How new retail metaverse shops setting up could change the retail market
There is a well-known saying when buying property “Don’t wait to buy real estate. Buy real estate and wait.”
Well, it now appears that this saying also applies in the virtual universe or metaverse. Still very much in its infancy, this is the immersive world. Online space where cartoon-like 3D avatars of ourselves, can walk around, talk and interact with others. This can typically be accessed by VR goggles.
Meta formerly known as Facebook is convinced that the Metaverse will be the future of the internet. Mark Zuckerberg thinks that eventually many will work, play and shop in the metaverse. In other words through an avatar we will do so. In addition, more and more companies are buying into metaverse spaces. Companies like Gucci, Adidas, Louis Vuitton, Burberry, Samsung, Nike and institutions like JP Morgan and HSBC.
What is planned by the investors
Investors and Retailers at this point are still betting on what Metaverse will be the biggest. But this will probably be cross-platform. The biggest Tech companies have created the Metaverse Standards Forum, for this exact reason.
A Hong Kong based businessman Adrian Cheng bought land in The Sandbox Metaverse. Cheng says,”what makes a location powerful is its network effect. The value of something increases the more people use it”.
Andrew Kiguel, an Canadian entrepreneur, is gambeling on Decentraland. He spent $2.4m on lands in the metaverse. These will be used for fashion events and sales. Ideally he will rent out the spaces to retail shops in Decentraland.
How much does land in the metaverse cost?
According to a report from RepublicRealm, which tracks metaverse-related projects, the average price for a parcel of land is $12,000 on average. This is across the four major platforms doubled during a six-month period last year. Just like in the real world, location on the map can significantly impact property prices in the metaverse. For instance, the highest sale was in The Sandbox for around $4.3 million.
To sum up the potential in the metaverse and blockchain technology is there. Even if the prices vary greatly and with the current volatility in the markets. Once cross platform accessibility is provided and the adoption to everyday life it is sure that this will greatly impact society.