 to $357 million compared to $197 million last year to explain .
Essentially , part of that loss stems from higher costs for content creation through developer exchange fees .
Actually , it was Roblox’s largest operating expense through the first three quarters of 2021.
Nike Growth
Meanwhile, Nike is no slouch of a growth stock. Additionally , the shares have more than tripled in value over the last five years.
Further , unlike Roblox, the sneaker giant has been consistently profitable over the last decade.
Moreover , Nike’s return on invested capital has increased from around 20% to 31% over the last 10 years.
Additionally , Nike just announced its own branded virtual world coming to Roblox called Nikeland.
Further , it could present an excellent opportunity to grow brand awareness as well as test ideas for new shoe designs.
Additionally , in Nickeland , Roblox users can hang out with others, play mini-games . As well as , create their own experiences using interactive sports materials.
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Nike World
Firstly , the digital items are not restricted to Nike world and can be worn as their avatars . Especially, to travel to other Roblox environments .
Essentially turning the visitors into digital brand ambassadors.
Further , they can also test their reactions and strategy skills with a number of games. Mainly , with the opportunity to win even more products and rewards to put simply.
Ultimately , each visitor to Nikeland also becomes a custodian of their own “yard” .
Eventually , a personal space within Nike world , that can be used to show off their collective and decorated to suit their personality.
NFTs and Web 3
Firstly , another huge opportunity is the NFT market . Additionally , where unique collectibles are sold as digital tokens . Thereby , using blockchain technology to validate ownership, like cryptocurrency.
Further , Sales of NFTs exploded to a record $2.5 billion in the first half of 2021.
According to Morgan Stanley, chiefly , demand for NFT collectibles could expand the addressable market for luxury goods by 10%.
Additionally , this could be beneficial to Nike . Further , its limited-edition sneakers already command massive prices on second – hand marketplaces like StockX.
Mainly , Nike was also very quick to capitalize on the trend of NFTs. Further , these are tokens that live on a blockchain . And then , can be used to create digital assets that are essentially unique and one-of-a-kind.
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Crypto Kicks
Chiefly , Nike demonstrated how keen it was on the idea of NFTs in December last year.
Further , in 2019, Nike filed a patent for a new kind of NFT called Crypto Kicks .
Essentially , which are digital representations of a shoe assigned a “cryptographic” token.
Thereby , it’s not hard to understand the appeal of the studio to the sportswear manufacturer . Especially , when you learn that it managed to sell 600 pairs of NFT sneakers in just 6 minutes , for a total of $3.1 million.
Chiefly , this is an clear indication that Nike clearly understands the value of personalization to consumers .
Additionally , today particularly younger millennials and especially , Generation Z many of who value unique , one-of-kind or customized items over identical mass produced goods.
Bottom Line
Firstly , in a world where consumers say that having a positive experience with a brand is more important .
Essentially , than factors such as price when it comes to making buying decisions , simply put .
Further , Nike is hoping that technology will create memorable shopping and leisure experiences . That will further , build strong bonds between customers and the brand.
Lastly , this will mean they will be more likely to look for the famous swoosh logo next time they are in the market for sporting goods of the real or virtual ones to put simply.
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FAQs
What metaverse is Nike in?
Firstly , Nike already has a metaverse space on Roblox – Nikeland .
Where users can buy and wear virtual goods using not cash or crypto but in-game currency. Launched in November 2021.
Does Nike has an NFT?
Apparel giant Nike has launched a new Web 3 platform called Swoosh that will offer Polygon -based NFT products.
The firm acquired Web 3 studio RTFKT in 2021 and released digital Nike sneakers as Ethereum NFTs in April.
Is RTKFT a Nike?
Nike owned blockchain sneaker startup RTFKT. Studios announced the launch of Cryptopunks IRL .
A sneaker collection that brings to life RTFKT vision to merge the digital and physical worlds.
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Is Nike investing in the metaverse?
Nike Inc. is acquiring a virtual collectibles company as it dives further into the metaverse. The sportswear giant agreed to buy RTFKT .
A business founded in 2021.that creates digital products like sneakers and uses blockchain technology to ensure authenticity.
How much is Nike worth ?
Nike’s NFT related projects have made over $185 m. in revenue positioning it as the biggest earning brand from NFTs.
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