When Facebook’s parent company changed its name to Meta, the idea of a more established “metaverse” or virtual world was born. For some of us, this is completely unimaginable. For others, the metaverse provides an entirely new possibility for a social world that is not entirely separate from physical reality.
Regardless of your opinion of this new, growing reality, it will remain – at least for now. Especially since retail giants like Walmart are pushing their brand into the metaverse.
That’s right, from the end of September, customers can access their own Walmart virtual world on Roblox, the leading gaming platform.
Why do they do it? And do they expect big returns from it? Let’s find out.
Walmart enters the metaverse
Source: walmart
A few weeks ago, Walmart announced that it was taking a step into the metaverse through a partnership with Roblox, a gaming platform predominantly used by Generation Z. With it, Walmart launched two virtual reality experiences:
- Walmart Land – Walmart represents a whole virtual community. Walmart Land offers games to win tokens and badges, a verch store, and three events: Electric Island, House of Style, and Electric Fest.
- Walmart Game Universe – Universe of Play has exciting games with many items that you can also find in person, such as products from Paw Patrol and Jurassic World. Users can also earn rewards, which they can redeem for additional avatar items.
Source: walmart
In a huge attempt to make the brand recognizable to the younger generation, Walmart’s virtual world even hosts a music festival featuring artists such as Kane Brown, Madison Beer, and Yungblud. In addition, there is an airship (virtual, of course) that drops toys, and many different options for playing.
It also has a virtual goods store that is similar to what Walmart customers might find in stores.
Read more: How the Metaverse will change our financial landscape
Why is Walmart in the metaverse?
Walmart decided to create a virtual world not only because it’s cool (although it seems to be a very popular solution among big brands). The game had two main reasons:
1. They are trying to reach out to the younger generation.
It’s understandable that Walmart has realized that they (and many other retailers) have previously completely excluded Gen Z from their marketing campaigns. Walmart CEO William White recently said that this new virtual experience is for this generation.
In turn, the idea seems to be that Generation Z will recognize the brand, which has traditionally been associated with the old demo, in a positive light.
2. The pandemic has changed the way we shop
During the pandemic, in-person purchases have dropped significantly. Online shopping, on the other hand, has skyrocketed. Even though the pandemic has abated, online shopping is still one of the number one ways to shop for many of us.
To keep up with other big names (like, cough, cough, Amazon), Walmart had to get creative. That’s what the next step offers them: a way to find a new kind of buyer where they are (or at least where Mark Zuckerberg says they will be).
How will Generation Z react?
It’s hard to say how Generation Z will react to the new Walmart universe, but Roblox’s success speaks for itself. With over 200 million monthly players, Roblox is an extremely popular platform. And about 70% of its users are Generation Z.
Gen Z is also getting used to the virtual world, and a third of them say they would like to see brands expand into the metaverse, according to research by Marketing Dive. In addition, Gen Zers have no problem spending money on gaming platforms. In fact, according to the same study, 20% of zoomers surveyed will spend their “fun” budgets on entertainment and in-game purchases in the next five years.
It may also come as a surprise to some, but according to Morning Consult research, Walmart is a favorite among Gen Zers. It ranked no. 6 when Gen Z shoppers prefer Walmart to other large stores like Target.
Given the statistics above, Walmart is making a major branding decision that will likely play in their favor going forward as Generation Z ages and becomes a dominant customer.
What other companies are doing the same?
Although Walmart was one of the first to partner with Roblox to create their own virtual world, they are not the only ones.
Apart from Walmart, you will see other big names in the Roblox world, including:
- Nike – Nikeland, Nike’s virtual world in Roblox, includes arenas and fields, buildings and games available to users. While the world is still growing, Nike has big plans to expand the integration of its products.
- Vans – Vans World, aimed at skateboarders, allows users to practice virtual skating techniques, create their own pair of Vans, and design their own skateboards.
- Gucci – Gucci launched Gucci Garden back in May 2021. Gucci’s virtual reality, with themed rooms and avatars, allows users to try on virtual Gucci clothing created in collaboration with Roblox creator Rook Vanguard.
- Sony Music – Sony and Roblox have been partners for a long time, and Lil Nas X is performing the first ever virtual concert on Roblox. Their partnership is expanding, with more (as yet unnamed) musicians coming to the platform.
- Spotify – Spotify launched Spotify Island on Roblox, becoming the first in the music space to join the VR world. The island is designed to bring artists and listeners together for interactive games. Each “island” is based on a theme or musical genre.
And this is just a small selection of companies that work with Roblox or invest in the metaverse.
For example, Google has invested a whopping $35.9 million in a private equity fund focused on metaverse projects.
Even those who work in the financial sector have invested. JP Morgan is one of the more prominent examples. They have a living room in Decentraland, another virtual reality world.
bottom line
Walmart has officially gone virtual by launching Walmart Land and Walmart Universe of Play on Roblox. In an effort to further reach Gen Z, Walmart offers virtual concerts, merchandise, games, and more.
Since Walmart is already a favorite brand among some of the younger generations, this move seems like a smart move on Walmart’s part.
Featured image: Sergey Yelagin/Shutterstock.com
