In the current retail landscape, brands are increasingly required to engage with customers in the digital realm. With platforms like Roblox attracting 90 million daily active users, the importance of digital interaction cannot be overstated. Winnie Burke, head of fashion and retail partnerships at Roblox, notes that 56% of Gen Z respondents prioritize styling their avatars over their own appearance. This shift in consumer behavior underscores the necessity for brands to adapt and thrive in these virtual environments.
Harnessing the digital landscape for product testing
The gaming sector offers a unique opportunity for brands to experiment with new products in a virtual setting. Utilizing digital twin technology, companies can simulate various scenarios and analyze data to uncover emerging trends. For instance, by tracking the popularity of a ‘purple jacket’ in Roblox, brands can assess demand and make informed decisions about launching similar items in the physical market. This level of agility allows businesses to forecast trends using real-time data, fundamentally transforming traditional demand forecasting methods.
Adapting to rapidly changing trends
The race for real-time demand forecasting is intensifying. Retailers such as Temu, Shein, and TikTok are setting the pace by rapidly creating products in response to trending demands, outpacing their competitors. For brands to remain relevant, they must respond to trends swiftly and effectively, as the conventional six-month product development cycle is no longer sufficient. Consumers now expect ideation to creation within weeks, paving the way for the concept of a real-time supply chain. Brands will need to maintain visibility over their inventory, identify consumer trends before they emerge, and produce new offerings faster than their rivals.
Preparing for demand spikes
Demand spikes can originate from various sources, not just the digital realm. Product launches, promotional sales, or influencer campaigns can all trigger sudden surges in interest. A website crashing during a flash sale or peak season can be detrimental. Without a robust Order Management System (OMS), businesses risk downtime, slow performance, and ultimately, lost sales and customers. An agile OMS can empower retailers to scale operations during high-traffic periods, equipped with features like architectural decoupling and horizontal scaling to manage unexpected demand.
The Importance of real-time inventory management
To effectively manage demand spikes, accurate, real-time inventory visibility is crucial. Brands must implement systems that not only display current stock levels but also anticipate future inventory needs based on emerging trends. As the retail landscape continues to evolve, those who can predict and produce the right stock at the fastest pace will emerge as industry leaders.
Retailers taking advantage of the virtual world
Nike has made notable advancements in the virtual retail space, launching Nikeland on Roblox—a virtual world where users can participate in athletic games while donning Nike gear. This platform allows Nike to test product designs and engage with consumers in real-time. Additionally, the company has ventured into the digital collectibles market by creating and selling virtual sneakers as NFTs, generating significant revenue.
Similarly, Snapchat has incorporated augmented reality (AR) features that enable users to virtually try on makeup or clothing through their app. Brands like L’Oreal and Gucci leverage this technology to drive direct purchases from their online stores. The ability to gauge consumer interest in a product virtually before a physical launch provides invaluable insights into preferences.
The recent surge in interest surrounding the Minecraft Chicken Jockey character exemplifies how the intersection of gaming and commerce presents unique opportunities for brands to engage consumers innovatively. As platforms like Roblox and partnerships with Shopify continue to evolve, the digital landscape is redefining commerce. Brands that can swiftly anticipate and respond to rapidly changing trends will be well-positioned to flourish in this new era.
The article was written by Mary Reschar, head of product marketing, Fluent Commerce.
