Industry Analysis

Back in October, Facebook announced their new company brand, Meta, officially introducing the concept of the metaverse to the wider public. In their announcement, Facebook, now Meta, described the metaverse as “a hybrid of today’s online social experiences” that can be expanded into three dimensions and the physical world.

The metaverse consists of many different virtual worlds, where people meet, work, live, play and interact with one another through their virtual avatars. It also presents new ways for influencers and brands to engage and interact with their audiences. Highly-regarded musicians such as Travis Scott, Lil Nas X and Ariana Grande have all organised major live virtual concerts in popular videogame universes such as Fortnite and Roblox, reaching millions of live viewers in the process.

For travel retail businesses, the metaverse may well become the next big white space to leverage their services and elevate experiences for customers. A number of forward-thinking fashion labels – including Louis Vuitton and Gucci – are already taking advantage of this opportunity with B2C campaigns that have proven highly popular and commercially successful. In the case of Louis Vuitton, the brand launched a limited-edition capsule collection in collaboration with the League of Legends video game series, which reportedly sold out in Louis Vuitton’s European online shop in less than an hour. Since both Louis Vuitton and Gucci are major players in travel retail, it seems to be only a matter of time until these brands, and many others, take the travel retail industry into the world of the metaverse as well.

The pandemic is undoubtedly an accelerator of the arrival of the metaverse, with many people moving to the digital realm for business and leisure as a result of COVID restrictions. At the same time, we have seen a rise in the number of more tech-savvy, younger consumers who now expect a seamless digital experience wherever they go – including on their travels. A recent study from Airport Dimensions revealed the majority of Gen-Z and Millennial travellers prefer using a single mobile app to order shopping and food with flexible delivery options at the airport. Imagine having a virtual duty-free world where customers – through their virtual avatars – can stroll, browse and shop for however long they like, without worrying about missing their flight! With the arrival of the metaverse, that idea is now not so far-fetched.

Once a niche concept, the metaverse is presenting seemingly endless possibilities for brands, retailers, airports and airlines to improve communications between themselves and their customers. In my next insights article, I’ll outline the ‘dos and don’ts’ of the metaverse and how travel retail companies can use this to maximise their business potential – stay tuned!