At the intersection of online and traditional shopping, customers have a clear idea of the products they want. It's up to businesses to plan for expansion and long-term success

The metaverse is hard to escape. The emerging virtual world is the driving force behind the evolution of the internet, and consumers are increasingly looking for more immersive experiences and demand the ability to interact with products and brands before making a purchase. This enthusiasm can potentially create $5 trillion in value by 2030. Leading companies are actively experimenting with commerce in the metaverse, from home and food to fitness and apparel.

In this article, we will focus on what consumers can expect from the metaverse, based on a study representing the insights of McKinsey's E-Commerce Global Initiative. 

This research is important because its results are based on the October 2022 Metaverse Consumer Survey, which tests consumer interest in various metaverse use cases. A representative sample of over 1,000 US consumers aged 18 and older, screened by internet access and device ownership, were interviewed, providing important data. 

What do consumers want?

According to McKinsey's metaverse Consumer Survey findings, numerous metaverse initiatives demonstrate technological advances but often fail to meet consumers' expectations by offering practical and useful products and services that can currently be used independently or in combination with physical space. In virtual reality, the key strategy for creating value and promoting the acceptance and use of metaverse products is to establish a link between potential customers and specific applications that match their individual interests.

Experiences firmly rooted in empirical reality

Undoubtedly, the ongoing development of the guidebook for trade in the metaverse remains a subject of active exploration and refinement. Approximately 25% of corporate leaders believe that over 15% of their organization's total profits will originate from the metaverse during the next five years. Furthermore, close to 60% of individuals who are now engaged with the metaverse express a preference for immersive events as opposed to real-world alternatives.

There is also a trend among corporations to establish a presence in this industry by strategically targeting customers in their current and anticipated locations. Nevertheless, it is worth noting that a significant proportion, almost 60 percent, of the participants in the study were aware of the concept of the metaverse. However, it is important to acknowledge that there were variations in their technological preferences and levels of interest in different product categories and use cases.

• As humanity plunges into the dark depths of the unknown, it pauses before the limitless potential of the metaverse. However, as we push the boundaries of this new world, consumers' feet are still firmly planted on the ground. While they dream of reaching for the stars, they still want to feel at home in the comfort of their own homes.
• Futuristic offerings may seem straight out of the pages of a science fiction novel, but most consumers still prefer to stay connected to the physical world. In the fashion and beauty category, consumers prefer fully virtual experiences, such as virtual events and virtual homes, to something closer to their real-world experience.
• While consumers recognize the limitless potential of the metaverse, they still want to stay connected to their daily activities in the real world. For example, nearly one-third of consumers attribute their lack of interest in fitness-focused apps to their lack of interest in the same app in "real life". They prefer to use cases that bridge the physical and digital worlds, such as 'home trials'.
• While consumers recognize the limitless potential of the metaverse, they still want to stay connected to their daily activities in the real world. For example, nearly a third of consumers attribute their lack of interest in fitness-focused apps to their lack of interest in the same app in 'real life'. They prefer use cases that bridge the physical and digital worlds, such as 'try it at home'.

In the expanding cosmos of the metaverse, it is worth noting that the research results, which turned to explorers - consumers - to chart their routes, are highly original. From the realms of fashion and beauty to food and fitness, respondents' compasses point in a familiar direction: experiences that echo the real world, even if it means a toll at the door (Exhibit 1). This is an urgent sign for companies: In the metaverse, the fastest way to the consumer's heart is through the door of the physical world.

Exhibit 1:

Fashion and beauty: A missed mark

While about 50% of consumers earmark fashion and beauty as the top two categories for metaverse commerce, current offerings fail to capitalize on this enthusiasm. Many brands are investing in creating immersive, digital-only metaverse experiences (especially when it comes to clothing and beauty shopping), but consumers are less thrilled about wandering in digital stores than metaverse applications that enhance their shopping experience in the physical world (Exhibit 2).

Despite all the rhetoric about allowing consumers to 'express themselves' in the metaverse through avatars, this is not the main reason consumers want to interact virtually. Avatars are primarily seen as engaging if their use improves the purchase or trial of products in the real world, or if they are fun at the time. This reflects the general finding that consumers are interested in fun or entertaining metaverse use cases; however, this interest may not be in the way that brands expect.

