Abstract

The case study “Nike’s Metaverse Foray: Exploiting a Revenue Opportunity or Riding a Fad?” contemplates the long-term prospects of the foray of US-based sportswear giant Nike, Inc. into the metaverse. The case starts out with a brief history of Nike and the reasons for its emergence as the ‘most valuable apparel brands in the world’. With the drive to always be at the forefront of technology adoption, Nike had over the years, undertaken digital transformation and made strategic investments in technology. The case then discusses how the company had ventured into the metaverse through various experimental avenues that included acquiring a virtual sneaker company; forging partnerships with gaming platforms; introducing blockchain-based digital collections; and actively securing its brand identities by filing trademarks for its virtual sneakers and logos. By leveraging the metaverse, Nike aimed to enhance brand engagement and increase brand awareness among customers, especially members of Gen Z. The case highlights the potential of the metaverse to emerge as a new tool for brands to market products and connect with consumers. As of 2022, Nike was the world’s highest-earning brand through digital commodity sales. Considering it was early days of the metaverse, can Nike successfully traverse the unexplored space?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the influence of evolving technology on consumer behavior.
• Infer the art of leveraging emerging digital innovations to enhance customer engagement.
• Devise strategies to target the growing but elusive customer segment – Gen Z.
• Explore the metaverse’s impact on e-commerce.
• Analyze the strategies to be used to stay ahead of the curve with regard to a new technology.

Keywords

Metaverse; Metaverse Marketing; New Revenue Streams; Targeting Strategy; Virtual Commerce; Immersive Experiences; Digital Marketing; Brand Engagement; Community Building; Virtual Sports Events; Consumer Behavior; Brand Loyalty; Innovation; Digital Transformation; Technology Integration