Sporting goods manufacturer Nike has been experimenting with metaverse commerce and NFTs via the virtual universe Roblox. Nike is now reporting its initial success with its metaverse store including visitor numbers and campaigns.
The “Nikeland” in the metaverse attracts visitors with interest in digital sports and game inspirations. However, it is not a strictly entertainment platform. The entertainment aspect is merely a means to an end: tapping into the potential of metaverse commerce. Currently, Nike sells digital clothing, shoes, and accessories for Roblox avatars in Nikeland.
Nike is now revealing that its metaverse store has seen close to 7 million visits in the last five months. The company CEO John Donahoe revealed this during an investor call on its current quarterly figures where he also delved into Nike’s new business line as well as its other metaverse investments.
Since its debut at Roblox in November 2021, Nikeland has so far attracted 6.7 million visitors from 224 countries who are coming in to take advantage of the offer. Although Donahoe did not divulge any financial figures for Nikeland, he talked about the company’s monetization and activation strategies
Among its strategies, the company acquired the startup RTFKT last December which specializes in digital items. The startup has now been integrated into the company’s new “Nike Virtual Studio”. It published its first nonfungible token (NFT) with a Nike brand last quarter. Donahoe sees this as Nike’s first foray into the world of digital products. Metaverse is expected to be huge in the coming years. Nike is promising additional investments in this new market segment.
The company says it is excited about the positive momentum as well as the energy that it is already seeing in the metaverse space and that it is excited about future prospects as it continues to expand its digital leadership in the industry.
Nike’s digital arm is currently its fastest-growing and accounts for 26% of its total brand sales. The company has already filed a patent for its metaverse brand: Nikeverse.
LeBron James Comes to Nikeland
Nike also collaborated with NBA star LeBron James for its metaverse land, Nikeland who visited the brand’s metaverse locale as an avatar during its All-Star week in mid-February 2022 and even interacted with the Roblox community.
In the appearance, LeBron James “trained” avatars on the Nikeland basketball field to win virtual products during and after the event.
The fact that stars from the real world can come to the metaverse and attract visitors is an important marketing opportunity for brands. We are already seeing Fortnite concerts being attended by millions of young people, something that’s obviously infeasible in the real world and which gives artists greater reach than they’d hit in the real world. Platforms such as Fortnite and Roblox already have millions of users and will are perfectly suited for the Nikeland-style brand metaverse experiences.
- March 27, 2022