Companies Partner with Zepeto... Open Virtual Stores Targeting MZ
Virtual Items Sold Out... Leading to Real-World Sales
[Asia Economy Reporter Yuri Choi] The number of companies joining Naver Z's metaverse platform 'Zepeto' has surpassed 1,000. As Zepeto has emerged as a 'hot place' for the MZ generation (Millennials + Generation Z), more companies are seeking collaboration. It is being recognized as a marketing tool where virtual goods are sold in virtual spaces and the same products are purchased in the real world.
On the 10th, Naver Z announced that the number of companies collaborating with Zepeto has exceeded 1,000. Starting with three companies in 2018?Nike, Disney, and Line Friends?the number of collaborating companies has rapidly increased. Not only major domestic corporations such as Samsung, Hyundai Motor Company, and Nongshim but also global companies like Ralph Lauren, Gucci, and Dior Beauty have joined.
Companies are knocking on Zepeto's door because of its marketing effectiveness. While metaverse marketing initially spread like a trend, now companies can visually confirm customer inflow and increased product sales. Ninety percent of Zepeto's 320 million users belong to the MZ generation. Companies eager to capture young future customers have become deeply involved in Zepeto marketing.
A representative example is Nongshim's 'Shin Ramyun Snack Bar,' which opened on Zepeto last October. It attracted 440,000 visitors by early this month, averaging about 4,500 visitors per day. Compared to an average of about 300 visitors per day at a domestic convenience store, this is 15 times larger in scale. A Nongshim official explained, "We chose a platform where many MZ generation members, our target audience, gather," adding, "Most participants were from the MZ generation, and the proportion of global users was also high."
Zepeto users select ramen recipes and cook as if playing a game in the virtual snack bar. The recipe that received the most selections was launched as a new product on the 9th. An offline pop-up store that replicated the virtual snack bar also opened. This is a case of providing a new brand experience through the metaverse and linking it to offline sales.
Fashion brands are also seeing the effects of Zepeto. The sheepskin boot brand UGG operated 'UGG World' on Zepeto from November to December last year, selling an average of 6,000 items per day. Major shoe and clothing sales at offline stores increased by 60% and 37%, respectively, compared to before the opening of UGG World. Users try on items in Zepeto and proceed to purchase the products in the real world.
Gucci limited the sale of some items from its winter collection as Zepeto items last month, selling out in 45 minutes. The 'Gucci Garden Ikitaipu,' an offline exhibition moved to the metaverse in March, attracted 750,000 visitors over a month. The clothing, handbags, and other items sold to these visitors totaled 110,000.
Companies are paying attention to the growing activity of 'metacommerce' (metaverse + commerce). Metacommerce refers to e-commerce where products and services are experienced or purchased in a virtual world. It enables communication with the next-generation consumer base, the MZ generation, through the metaverse and leads to actual purchases.
Naver Z expects to diversify its revenue through collaborations with companies. Currently, it only charges commissions on items traded in Zepeto, but it is open to future advertising monetization possibilities. This is because Zepeto has established itself as a marketing tool. A Naver Z official said, "Zepeto is gaining attention as a new stage connecting various global companies and users," adding, "We will continue to collaborate with diverse brands to provide metaverse experiences that transcend online and offline."
However, the rising skepticism about a metaverse bubble poses a variable. Although it enjoyed a boom due to COVID-19, the enthusiasm is cooling as face-to-face activities gradually increase. The stock prices of metaverse-related companies like Meta and Roblox reflect this. Analysts suggest that without a clear business model or differentiated content, Zepeto will also reveal its limitations.
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