The Nike metaverse is expanding. The iconic sportswear brand debuted a new Web3 platform called .Swoosh where people can buy and design virtual products. The metaverse platform will be home to Nike’s digital products on online gaming and immersive experiences.
Over time, Nike plans to develop .Swoosh to buy, sell, and trade in digital merchandize for a cut of the profits. The company also saw strong third quarter results that led Nike shares up.
The Nike Metaverse
.Swoosh will be Nike’s virtual abode. The platform will contain all digital products that can be used in video games and other immersive experiences.
The company has been preparing for the Nike metaverse for over a year. IN November 2021, CNBC reported that Nike has filed several new trademarks that showed an intent to sell virtual branded sneakers and apparel. At the time, experts predicted that the company was preparing to start selling virtual clothing, headwear, and shoes, in online and virtual worlds.
“We are shaping a marketplace of the future with an accessible platform for the web3-curious,” said Ron Faris, general manager of Nike Virtual Studios. “In this new space, the .Swoosh community and Nike can create, share, and benefit together.”
The .Swoosh Space: Authentic and Diverse
The blockchain-powered platform will also allow users to connect with celebrities and access virtual products. “You can collect, trade, and flex Nike virtual products. You can go to IRL events with your token-gated virtual creations,” said Faris. In some instances, users will also be able to access real products and events.
Registration on the Nike metaverse is set to begin later this month on a rolling basis. The sports brand will prioritize building a diverse community on .Swoosh and focus on the US and Europe. It will soon be a part of the evolution of Nike for the modern age.
According to Nike’s blog entries, .Swoosh has many things lined up over the coming months and will slowly launch multiple offerings for the virtual space. From 2023, the platform will experiment with token-gated events and virtual activities. The Swoosh community will propel the brand’s new offerings directly into the hands of the public. The platform will also offer Polygon-based NFT products by 2023.
Also, Swoosh is different from Nike’s Web3 studio RTFKT.
As blockchain technology gathered steam in the last two years, Nike entered the race by acquiring RTFKT in December 2021. The Oregon-headquartered firm also partnered with popular gaming platform Roblox to launch “Nikeland,” a digital world where fashion and gaming meet. Although Roblox is yet to integrate NFTs, Nikeland will most likely use them in the future and encourage users to own their clothes. Nike isn’t the only brand to build digital merchandise. Givenchy, Ralph Lauren, and Tommy Hilfiger all have their own spaces on Roblox.
If Nikeland is any indication of how .Swoosh will be developed, skeptics can rest assured it will draw in millions of users. Over 21 million have visited Nikeland till date.
Eventually, Nikeland might be absorbed into .Swoosh as the brand builds its virtual empire. Experts also see this as a sign that Nike prepares to launch its own NFT in the near future.
The Metaverse Market
The company recognizes the potential of a digital space and is focused on building more experiences for its users. CEO Jack Donahoe earlier revealed that the Nike Virtual Studio will continue to build its business “while also partnering with our core business to deliver best-in-class Web3, Metaverse, and blockchain-based experiences.
Building metaverse experiences will help Nike advance its direct-to-consumer strategy. It helps the company control the narrative from start to finish, while amassing relevant data about its consumers.
According to GlobalData estimates, the global metaverse industry is expected to grow to $996.42 billion by 2030. Having a metaverse account helps brands tap into a niche market and connect with their customers. Brands can also experiment with product lines and receive direct feedback from customers on what works and what does not. Interactive experiences also allow customers to engage with a brand in a meaningful manner and build customer loyalty.
The metaverse can also work as a testing ground, before physical products are released. As virtual worlds present a new frontier, a quick study of what one’s competition is up to and what experiences people are looking for will help brands break new ground.
