THE ICONIC BRAND’S LATEST COMPANY is a Metaverse game called. Swoosh is a Web3-enabled platform for people to purchase their virtual products. Like today’s internet: commerce dominates. Swoosh exists on a domain called “Nike” and will be an experimental digital space for registered members.
It is in beta, and participation registration will begin on November 18th. The platform will initially focus on building communities and providing “challenges” to members to get a picture of what they want to see. The brand’s first virtual collection – consisting of footwear, apparel, and accessories – will be launched on Swoosh in January 2023 and will be characterized by activities such as interactive voting. Later, members can collect and trade these purely digital products; The platform uses (USD) cash, not cryptocurrencies, although all transactions are recorded on the Polygon chain.
Virtual branded apparel is nothing new, but Nike has teased that next year’s Swoosh Community Challenges will be expanded to include contests where members can win a chance to design virtual Nike products with them and earn a percentage of royalties. But before you budding sneaker designers get too excited, here are details on how this maker economy will work: the selection process, how to design collaborations will take place, what percentage of the revenue people will receive what legal framework they will implement to make this happen and make sure co-designers get paid; they’re extremely lazy.
Nike claims its domain exists to “ensure it’s a safe and trusted place” for members to collect virtual creations, “like virtual sneakers or virtual t-shirts.” What seems clear is that the competitive structure and brand dominance will ensure ultimate ownership and control over Nike’s activities, which doesn’t exactly fit Web3’s decentralized ethos.
The 18 Best Wireless Headphones for EveryonePARKER HALLWhile there will be no avatars at launch, the brand’s stated goal is that virtual products launched on the Swoosh can be used on and off the platform. RTFKT can use our wearable devices and avatars in the games it’s already playing,” said Ron Faris, vice president and general manager of Nike Virtual Studios, the part of the brand formed in early 2022 to focus on the virtual realm focus.
Of course, Nike bought the studio NFT RTFKT (pronounced “artifact”) in December 2021, so the transfer of “co-designed” virtual clothing to this platform comes as no surprise. Additionally, there are no specific details on the interoperability of the Swoosh elements with other platforms or metaverses. Still, Faris says the plan is to “work where our handheld devices start to be more usable in more experiences or games.” then you can play.” you will find play.” In other words, wait, and I will see you. Meta’s recent announcement that their avatars will have legs seems like an ideal opportunity for virtual sneakers. Nike already has a Metaverse area on Roblox, Nikeland, where users can purchase and use virtual items without using cash or money. Cryptocurrency, but game currency.
More than 26 million people have visited the company’s virtual world since its launch in November 2021, according to Roblox. Once more, Faris doesn’t seem to understand how the Swoosh and Nikeland will work together. We have yet to determine exactly how that will appear, he says.
By introducing the Swoosh, Nike may create a virtual world without relying on other platforms. Nickel could be included in the Swoosh, but Interop must be the focus for that to happen. For the same reason, MSquared, the division of Improbable that creates Metaverse for third parties, requires customers to ensure that all virtual spaces are interoperable. Nike is one of many high-end apparel brands to acquire virtual products. Pioneering: In 2021, the brand launched digital-only Gucci Virtual 25 sneakers wearable on VRChat and Roblox and created Gucci Town on Roblox. In this immersive place, users can shop other virtual Gucci apparel.
The risk has paid off: a digital-only Gucci bag on Roblox sold for more than the price of its physical counterpart (in in-game currency, of course). Vault, Gucci’s online concept store hosting various crypto and NFT projects, launched in The Sandbox in October 2022, cementing the brand’s relationship with the Metaverse.
Givenchy, Ralph Lauren, and Tommy Hilfiger also have sections on Roblox that sell digital goods. And in June 2022, Balenciaga, Thom Browne, and Prada partnered with Meta to develop virtual products for sale in the platform’s new Avatars store. According to Bloomberg, the Metaverse market could reach $783.3 billion in 2024, up from $478.7 billion in 2020, and virtual goods certainly play a part in that forecast.
Nike may see a virtual merchandise marketplace as the next logical step in its digital successes. The brand has seen a huge surge in online sales in the wake of the pandemic, and as of March 2022, digital channels and apps accounted for more than a quarter of its sales, with digital sales soaring. Without a doubt, the pull for Web3 is strong; The last thing brands want is to be left behind. According to “Meet the Consumer Where Plays or Shops,” we serve the market of the future, says Faris.
Although Nike acquired RTFKT last year and made $3.1 million selling 600 pairs of NFT “Cryptokicks” sneakers in April 2022, it bypassed NFTs currently battered for introducing Swoosh. “We call these ‘virtual Nike creations’ because I think they have broader implications than NFTs,” says Faris. The NFT bubble may have burst, at least for now, but it still needs to be determined whether the broader market for virtual Products will also be volatile.
Nike plans to add services and utilities to its virtual products
“When we look at a virtual shoe, we don’t just see the shoe,” says Faris. Secret chat room with our designers to help design together. We learn that buying a virtual product is not the end of a buying journey but the beginning of it. Nike is betting on the future of virtual goods and successfully selling them in its new world instead of on established and much-visited platforms of Roblox and others. Industry analyst Benedict Evans believes such a move carries significant risks, even from a brand like Nike.
He claims that the market for virtual goods outside niche use cases like Roblox or Fortnite is still in its infancy. Faris seems aware of this uncertainty. “We’re going to try, test, and learn a lot of different things,” he says. “We’re trying to evaluate [people’s] behavior. This could lead to expensive market research or help explore retail in the web3 era.”
“This world we are in now is like the internet before the browser was invented,” says Faris, who thinks that society and technology are at a turning point. Nike fans will have to wait until next year for the first co-created virtual browser sneaker, and Web3’s evolution remains to be seen. Still, it’s certainly another opportunity for companies looking to launch products. What was initially touted as a decentralized utopia is increasingly looking like a continuation of the status quo: only brands take even more responsibility if you assume swoosh. The revolution will be monetized when it comes to the future of the internet. Get your virtual kicks now.