hold arrow

Consumer Brands Push onto the Metaverse

1 min read · 140 views Bong-Geun Choi Oct 25, 2022

Consumer brands are increasingly dipping their toes in the metaverse pool.  Most recently, Walmart introduced two new metaverse strategies.  While still experimental, these forays may provide a new medium for brands to interact with their customers and gain the attention of new and likely younger customers.

 

How are some consumer brands embracing metaverse technologies?

 

Walmart Introduces Two Metaverse Strategies

Walmart is launching two metaverse strategies on the mega-platform Roblox – Walmart Land and Walmart’s Universe of Play.[1]

 

Walmart Land will include a virtual store of merchandise for your avatar.  It will also include a Ferris wheel to give users a bird’s-eye view of the digital world and offer unlockable tokens and badges that can be earned in various games and competitions.  Walmart Land will debut with three major experiences:

  • Electric Island – A music-inspired section with an interactive piano walkway, a dance challenge, and a DJ booth
  • House of Style – Offering fashion and cosmetic products, a virtual dressing room, style-posing competitions, a cosmetics obstacle course, and a roller-skating rink
  • Electric Fest – Concerts and other performance-based events 

 

Walmart’s Universe of Play will feature the year’s best toys.  This world will include:

  • Immersive games – Users can participate in five new immersive games
  • Rewards – Users can collect virtual toys to earn coins to redeem virtual merchandise (verch)
  • Virtual adventures – This area will feature e-mobility items like a hoverboard

 

Walmart has indicated that it will use Roblox as a testing ground as it considers moves in the metaverse and beyond.

 

Roblox’s user base has jumped from 32.6 million active users in 2020 to over 52 million in 2022.[2]

 

Joining Other Consumer Brand Metaverse Forays

Walmart is joining a growing list of consumer-oriented brands that have launched metaverse strategies.  These include:

  • Chipotle built a virtual restaurant on Roblox and launched an online game.  Chipotle’s loyalty program members can also trade in their reward points for Roblox gift cards.[2]
  • Several other fast-food brands have opened virtual restaurants, including Wendy’s, McDonald’s, and Chick-fil-A.[2]
  • Wendy’s advertised as part of a new Fortnite event called Food Fight.[3]
  • Coca-Cola auctioned non-fungible tokens (NFTs) in an online auction via the OpenSea marketplace.[3]
  • Gucci sold several rare Gucci items on Roblox and created a virtual garden exhibit on the platform, part of a two-week immersive multimedia experience in Florence, Italy to celebrate the brand’s 100th birthday.[3]
  • Louis Vuitton created a game in the metaverse.[3]
  • Burberry brought its fashion items to the online game Honor of Kings.[3]
  • Nike created immersive digital experiences on the metaverse that connect with their physical offerings, even hiring a Director of Metaverse Engineering.[3]

 

Highlighting the Metaverse’s Potential

The metaverse has the potential to bridge the gap between the digital and physical world and change the way that companies interact with each other and their customers.  The willingness of companies to create metaverse strategies may attest to their optimism concerning the platform’s future, highlighting a potential investment opportunity for metaverse-related companies.

 

How may individuals gain exposure to metaverse-related companies?

 

The Fount Metaverse ETF (MTVR)

The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index.  The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology.

 

MTVR may be an attractive vehicle to gain exposure to metaverse-related companies.

 

For a full list of MTVR holdings, click here.


 


[1] Walmart Jumps into Roblox with Launch of Walmart Land and Walmart’s Universe of Play, Walmart News, Walmart Website, 9/26/22

[2] Walmart Journeys into the Metaverse, NACS, 9/27/22

[3] van Rijmenam, Mark, Seven Consumer Brands Reinventing Marketing in the Metaverse, Speaker Strategist, 11/3/21


 

Bong-Geun Choi

Chief Economist

bchoi@fountinvestment.com

More Posts

How Might Inflation Affect the Subscription Economy?

2 min read · 79 views Bong-Geun Choi Nov 11, 2022

Proof Continuance of Blockchain

1 min read · 109 views Sean Renninger Nov 09, 2022

Can the Metaverse Improve the Work-From-Home Experience?

1 min read · 77 views Bong-Geun Choi Nov 07, 2022

How Subscription Companies May Navigate Economic Uncertainty

1 min read · 123 views Bong-Geun Choi Oct 31, 2022

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.

Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.

Risk Disclosure:

 

Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. 

 

The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.

 

For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities. 

 

Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.

 

The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. 

0 MTVR · SUBS
MTVR · SUBS