The last two years have been a game-changer for the digital world, as with the emergence of many new ecosystems, commerce will be affected first on the web and then on the physical world.
Many of the tech ecosystems are forming the foundations of commerce by 2030. Commerce is based on virtual worlds, decentralized digital identities, and a new generation of consumers being propagated by the game. The crypto generation, led by GenZ, will create a new marketing channel through the metaverse. Brands and retailers are now seizing the beginnings of this new commerce, as happened with e-commerce in 1998. But when will it be? Who is positioned to dominate the Internet of tomorrow? Is this still a fight between GAFAM and BATX (Baidu, Alibaba, Tencent and Xiaomi)? Is it still a game between China and the United States? How has South Korea become such a great place for innovation on the world stage?
L’Echangeur BNP Paribas Personal Finance examines many ways, some unrealistic for our continent, but the short talk (video below) shows us how selling in the virtual world has become real, in example of Korea’s jump into the metaverse. on both feet. A member of the OECD and G20, South Korea, the world’s 11th economy and 7th largest exporter, with tech champions such as Samsung, SK Hynix and LG at the forefront, is one of the most represented at the last two major international fairs, the Consumer Electronic Show in Las-Vegas and the Big Retail Show in New York.
This recent development has been achieved due to government support programs such as TIPS (Tech Incubator Program for Startups). In 2017, South Korea created the Ministry of SMEs and Startups to sustain and strengthen this momentum. Venture capital investments also flowed into Korean startups and increased 78% in 2021, to more than $ 6.4 billion. The number of new jobs created by these startups in 2021 will exceed the number of jobs created by the four largest chaeobols or conglomerates combined: Samsung, LG, Hyundai and Kia. Finally, the birth of new giants like Kakao Corp, Naver and Coupang contributed to this Korean revolution.
“South Korea enters the world of tomorrow, the metaverse. Concrete, the investment of 186.7 million dollars to be dedicated to the country ‘s metaverse ecosystem is called “Enlarged Virtual World”, help stimulate, in particular, the development and growth of the country’s virtual cities, education and media industries. Clearly, South Korea has already entered the global chessboard and wants to impose its future rules on the commercial world of tomorrow. concluded by Guillaume Rio, Technology Trends Manager at Echangeur BNP Paribas Personal Finance.
Impact on Trade
In 30 years, retail has moved from the dominance of stores to a constellation of channels and infrastructures where e-commerce, dark stores, live streaming, social media, smartphones, delivery, directly to the consumer, and so on. The physical point of sale and e-commerce combine to such an extent that the store is gradually becoming the gateway to online commerce. Aside from the food market, many stores need to rethink their role, business model and their use. Place of entertainment, life, immersive or experience, the store is a medium!
- Nike stores are no longer places for transactions. They become ambassadors in their neighborhood like Nike on the Upper East Side or Nike of Williamsburg.
- At its outlet in Hudson Yards, Whole Foods Market promotes local growers who supply the store.
- The Saks Fifth Avenue brand has launched a unique partnership offer with WeWork, the coworking specialist. With SaksWork, the entire top floor of the emblematic store on 5th Avenue has been transformed into a coworking space. To access it, simply subscribe by day, week or month, by scanning the QR code to pay using your smartphone.
In this new Retail, blockchain technology will be central to future loyalty programs to enable the deployment of an ecosystem and the end of private programs. According to a Reciproci study, 78% of millennials are willing to change brands to participate in a multi-sector loyalty program. Owners of Clinique brand NFTs are thus guaranteed to have privileged customer status in stores, to receive free product samples for 10 years and they may even have the right to inspect future products, thanks to the establishment of an autonomous and decentralized organization (DAO).