A Reality check on consumer preferences

The concept of property takes a peculiar turn in the metaverse. The idea of owning or renting virtual property seems to be a hard sell, with only about 21% of consumers placing it in their top three interests. 

Much like fashion and beauty, the real estate category finds its appeal not in the purely digital but in experiences that echo the physical world. Virtual open houses and product showcases garner the most interest, with about 50% of consumers wanting to experience them.

Regarding socializing in the metaverse, the enthusiasm seems to wane. Consumers appear to be more interested in the metaverse's escapism - the ability to travel to new places, times, or spaces - rather than using it as a platform for nightlife or membership groups. This could be interpreted as consumers viewing the metaverse as a stage for entertainment rather than a social hub.

The food category presents an interesting conundrum. Consumers rank cooking lessons and virtual meeting spaces highly, yet there seems to be a general confusion about how food-related use cases translate into the virtual realm. Unsurprisingly, about a third of consumers are left scratching their heads at the idea of "consuming food" in the metaverse. More consumer exploration is needed to uncover how to whet their appetites.

The fitness category is where consumers have a relatively high level of familiarity with online services, see group exercise classes, and have the ability to cycle or run in different locations. Other use cases, like competing in a virtual event or collecting digital sports memorabilia, may require more consumer education and imagination to gain traction.

Staying ahead of the metaverse curve: Three pragmatic strategies

Companies seeking to maximize the benefits of their metaverse initiatives must possess the qualities of agility, flexibility, and adaptability as essential tools for survival. metaverse pioneers are expected to be those who demonstrate mastery of the following three maneuvers:

1. It is important to understand the consumer's identity and current position within their metaverse journey. The level of understanding, acceptance, and enthusiasm for the metaverse can vary significantly depending on the demographic and psychographic characteristics of the customer. Several elements, including categorization, usage scenarios, age, psychographics, and other considerations may influence the desire to connect the physical and digital realms. Identifying customers' demographics and preferences within the metaverse is a strategic approach and an essential need.
2. Identify and prioritize key use cases and develop customer-centric offerings. The prioritization of use cases will undoubtedly vary by retail sector. Conducting a comprehensive study of the primary use cases within your category will provide valuable guidance for your metaverse experiments and product offerings. Still, it will also reveal significant consumer concerns about your category in the metaverse. The focus of this endeavor goes beyond simply providing products, as it is about providing complete solutions.
3. Adopt the 'test, learn, and scale' principle as a guiding philosophy. In the current organizational landscape, the application of a 'test and learn' methodology to product development has the potential to determine the outcome of success or failure. This can include scaling high-potential use cases that have gained significant traction, soliciting product development proposals from internal sources, and implementing metaverse offerings with varying profitability projections as part of the product validation process. This phenomenon applies not only to the act of creation but also to the process of evolution.

The metaverse can be seen as more than a new domain; it represents the domain to come. The winners will not be those who simply establish a presence in the metaverse but those who deeply understand their customers, develop compelling offerings that resonate with them, and demonstrate the ability to adapt their strategies as the metaverse evolves rapidly.

Metaverse: A new frontier anchored in reality

The metaverse, a realm of infinite possibilities, is not just a new space but a reflection of the world to come. But as we stand on the precipice of this digital frontier, it's clear that understanding consumers is crucial. Studies such as McKinsey's provide invaluable insights into metaverse consumer behavior, preferences, and expectations.

Consumers are still trying to keep up with the metaverse and prefer experiences that enrich their physical world. This suggests that the key to unlocking the potential of the metaverse lies in bridging the digital and physical worlds. It seems that Augmented Reality (AR) technology is poised to play a pivotal role with its rapid growth and expanding applications.

But the most profound lesson of the metaverse is this: No matter how far technology advances, we remain connected to the real world. Even in the face of radical technological change, our humanity persists. Perhaps this is the metaverse's greatest opportunity: to create a platform that unites the digital and physical worlds, a platform that enhances our reality rather than replacing it.

Ultimately, the metaverse is not just about creating new worlds; it is about understanding and enriching our own. As we move towards this brave new world, we carry the most important piece of the puzzle: our humanity. Because it is our human spirit - our desires, our creativity, and our resilience - that will truly realize the metaverse.