How gamification will impact the future of shopping

As brands increasingly incorporate both the look and feel of gaming environments into their shopping experiences, the IRL and URL worlds are set to become more interactive in the future.

The idea of ​​gamification is relatively simple: you take one characteristic of a game – like the mechanics, the rewards system, or the design – and apply it to another area. As consumers become more interested in spending more time online, engagement in digital spaces becomes increasingly important. Forty-five percent of Gen Z and 43% of Gen Y feel the most themselves the most when online, according to the 2022 New Consumer report.

For the fashion industry, the importance of gamification cannot be understated. As the pandemic has accelerated the rise of gaming platforms and e-commerce, games and mobile shopping sites are vying for the same consumers.

The previous reluctance of brands to try new types of content and strategies is fading, even for luxury brands. Overall, the luxury goods sector experienced the fastest growth in the cross-border e-commerce category in the first half of 2021, according to ESW. Global Voices. In China and South Korea, more than 70% of Millennials, Gen Xers, and Baby Boomers shop for luxury online. The Western market is growing, but at a slower pace, with less than 45% of shoppers in the Americas and most European countries buying luxury online. However, as Covid rates fluctuate, that number could easily increase in 2022.

Brands creating in-game content
Getting into the metaverse or getting involved in gaming platforms has proven to be fruitful for brands in the fashion industry. As in-game skins and items gained in value, luxury fashion brands like Louis Vuitton and Balenciaga seized the opportunity. Balenciaga is same creation of an internal division of employees to lead brand development in the metaverse. In addition to allowing the brand to sell products in the digital space, entering the gaming arena has opened it up to new consumer groups interested in fashion brands. Its goal was to make the shopping experience more interactive and engaging.

Louis Vuitton entered space for the first time by collaborating with League of Legends in 2019, when he created a physical collection and digital in-game skins. The LV X LoL physical collection was created in collaboration with Riot Games, the developers of the eSport League of Legends game, and sold in less than an hour on the European market. Since then, brand leaders Tommy Hilfiger have noticed that users are recreating the looks of its collections on platforms like Roblox, using digital design tools. Now the brand is taking the opportunity to officially enter the space. Roblox has 43.2 million daily active users, in August 2021, showing the potential of the collections launched on the platform.

For brands, the main challenge is to maintain their brand identity in this new space and to engage a consumer base that is not easy to satisfy. The Manufacturer, a brand that was launched to be digital only, is now helping physical brands go digital. But, at the same time, not all of a brand’s game elements need to be clothing. Instead, some brands integrate campaigns and seasonal experiences on the platforms. Trinity Griffin, Digital Design Program Marketing Specialist Clo3D, noted, “Digital and physical brands have a completely different purpose. [Traditional] brands take a holistic view of their product and then think about how they connect with the consumer. The manufacturer, [on the other hand,] aims to expand the brand identity of the brands it works with. It’s cool that they can share an experience or create a campaign using that brand identity, but in a virtual space.

Gamification of e-commerce
Reward systems in games can be very addicting, with many players treating these experiences as sports, taking into account rewards, losses, and time spent in a game. And the concept of in-game monetization easily translates to other transaction-based processes, including online purchases.

Right now, the majority of retailer gaming functionality is focused on online discounts. They often provide opportunities for users to engage in the shopping experience, such as getting them to search the brand’s website for pop-ups or coupons. Last year, 88% of respondents in the United States said they used coupons to make purchases, while 77% of consumers said they spent $ 10-50 more than they wanted to using coupons.

The high percentage of coupon users shows that brands are incentivized to gamify their shopping experience. But most of the brands using these strategies today are in the fast fashion business, like Shein. Shen’s strategies include coupon wheels, where shoppers on the site can spin a wheel for a discount. And pop-ups grant rewards to users with multiple logins per week. Fast fashion brands and more upscale brands like Rebecca Minkoff integrate personalized text messaging into their gaming strategy to bring customers to their e-commerce sites and build brand loyalty. As the gaming and fashion industries develop, this type of strategy will become more prevalent.

However, monetization in space is already a problem, with studies showing the links between gambling and gambling. As fashion e-commerce grows on these strategies, it may come up against regulation aimed at reducing the link between addiction and shopping.

Mobile buying strategies
As users spend more time online, the majority of their screen time is on mobile devices. Many brands see it as an opportunity to develop mobile purchasing strategies through apps and social media platforms. Lyst, the fashion search engine, and e-commerce site MyTheresa hope to provide the best in-app shopping experience. Lyst has redesigned its application in the first half of the year. And, after taking out his IPO documents in May, MyTheresa showed that its mobile orders represented more than 50% of sales. Forty-two percent was created on the app.

The other side of mobile shopping are brands that interact directly with consumers via live broadcasts. In China, more than 200 luxury brands participated in Alibaba’s 11.11 Global Shopping Festival, a shopping event broadcast live in November. Brands such as Gucci, Vacheron Constantin and Maison Margiela have partnered with Luxury pavilion Tmall to offer luxury services that are traditionally offered only in physical stores. These included member privileges, consultations with brand representatives, and after-sales services. Speaking to Alizila, Alibaba’s information platform, Luxury Division Head and Tmall Luxury Pavilion Director Janet Wang said, “Consumers no longer think in terms of the divide between physical and digital. They want a cohesive and unified experience from brands, whether they shop online or offline. ”

Retailers love Saks and Walmart and social media sites like Pinterest All are creating new partnerships with live buying channels and influencers. According to a recent report through Coresight Research, the live streaming market was on track to reach $ 6 billion in 2021 and is expected to nearly quadruple in size over the next two years. As engagement increases through mobile purchases, live streaming will become a form of shopping, combining entertainment, commerce and content.

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