How gamification will impact the future of shopping

With brands increasingly incorporating both the look and feel of gaming environments into their shopping experiences, the IRL and URL worlds are set to become more interactive as we move forward.

The idea of ​​gamification is relatively simple: you take a feature of a game, such as the mechanics, the reward system or the design, and apply it to another field. As consumers become more interested in spending more time online, engagement in digital spaces is becoming more important. According to the New Consumer of 2022, forty-five percent of Generation Z and 43% of millennials feel more like themselves when they are online relationship.

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

The previous reluctance of brands to try out new types of content and strategies is waning, even for luxury brands. Overall, according to ESW Global Voices, the luxury goods sector grew fastest in the cross-border e-commerce category in the first half of 2021. In China and South Korea, more than 70% of millennials, generation X and of baby boomers shop for luxury items online. The Western market is growing, but at a slower pace, with less than 45% of shoppers in the Americas and much of Europe buying luxury goods online. However, as Covid rates fluctuate, this number could easily grow in 2022.

Brands that create in-game content
Getting into the metaverse or getting involved in gaming platforms has proved fruitful for brands in the fashion industry. As skins and in-game items have become more valuable, luxury fashion brands like Louis Vuitton and Balenciaga have seized the opportunity. Balenciaga is even create an internal division of employees to drive brand development in the metaverse. In addition to enabling the brand to sell goods in the digital space, entry into the gaming arena has opened it up to new consumer groups interested in fashion brands. Its aim was to make the shopping experience more interactive and engaging.

Louis Vuitton first entered the space by collaborating with League of Legends in 2019, when he created a physical collection and in-game digital skins. The LV X LoL physical collection was created in collaboration with Riot Games, developers of the League of Legends esports game, and sold out in one 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 advantage of the opportunity to officially enter the space. Roblox has 43.2 million daily active users, as of August 2021, showing the potential for collections launched on the platform.

For brands, the main problem is to maintain their brand identity in this new space and to engage a consumer base that is not easy to please. The Fabricant, a brand launched to be digital only, is now helping physical brands go digital. But, at the same time, not all game elements of a brand have to be a boss. Some brands are incorporating seasonal campaigns and experiences on platforms instead. Trinity Griffin, Marketing Specialist in the Digital Design Program Clo3D, She said, “Digital and physical brands have a completely different goal. [Traditional] brands look holistically at 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 nice that they can share an experience or create a campaign using the brand identity, but in a virtual space. “

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

At the moment, most of the retailer’s gaming features are focused on online discounts. They often offer users the opportunity to participate in the shopping experience, for example by inviting them to search for pop-ups or coupons on the brand’s website. Last year, 88% of US respondents said they used coupons for shopping while 77% of consumers they said they spent $ 10- $ 50 more than they would like when using coupons.

The high percentage of coupon users shows that there is an incentive for brands to gamify their shopping experience. But most of the brands using these strategies today are in the fast fashion industry, like Shein. Shen’s strategies include coupon wheels, where shoppers on the site can spin a wheel to get a random discount. And the pop-up windows grant rewards to users with the most logins per week. Both fast fashion brands and high-end brands like Rebecca Minkoff incorporate personalized text messages into their gaming strategy to bring customers to their ecommerce sites and fuel brand loyalty. As the gaming and fashion industries grow, these types of strategies will become more prevalent.

However, monetization in space is already causing problems, with Education which shows the links between gambling and gambling. As fashion e-commerce builds on these strategies, it could be subject to regulation to curb the links between addiction and shopping.

Mobile buying strategies
As users spend more time online, most of the time spent in front of the screen is on mobile devices. Many brands see this as an opportunity to develop mobile buying strategies through apps and social media platforms. Both Lyst, the fashion search engine, and MyTheresa ecommerce site hope to deliver the best in-app shopping experience. Lyst redesigned its app in the first half of the year. And, after releasing his IPO paperwork in May, MyTheresa demonstrated that its mobile orders accounted for over 50% of sales. Forty-two percent was made on the app.

The other side of mobile shopping is brands that interact directly with consumers through live streaming. In China, more than 200 luxury brands attended Alibaba’s 11.11 Global Shopping Festival, a live streaming shopping event in November. Brands including Gucci, Vacheron Constantin and Maison Margiela have partnered with Small Luxury Pavilion offer luxury services that are traditionally only offered in brick-and-mortar stores. These included membership privileges, consultations with brand representatives and after-sales services. Speaking about the event in Alizila, Alibaba’s news platform, head of the luxury division and head of the Tmall Luxury Pavillion Janet Wang, said: “Consumers no longer think in terms of the break between physical and digital. They want a consistent, unified experience from brands, whether they’re shopping online or offline. ”

Retailers like it Saks And Walmart and social media sites such as Pinterest they are all forging new partnerships with livestream shopping channels and influencers. According to a recent relationship from Coresight search, the live streaming market was set to hit $ 6 billion in 2021 and is expected to nearly quadruple in size within the next two years. As engagement grows through mobile shopping, live streaming will become a form of shopping, combining entertainment, commerce and content.

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