COMMERCE RELOADED : WHO WILL BUID THE FUTURE ?
For almost 3 years now, the world of Web3 has been in full bloom. Around Web3, initiatives by brands are multiplying. Of the top 100 global brands, 43 launched Web3 initiatives in 2022. These initiatives have generated more than $100 million in revenue through the sale of NFTs, non-fungible tokens that represent an object, to which a digital identity is attached. Many brands have launched to increase their awareness, while others have given in for fear of missing the Web3 train.
Community power is essential to the success of Web3 projects. Brands and banners must have the ability to deploy the right storytelling needed to create a community. This is the first link between the brand and its audience. In this sense, the world of the Web3, associated with the metaverse, will allow the creation of paradigms without limits, in which imagination and creativity will be able to express themselves without constraint or friction, exceeding the notion of time and space.
As part of this storytelling quest, many brands have partnered with NFTs collections to benefit from their content, codes, history and community. The clothing brand Wrangler has teamed up with the Deadfellaz collection, the clothing distributor Kith with Invisible Friends, Gucci and Puma with 10KTF, Gap with Dogami, or Clinique with NFP. These partnerships make it possible to legitimise traditional brands in the world of Web3, but also to make it credible to the general public.
For their part, NFT brands then become credible and can become established in the traditional economy. It is very likely that some of them will become commercial players in the coming years, especially in the world of fashion.
The Web3 will impact a multitude of sectors and redefine the customer relationship in the coming years. But embarking on the Web3 in 2023 means accepting failure. You have to have a willingness to learn, everything is still under construction. Brands must therefore go with an open mind. The best way to understand what Web3 can involve in tomorrow’s business is to experience it on your own.
Bienvenue au « in-vehicle commerce »
According to a McKinsey study, nearly 95% of new cars sold worldwide will be connected by 2030, compared to around 50% today. Mobility is now conceived in a multimodal and connected way, making software the vector of a profound transformation from the world of the automobile to that of the serviciel. Industry players need to define important choices about the technologies installed in the vehicle: do we have to make deals with technology giants, or become a software company? In this context, in-vehicle commerce is emerging. 600 million connected vehicles are expected to generate $537 billion in transactions by 2030.
In particular, vehicle payments are expected to reach $1 billion in 2023, up from less than $100 million in 2020.
Today, car manufacturers are accelerating the development of on-board payment services to take advantage of the emergence of on-board trade.
At the NRF 2023, for example, Qualcomm offered its Snapdragon-based in-vehicle commerce solution, with an offer allowing the driver to purchase different services or products according to his location.
When trade becomes omniverse
Time compression will impact tomorrow’s consumption. This notion comes from a study by the University of California that measured that video game players in virtual reality had a loss of sense of time. Overall, for these people, time passes faster in virtual reality than in reality, with an estimated difference of +28.5% compared to reality. According to Gartner, by 2026, each individual should spend 25% of their time in immersive or metaverse virtual ecosystems, whether for training, studying, socializing, consuming or entertaining.
By combining time compression data with the rise of the metaverse, it is possible that the consumer of tomorrow will quickly find himself in a “time consumption impasse”. The time allocated to its consumption could be reduced, which will open up the concept of «ambient retail» advocated by the Exchange for several years.
The fantasy of the smart fridge then tends to finally become a reality. Samsung has, for example, launched a new refrigerator that allows ordering on Amazon while watching recipe ideas on TikTok. The social network influences up to 60% the purchases of the younger generations. To date, this may seem very gadgetry, even useless, but with the advent of ambient commerce, it is more than likely that some consumers will be tempted by this new consumer medium. Connected mirrors or the multitude of sensors such as connected watches are new channels to promote more and more personalized consumption. The home becomes a real toolbox for tomorrow’s business.
Regarding the physical store, it has become a hub for data collection, like a website. For brands, it is a matter of being able to determine which products to sell, how to sell more, how to attract the attention of consumers, how to generate traffic in the physical store.
In parallel with this quest for efficiency, the store is transformed into a media in its own right, just like in the streets of New York or Paris. The beginnings of a trade mixing virtual and real worlds are thus beginning to emerge, like Nike who opened a door to the Nikeland space on Roblox, within his shop on 5th Avenue in New York.
The store becomes a gateway for omniverse commerce. He will have to understand the codes of gaming and metavers, while keeping in mind a logic of efficiency. During this decade, it will continue its transformation, getting closer to e-commerce sites in its operation, to become a hybrid place between virtual and real. The 2040 store will also allow consumers to reconnect to the real and create social links: it will be the hub of multiple dimensions of consumption and entertainment.
Generative artificial intelligence, new Eldorado?
New forms of so-called creative or generative AI, which do not require special knowledge in coding, could take over, guaranteeing more creativity. Since November 2022, a media surge has surrounded the intelligence generator ChatGPT, the first product of the American private laboratory OpenAI. With 100 million users in less than two months, it’s hard to miss this fascinating and terrifying tool at the same time.
Other artificial intelligences such as Midjourney, Stable Diffusion or Dall-E allow anyone to create unique and hyperrealistic images, either on the basis of an image, or by simply typing a few words in a text box. The more precise the description, the more detailed, including for example texture, color, size, style, the closer the rendering will be to the initial query. This descriptive query is called “query” or “prompt”. These new AI generative, over time, are able to design new products, but also shopping centers or concept stores by integrating the charter of manufacturing constraints. Every day sees the arrival of new generative AI solutions for businesses or the general public.
If the Chinese fast fashion brand, Shein, is already using AI to anticipate trends, predict patterns and changes in consumer demand, it could further accelerate the creation of new models with these new tools. For their part, marketplaces were quick to study how they could integrate ChatGPT into their offerings. Recently, Chinese fashion retailer JD.com said it would launch a tool similar to ChatGPT.
Last month, Amazon CEO Andy Jassy said his company has been working on a ChatGPT-like tool for a long time.
Shopify recently unveiled AI tools, in partnership with OpenAI, to help vendors and merchants write product descriptions. And finally, Klarna has recently integrated ChatGPT to help and guide consumers in their product search.
Generative AI is clearly becoming the best friend of the marketing departments!
