Gartner Sees Virtual Worlds As A Growing Shopping Experience

Yesterday Gartner Finland released their predictions to retailers about emerging shopping habits and venues.  These are actually not so much predictions as a “heads-up display” of what is already happening.

By 2010, says Gartner, 20% of global Tier 1 retailers will have some kind of marketing presence in virtual worlds and online games.  This isn’t surprising considering Gartner’s 2007 Emerging Trends report from their April Symposium predicted 80% of active Internet users and Fortune 500 enterprises will have virtual world presences by 2011.  And, with virtual worlds on track with Moore’s law of doubling every 24 months, it is no big stretch of the imagination that retailers are riding the wave.

Networks are a Channel and a Place

No matter what lens you look through, 2007 saw an enormous embrace by organizations of “virtuality,” from social networks to Second Life.  The various different types of virtuality (2D and 3D) which organizations are trying to get their heads around are simply mashing up into an information and social space.  Soon we won’t be making distinctions among the technologies used to facilitate these spaces. 

And shopping certainly isn’t waiting around.

Brookstone launched their Kinset store for this year's holiday shopping season.

Social shopping networks like Kaboodle, ThisNext and Stylehive were built as ‘visual’ social sites, socially bookmarking through images rather than text.  Stylehive is now offering “Nectar Hives” allowing  retailers to "snap in" social shopping communities around their brands.

H&M set up shop in SimCity (video link), and have launched their initiative at My Virtual Model, also distributing it to Facebook.

Of course, Sears and Circuit City are experimenting with virtual-to-real retail via IBM in Second Life; and in-game advertising and product placement is old news.

Gartner encourages retailers to expand their definition of customer touchpoints to online games and virtual worlds – and cites the mobile shopping web as a big growth opportunity, as well.

The important point in all this is this:   it is not about the virtual “place.”  Like everything else today, the shopping opportunity lies with the avatar. 

See Gartner’s press release here.

See Kinset’s 3D shoppping videos here.

December 8, 2007

Comments

[Helen T]

Linda, great piece, I think 2007 has seen some interesting strides forward for retailers, and I'm interersted to see what happens in 2008. Having taken our leading brand into SL in October, we weren't the first brand to enter a virtual world, but I think we are possibly at the leading edge of the second wave, having had some time to think about why we should be in a virtual world, and what it can mean to us and our shoppers. We're still working it out, but being in SL means we learn something every day about the way we can use this as a very different retail touch point.

[David]

The MMORPG business is amazing, and it will grow too. The sky is the limit. However, the real money to be made is in virtual currencies, not the second life hype...