On their path of becoming the world’s largest athletic apparel company, Nike has been embracing its “Just Do It” attitude and jumping head-first into the ring. They created a cohesive cross-channels experience by integrating technologies such as AR, AI and holograms into their brand strategy – digital and in-store – which prioritized the customer journey. It was therefore no surprise when the timeless brand became one of the first to enter The Metaverse in November 2021, by implementing NIKELAND on Roblox platform.
Since then, they have already exceeded 7 millions visitors from 224 countries – and they are are determined to take this venture to the next level. First, they bought the NFT collectibles leading studio RTFKT (now Nike Virtual Studios). In March, 600 pairs of NFT sneakers were sold for $3.1 million thanks to this acquisition. Today, Nike Virtual Studios is the fastest-growing division representing 26% of the Nike Brand revenue. They then increased their marketing and ad budget by 20% across the upcoming quarter (apprx.$854 Million). NIKE now embrace branded NFTs as part of their revenues structure as the potential for big earnings in the Metaverse has a successful track record.
If you wonder why would someone spend time or money at NIKELAND? here are some the incentives offered:
– own a land where your collectibles can be displayed
– meet superstars like Lebron James and chat with him
– socialize with followers, fans and brand ambassadors…all under the same umbrella
– exclusive merch drops announcements
– buy/trade exclusive NFT sneakers models that can only be found in the virtual world (NIKE has even filed Trademark applications to protect their creations)
– mini-games you can play with other people
Nike’s latest adventures in digital transformation aren’t solely limited to virtual and digital worlds. Its real-world, bricks ‘n’ mortar stores are also becoming showcases for ways the brand is leveraging new technology. It would not be surprising to see their “Cryptokicks” come to life in the real world and assist to more cross marketing between both worlds. At this point in time, anything is possible.
It will be interesting to see how their competitors will follow given NIKE’s significative investments and efficiency where the real rivalry will be creativity. One thing for sure, they have proven to the world that from a business/economical standpoint, Metaverse does works.
What do you think?
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