I’ve heard the word “metaverse” more frequently in recent years, but can it be used in business?
My business needs to learn how to use the Metaverse.
As mentioned above, many of you may have the same questions and concerns.
Here, we will introduce the benefits of Metaverse for those in the business field, along with specific methods and examples.
What is Metaverse?
A metaverse is an Internet-based three-dimensional virtual space.
It is a coined word derived from the name of the virtual space in Neil Stevenson’s science fiction novel Snowcrash, which combines the words Meta and universe, meaning transcendence.
Controlling your avatar allows you to move around the Metaverse, converse with other users, and collaborate.
While the Metaverse is frequently connected with gaming, for example, “Fortnite,” and amusement, for instance, VRChat, it is likewise utilized in business. This technology is being used in more and more ways.
What is a Defining Feature of the Metaverse
Metaverse is attracting the business world’s attention these days for several reasons.
Many people have heard the term “metaverse” recently, but why has it gained attention in business? This is due to four main reasons.
- VR (virtual reality) technology development and spread
- Metaverse market size is expected to grow dramatically in the future.
- Large companies and platform operators invest heavily in the Metaverse
- The spread of the new Coronavirus infection has severely impacted corporate activities.
VR (virtual reality) technology development and spread
The Metaverse has recently attracted attention due to the rapid growth of VR technology and its growing popularity among the general public.
 A VR headset (VR goggles) allows users to experience a virtual space as if it were reality by wearing a device like a head-mounted display. VR is also called “virtual reality.”
As VR innovation was in its earliest stages during the 1960s, it was not broadly utilized external foundations since PCs had low execution and head-mounted shows were weighty and costly.
As smartphones have spread, semiconductors, displays, batteries, etc., have improved performance and weight reduction, resulting in the development of head-mounted displays and VR goggles.
In recent years, head-mounted displays and VR goggles, such as Meta Quest 2, which can be purchased for tens of thousands of yen and weigh little, have become extremely popular.
As VR technology develops and spreads, the Metaverse, a three-dimensional virtual space, is also attracting attention as it shows the actual value of VR.
Metaverse market size is expected to grow dramatically in the future.
Many research institutes and organizations predict that the Metaverse, which will play a central role in the Internet, will grow dramatically.
The domestic market size of Metaverse is expected to be approximately 4 trillion dollars by 2025 and 24 trillion yen by 2030, according to Mitsubishi Research Institute.
According to a document published by the Ministry of Internal Affairs and Communications, the global market for Metaverse by 2030 will reach 78,870.5 billion dollars.
Many companies have announced their intention to enter the Metaverse field, and the Metaverse market is expected to grow to an unprecedented size.
Large companies and platform operators invest heavily in the Metaverse
The Metaverse (formerly Facebook) invests 10 billion dollars annually in research and development.
In recent years, global platform operators and large companies have announced their intention to enter the Metaverse, which has attracted the business world’s attention.
Meta (formerly Facebook) is a good example.
In 2014, Facebook acquired Oculus, a company that developed and sold head-mounted displays. In 2021, Facebook changed its name to Meta. We further promoted the Metaverse business.
Currently, we invest 10 billion dollars a year in metaverse-related research.
Furthermore, Sony released PlayStation VR2 and announced that Metaverse will be the core of future growth.
Further, Sony announced that Metaverse will be the core of growth in the future.
In the Metaverse, games, IP, and music intersect as a social and live network space, and the next-generation VR system for PlayStation 5 is positioned as a critical device for entering the virtual world.
The Metaverse is attracting attention as large global companies have started entering the Metaverse and making huge investments one after another.
The spread of the new Coronavirus infection has severely impacted corporate activities.
Furthermore, the spread of the Coronavirus since 2020 has unexpectedly heightened interest in the Metaverse.
Since the Coronavirus pandemic, it has become increasingly difficult to hold events where multiple people gather and participate.
Several local construction companies could not hold small-scale tours of finished products after voluntarily canceling live performances, performances, lectures, etc., in B2C.
In B2B, only some companies relied on exchanging business cards at exhibitions and events to negotiate business and obtain leads.
Due to the spread of telework, door-to-door sales have become significantly less effective.
Because the Coronavirus pandemic made it challenging to conduct sales in real life, the Metaverse, which gathers people in a virtual space, suddenly became popular.
How to Start a Business in the Metaverse
Metaverse can be used for business in many ways:
- Social gatherings/events
- Installing showrooms
- Model houses and exhibition halls for housing
- Virtual office/virtual conference room
- Educating and training
- Virtual store/virtual market
- Games, advertising, and sales within game spaces
Social gatherings/events
Events and social gatherings are the most common way to utilize the Metaverse, whether BtoC (consumer business) or BtoB (corporate business).
- During recruitment activities, company information sessions and events are held
- Networking event with user participation
- Social gatherings for people with incurable diseases.
- Exhibitions of products and services, etc.
In May 2022, Nissan Motor Co., Ltd. held a new car launch event on the Metaverse.
During the new car presentation, the vice president and staff appeared as avatars to give representations to the participants, and they were also able to take a Metaverse test drive.
In an interview, Nissan Motor Co., Ltd. said: “We began working on the Metaverse by exploring two-way communication rather than communication that is a unilateral transmission of information.”
The Metaverse’s ease of two-way communication is beneficial at events where participants can freely converse with each other.
Alternatively, web conferencing systems such as Zoom are more suitable for seminars where panelists speak one-sidedly.
Installing showrooms
Setting up a showroom in the Metaverse space will allow you to promote your products and services directly.
There is no need for office rent or construction costs, and there is no need for daily cleaning or maintenance.
Moreover, it is easier for users to participate since they do not need to travel or pay transportation costs.
Model houses and exhibition halls for housing
A housing exhibition hall/model house on Metaverse allows customers to view the house anytime and saves them money on initial and maintenance costs.
Some construction companies are using the Metaverse as a housing exhibition hall.
With “LiveStyle PARTNER,” Daiwa House users can tour model homes in the housing exhibition hall and consult with employees via the Metaverse. In collaboration with
Using the LiveStyle PARTNER (Daiwa House Industry Co., Ltd.) Metaverse, customers can view housing exhibition halls and model homes anytime from their computers or smartphones and walk inside them using VR goggles.
This is an excellent way to look around the room.
In addition, exhibiting at real housing exhibition halls and building model homes requires huge initial costs and maintenance costs, but Metaverse housing exhibition halls are much cheaper to operate. As well as.
Virtual office/virtual conference room
As telework has become increasingly popular among companies since the spread of the Coronavirus, virtual offices and virtual conference rooms on Metaverse have become necessary.
Meta’s “Horizon Workrooms “is the most famous virtual office/virtual conference room service.
With virtual offices and conference rooms, you can communicate using your avatar and gestures and explain by drawing diagrams and pictures on a whiteboard within the Metaverse.
Multiple people can collaborate and communicate more quickly this way.
Introducing a virtual office makes hiring talented people who live in remote areas easier and allows people with disabilities, family care responsibilities, childcare, etc., to participate actively in the team.
In addition to saving on office rent, utility costs, and equipment costs, there is no need to prepare a large office.
Educating and training
- VR and Metaverse are also well suited to educational settings.
VR and Metaverse can also be used effectively in educational settings.
As part of traditional school education, dozens of students gathered in a classroom and listened silently to the teacher.
Students can only listen one-sidedly to what is being said, which reduces their ability to concentrate and makes them less proactive.
By using VR and Metaverse, students can participate in classes more actively.
A correspondence high school corporation, Kadokawa Dwango Gakuen, has already incorporated VR and Metaverse into its courses.
Classes in VR/Metaverse
- During math class, 3D shapes appear at hand and can be viewed from any angle.
- You can see three-dimensional models of trilobites and mammoths in biology class.
- Students feel less lonely and are more motivated to learn when they have avatars of other students taking the same class in the Metaverse.
- Physically disabled or ill students can participate in classes as if they were in the same category.
- Metaverse and VR can be used in corporate training to simulate dangerous job situations.
The Metaverse and virtual reality can be used not only in school education but also in corporate training.
Metaverse and VR are particularly useful for learning about dangerous acts that cannot be practiced in real life.
New employees cannot experience accidents in the manufacturing industry, where clothing gets caught in machinery, or accidents in the construction industry, where employees fall from heights.
Virtual store/virtual market
In contrast to regular online shopping, a major department store opens a virtual store on Metaverse
In addition to building stores and markets in virtual space, the Metaverse can be used to sell products and services.
With the spread of the new Coronavirus, many retail companies are experiencing a decrease in customer visits to their stores, and virtual stores can be a solution.
It allows you to shop with realism by visiting a space that recreates an actual store with your avatar, viewing products from 360-degree angles, and watching videos showing how they are used.
Apart from meeting with friends in the virtual store and shopping together, you can also receive customer service from the store staff’s avatars, a significant advantage over regular online stores.
Over 1 million people visited the virtual market, featuring many famous companies.
Games, advertising, and sales within game spaces
Gaming is the most popular metaverse field and attracts the most users.
As the Metaverse becomes mainstream, the game industry, which is currently the most popular, will continue to dominate.
As of May 2020, Epic Games’ online shooting game Fortnite has over 350 million registered players.
Through Roblox, an online gaming platform, players can play various games created by other players and distribute their games.
As of 2021, Roblox’s daily active users (the number of valid accounts that visit the game daily) exceeded 50 million in 180 countries.
In addition to being games, online games are becoming platforms that are attracting a considerable number of users.
Even after knowing this data, some people may think, “We’re not a game company, so it doesn’t matter.”
These games, which boast many users, will still impact businesses even if they are outside the game industry.
The game could become a business platform if there is an overwhelming number of users.
The rappers Travis Scott and Kenshi Yonezu held live performances on Fortnite that attracted a large audience.
The live performance of Travis Scott lasted only 9 minutes, but it attracted 12.3 million users and generated $20 million in sales.
Companies can advertise, run campaigns, and sell items in the metaverse space in-game.
The game space, where many users come and go, is a great place to advertise, even if you do not hold an event directly.
Only 15% of Fortnite players are over 35, and 62% are under 24.
To effectively reach Generation Z, which will soon become the majority in the world, in-game spaces will become increasingly important.
Furthermore, we are actively trying to sell products within the game industry.
GUCCI sells limited-edition items that avatars can wear in Roblox, and Chipotle is opening a virtual restaurant in the game. Coupon sales promotions are being developed.
Business usage of the Metaverse is progressing even in the field of food, which at first glance appears distant from the Metaverse.
