While there won’t be an avatar at the time of launch, the brand’s stated ambition is that virtual products released on the Swoosh can be worn on and off the platform. “I can imagine avatars on RTFKT being wearable on wearables,” said Ron Faris, VP/GM of Nike Virtual Studios, the brand’s branch that launched in early 2022 to focus on virtual. ours, as well as avatars from the games you’ve played.” globe.
Of course, the studio NFT RTFKT (pronounced “artifact”) is purchased by Nike in December 2021, so porting “pre-designed” virtual clothing to that platform is hardly surprising. Other than this, there are no specifics on the interoperability of Swoosh items with other platforms or metaverses, but Faris said the plan is to “work where our wearables will start. head becomes easier to operate through the many experiences or games you find yourself playing.” In other words, wait and see. Meta recent announcement that its avatar would have legs seemed like an ideal opportunity for virtual sneakers.
Nike already has a metaverse space on Roblox—Nikeland—where users can buy and wear virtual clothes using not cash or cryptocurrency but in-game currency. Launched in November 2021, the branded virtual world has attracted more than 26 million visitors, according to Roblox. Again, Faris doesn’t seem to know how the Swoosh will interact with Nikeland. “We haven’t exactly projected what it will look like,” he said.
By launching the Swoosh, Nike may be creating its own virtual world without relying on other platforms. Nikeland could be bundled into the Swoosh, but interoperability would certainly have to be central for that to work. This is the reason MSquaredImpossible’s division specializes in building superswitches for third parties, asking customers to ensure all of its virtual spaces are interoperable.
Nike isn’t the first high-end apparel brand to use virtual products. Gucci has been somewhat of a pioneer: In 2021, the brand launched the Gucci Virtual 25 digital-only sneakers, which can be worn on VRChat and Roblox, and created the Gucci Town on Roblox, a not immersive space in which the user can purchase other virtual Gucci apparel . The bet seems to have paid off: A digital-only Gucci bag on Roblox sell for more compared to the price of its physical counterpart (in in-game currency, of course). Vault, Gucci’s online concept store that hosts many crytpo and NFT projects, was introduced to The Sandbox in October 2022, cementing the brand’s relationship with the metaverse.
Givenchy, Ralph Lauren and Tommy Hilfiger also have spaces on Roblox that sell digital goods. And in June 2022, Balenciaga, Thom Browne and Prada teamed up with Meta to create virtual products for sale on the platform’s new Avatars Store. Based on Bloombergthe metaverse market could reach $783.3 billion by 2024, up from $478.7 billion in 2020 — and virtual products certainly play a role in this forecast.
Nike can see the virtual product marketplace as the next logical step in its digital successes. The brand has seen a dramatic increase in online sales after the pandemic, and by March 2022, digital channels and applications more than a quarter its revenue, with digital sales soaring.
