Hype or a trend with substance?

Often considered as the next iteration of the internet, the metaverse is expected to play a key role in the digital transformation of the economy. But is it just hype, or a trend with real substance? We spoke to Arnaud Lambert, Director Digital Transformation, and Sara Bouchon, Director Market Intelligence at Luxinnovation, to find out more.

“Imagine a virtual world where billions of people live, work, shop, learn and interact with each other – all from the comfort of their couches in the physical world.” This is how Techtarget.com introduces the metaverse, a concept that it defines as “a single, shared, immersive, persistent, 3D virtual space where humans experience life in ways they could not in the physical world”.

Early-stage concept

“Today, we are using technologies such as virtual or mixed reality, or digital twins, which all imply interactions with digital copies of physical objects. However, the metaverse goes much further: it is a new world, offering total immersion and a real feeling of presence in a virtual environment that has strong links to reality,” says Arnaud Lambert.

The expected growth is enormous: GlobalData reported a metaverse market size of $22.8 billion in 2021, but predicts that it will reach a staggering $996,4 billion in 2030. “The potential seems limitless, and the metaverse is expected to have a huge influence on society,” says Mr Lambert and compares it to the early stages of the internet which, although much limited in the beginning, has revolutionised our private lives and business practices. “At the same time, the metaverse is still at a very early development stage. Expectations still have to be confronted with reality, and the technological challenges are huge.”

Luxembourg and the metaverse

As a disruptive technology and catalyst for innovation, the metaverse is obviously on the radar of the Ministry of the Economy and Luxinnovation. In July 2022, Luxinnovation’s Market Intelligence department conducted a study to better understand which companies have positioned themselves in the metaverse market in Luxembourg.

“There are currently three main metaverse projects in Luxembourg: the Duchy, the Luxembourg Megaverse and a planned project by US metaverse leader Infinite Reality,” explains Sara Bouchon. “This is a starting point, but we wanted a more complete understanding of all the players that position themselves in this market. In addition to analysing various databases, we spoke to several key players to get their input. Their feedback was highly valuable, and I thank them all for their contribution.”

The analysis made it possible for the Market Intelligence team to categorise Luxembourg’s metaverse players in five categories, depending on their level of involvement. “We called the first category the ‘metaverse enthusiasts’,” says Dr Bouchon. “They are the front runners, who are involved in the current projects and who have business models based on technologies that are essential for the metaverse, such as virtual and augmented reality.”

The ”metaverse observers” express their interest in the market, but are waiting to see how it evolves before getting fully involved. The “metaverse enablers” are not directly involved in the metaverse value chain but can help build the ecosystem and facilitate access to the market. “This includes research centres and consultancy firms, for example,” Dr Bouchon explains. The “early bird adopters” are companies that are involved in at least one of the local projects. The final category, “metaverse investors”, are investment funds located in Luxembourg who have already invested in one or more metaverse companies, although none of them are currently located in Luxembourg.

“The number of Luxembourg players listed in our metaverse study is still modest, but it is important to take into account how young the market still is,” says Dr Bouchon. She also points out that the analysis was done 6 months ago. “In case there are additional players that think they should be included, we invite them to contact us at knowledgehub@luxinnovation.lu.”

A future of opportunities and challenges

Currently, the metaverse is mainly used for gaming and social media, but there is huge potential in other fields of application. “I think it will give birth to new business models in virtually all industries,” says Mr Lambert and mentions, as an example, the recently revealed FIAT Metaverse Store where customers will be able to discover, configure and even purchase the New 500 with the help from a real person ready to answer any questions. “Another interesting trend is that the hardware component of the market – consoles, headsets, glasses, processors and so on – is expected to have a bigger turnover than the associated software.”

Nevertheless, the challenges are huge. “The user experience is still not great: charging is slow, things get stuck and interactions often leave much to be desired, while user expectations are very high,” Mr Lambert points out. “One metaverse is still not connected to another, and much development will be needed before users can move freely between different environments. Building a good quality corporate metaverse is also incredibly expensive.”

He also emphasises the need for sustainability. “The extensive needs for computing, graphic and network power mean that the metaverse consumes enormous amounts of energy, which is obviously a major issue that needs to be handled. Another one is the need for rules, security standards and compliance. Today, the metaverse is like the Wild West where everyone does what they want, but the security risks are very real. Operators cannot only collect data on user behaviour, like they do on the internet, but also biometrical data related to how users move, speak and so on. The legal framework will evolve, but this takes time.”

Infinite potential

So, is the metaverse just hype or the next big thing to come? Only time will show, but both Dr Bouchon and Mr Lambert believe in its potential for Luxembourg. “Luxembourg is geographically small, but the potential in the metaverse is infinite,” Dr Bouchon says. “With our top-range data infrastructure and expertise, we should definitely continue to evaluate how we can play a role in this development.”

Download a copy of the Luxinnovation Market Intelligence report. Entering the metaverse market: Key players in Luxembourg

https://www.luxinnovation.lu/wp-content/uploads/2023/02/lxi-mi_lu-metaverse-ecosystem-mapping_for-publication.pdf

History and potential

China was a relative latecomer in digitalisation, yet in the past twenty years it has witnessed a staggering growth in internet usage, and it is now by far the biggest internet market in the world. With over 1 billion internet users, its digital population trumps the total population of the United States and European Union combined.

Size is not the Chinese digital landscape’s only striking feature. Due to a combination of governmental restrictions and cultural distinctiveness, the majority of internet platforms commonly used globally (Google, Facebook, Amazon etc) are not accessible and used in China. This has created a unique ecosystem in which local platforms have substituted in usage and in many cases surpassed global platforms in functionalities and sophistication.

Owing to its size and captive audience, China offers Western companies significant potential to export their products and increase their sales on the huge online marketplaces. However, China is very different and successfully doing business there, requires a full understanding of how things work and how to go about optimising the opportunities available.

With help from local experts, Luxembourg’s Trade & Investment office in Shanghai has put together a detailed overview of the digital landscape in China, including e-commerce outlets and a list of dos and don’ts to penetrate this dynamic and unique market.

You can read more under https://www.digitalguide.tradeandinvest.lu/foreign-markets/foreign-markets-china/#service1

and get in touch with our office in Shanghai for more information or assistance.

https://www.investinluxembourg-china.com/contact-us/

Included in the Foreign Markets section are the key topline features of the Chinese internet:

• Its population is enormous, with over 1 billion users. Internet penetration stands at 73.0%, which is very high considering China’s population of over 1.4 billion users. A comparable country by population, India, has a penetration rate of only 47.0%.
• Access mostly happens via mobile. Over 99.7% of users connect via mobile and not necessarily via computer, which is higher than many Western countries. This has important repercussions, namely the Chinese users’ preference of apps over websites.
• E-commerce is a way of living. China is the only country in the world where more purchases happen online than offline. In Western countries, only around 10-15% of purchases are made online, with offline shopping still being prevalent.
• Chinese users mostly browse the Chinese web. Government restrictions on foreign platforms and relatively little foreign language proficiency shield the global internet from users, who mostly browse local platforms in the local language.

How can the guide help you?

These characteristics make it apparent that the Chinese internet requires companies and organizations to rethink their strategy and entering China online cannot be tackled as “adding just another language on the official website”. These key rethinking strategies will be addressed in depth in the following sections of this guide.

These are the topics covered in the following sections:

• Chinese digital users and their specificities. Understanding how Chinese use the internet in a profoundly different way from the West is key in communicating to them properly, on the right platforms and with the appropriate strategies.
• E-commerce in China. China is the world’s biggest e-commerce market by a long mark and Chinese online shoppers behave in a very peculiar way. This section will list the main e-commerce characteristics and platforms in the country.
• Cross-border e-commerce. A relatively new regulatory framework that allows companies to sell their products in China without being physically in the country, its features and differences from traditional e-commerce will be addressed here.
• Social media in China. China has the world’s most social media users, none of which use the Western social networks readers are familiar with. This section will list main platforms and the way users interact on them.
• Digital marketing. This section will introduce the foundations of promotion and advertising online in China, with a particular focus on companies that are just starting to promote themselves the Chinese internet.
• Legal considerations. This section will list a few legal matters companies will need to be careful about before entering China through online. Despite not being a definitive legal guide, it provides a starting point for companies to seek professional legal support.
• Dos and don’ts. A list of 10 positive and 10 negative recommendations based on previous successful and failed examples of foreign companies entering the Chinese digital ecosystem.

In 2020, everyone was interested in digitalisation and the importance of having a strong online presence because it was the only channel available. Two years later, it’s less of a topic. However, to believe that working on your brand image online is just a passing trend would be a very big mistake!

But what is brand image? Or what we call “branding”? In a few simple words, it is your graphic and visual signs and your way of communicating. It ranges from your logo to your slogan, from your colours to the font you use.

Take for example IKEA. