Customers buy into high-tech consumption

Opportunities

Mo Daiqing, a senior analyst at domestic consultancy, Internet Economy Institute, said metaverse-related technologies will help further unleash the potential of consumption and bolster industrial upgrades.

Though still in its infancy, the metaverse has created new opportunities for China's consumer market, and has huge potential in propelling the development of customer services, logistics, finance and other industries, Mo said.

According to a report released by global consultancy PwC, the COVID-19 pandemic has altered consumers' shopping behavior, promoting stay-at-home recreational activities such as greater use of VR equipment for entertainment purposes and purchasing products in the metaverse.

Charting a new path for sustainable growth is more important than ever for a corporate strategy, said Jennifer Ye, PwC consumer markets leader for the Chinese mainland.

Brands should "enhance their product innovation capabilities, increase research and development investment and continuously create new products that meet the actual needs of consumers", she said.

The metaverse marketplace can offer new opportunities to brands in the same way that e-commerce has revolutionized operational models, Ye said. As technological advances gather pace, merchants should be prepared for rapid transformation, including upgrading both online and offline shopping contact points to stay relevant to consumers, she added.

The consultancy says the metaverse is the next frontier and it paints a rosy outlook for the metaverse-related economy, which it expects to grow to $1.5 trillion in 2030, mainly driven by AR and VR technologies.

Ye said companies should take advantage of the creative opportunities posed by such high-potential and malleable technology. "Retailers should look to enrich customer experience through the development of online communities in the metaverse where VR avatars can come together and discuss shared interests," she said.