Businesses are rapidly adopting digital transformation to keep up with today’s rapidly changing conditions. The intensification of competition not only in physical markets but also in virtual markets forces businesses to produce more creative and cost-effective solutions. Technology has become one of the most important factors determining competitive advantage in the business world.

As of 2021, it is seen that brands that use technology effectively are leading the market. The fact that technology giants such as Apple, Amazon, Microsoft, Google and Samsung are at the forefront of InterBrand’s “Best Global Brands” report reveals the importance of digitalization. Consumers’ shift towards cloud-based solutions and artificial intelligence services is one of the key factors in the success of these brands.

Metaverse: A New Digital Universe

Metaverse, one of the most talked about topics in recent years, attracts great interest as a virtual world and an alternative living space. The Metaverse can be defined as a platform that allows users to interact, shop, work and have fun in the digital world. However, this concept has also led to the emergence of different views.

While some critics argue that the Metaverse is an exaggerated and insufficiently user-friendly concept by technology giants, others argue that the Metaverse and Web 3 are a revolution shaping the future. The idea that Web 3 offers an infrastructure that overcomes the shortcomings of Web 2 and can create a new form of life is becoming increasingly widespread.

Metaverse Consumers and Innovation

Consumers are a fundamental element for businesses to compete and survive in the market. Digitalization is transforming not only businesses but also consumers. With the increase in time spent online, consumers have started to perform many activities online, from social interaction to shopping and information seeking.

Metaverse has an important place in this digital transformation. Consumers have been shown to enjoy shopping experiences on platforms such as the Metaverse and experience similar feelings to real-world experiences (Soares et al., 2015). However, the Metaverse is not only an entertainment space, but also an environment where shared value creation processes take place between consumers and companies.

Traditional consumer expectations have been replaced by experience-oriented demands to interact with products and services. Metaverse offers unique experiences to consumers at this point. For example, digital products can be experienced three-dimensionally in Metaverse, which strengthens the bond between the consumer and the brand.

Metaverse users are not limited to avatars or digital products. Many activities such as buying virtual land, watching concerts, visiting museums and shopping NFTs enrich user experiences. Such innovative applications are said to increase customer loyalty and brand engagement.

The Relationships Businesses Develop with Consumers in the Metaverse

Today, consumers are increasingly interested in innovative businesses. Consumers now expect innovative solutions not only in products and services, but also in the experiences and management approaches offered by businesses. Consumers want to go beyond traditional methods and demand a free shopping experience beyond geographical borders and time constraints. In this context, the Metaverse offers consumers unique freedoms such as watching concerts, taking virtual trips or buying digital properties.

Businesses that want to succeed in the Metaverse should focus on the following four elements:

1. Realism: Virtual spaces need to be realistic enough to allow users to be fully immersed emotionally in the environment.
2. Ubiquitous Access: It is important that users can connect to the Metaverse from any device (computer, tablet, mobile) and seamlessly transfer their virtual identities.
3. Interoperability: It is necessary to implement standards that will enable users to seamlessly transition between virtual environments.
4. Scalability: The system must have a robust infrastructure to support a large number of users at the same time.

These technical requirements help businesses provide easier and more effective experiences for Metaverse users.

The Role of VR, AR and MR Technologies

Virtual reality (VR), augmented reality (AR) and mixed reality (MR) technologies have become powerful tools for personalizing consumer experiences. These technologies allow users to bridge the gap between the real world and the virtual world when shopping. For example, with AR technology, consumers can virtually experience cosmetics or view artwork holographically. By investing in such technologies, businesses aim to offer consumers innovative and impressive experiences.

Augmented Reality Marketing (ARM) stands out as an approach that differentiates consumer experiences. ARM allows products and services to be introduced in physical environments with a digital interface. This technology, which is used in different sectors such as sports, cosmetics and art, can create a stronger bond between the consumer and the brand by making marketing content interactive.