✔️ just did it
Nike's attempt to tackle the metaverse.
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The Big Story
Who would've thought that Facebook's decision to rebrand itself and enter into the metaverse would cause such an enormous impact on the industry? But well, here we are.
Following the social media giants' announcement, Microsoft also revealed its plans to double down on its metaverse ambitions by allowing users to interact and collaborate in 3D virtual avatars in workspaces and homes.
But it's not alone. Sportswear giant Nike is now gearing to dive into the metaverse.
As per the U.S. Patent and Trademark Office, the Oregon-based apparel firm has filed a handful of new trademarks this week, indicating its plans to make and sell digital Nike-branded sneakers and apparel. It plans to trademark some of its well-known assets such as the iconic “Just Do It” tagline along with the Nike swoosh, its SNKRS logo, and the Air Jordan “Jumpman."
Nike plans to leverage these assets under downloadable virtual goods, retail store services, and entertainment services categorized under sports equipment, footwear, arts, apparel, toys, etc.
Along with these trademark requests, the company is also looking to staff up in this space. Last month, Nike posted two new metaverse positions, indicating that it's looking to hire virtual material designers.
While it may seem like Nike's jumping on the bandwagon, the reality is far from it.
Patent filings from 2018 reveal Nike's plans to lay down the groundwork for its intellectual property for the virtual world, including avatars, intelligent electronic shoes, digital sneakers, and virtual drops.
Last year, Nike sold digital Air Jordans in the popular video game Fortnite worn by rapper Travis Scott and allowed people to virtually try on the sneakers using basic AR technology. It also partnered with online gaming platform Roblox in 2019 for an Air Max event where it created 'exclusive bundles' that included digital versions of its Air Max 720, Air Max 270, and Air VaporMax sneakers. Nike also teamed up with video game publisher 2K for a 'Nike Gamer Exclusive' event where players could unlock 10 limited edition sneakers.
This seemingly aggressively digital-first strategy shouldn’t come as a surprise considering CEO John Donahoe’s previous experience at eBay and ServiceNow. Since January 2020, when Donahoe took control, Nike has been on a virtual hot streak, reporting an impressive 147% growth in its fourth quarter.
The company is also capitalizing on one of the most viral metaverse strategies: launching NFTs. Back in 2019, it acquired the patent for its blockchain-compatible sneakers known as 'CryptoKicks.' Each pair of these sneakers has a unique identifier that essentially creates a digital scarcity by linking it to a physical shoe. You can acquire CryptoKicks at a sporting event, sell them to other users, or keep them in your digital wallet…whatever you want!
The possibilities that metaverse brings with it is enormous, and almost every firm is trying their best to capitalize on it. Following Nike, luxury fashion brands like Gucci and Balenciaga have now hinted at a potential collaboration in the digital sphere.
While the attempt by companies to gamify e-commerce is transformational, it's not immune to online mockery and derision. And these criticisms are valid to a certain extent because, honestly, how do you design an authentic digital experience that doesn't look like a desperate cash-grab? How do you justify the real-world value of digital items?
While many similar questions float on social media every hour, the grand metaverse journey goes on...
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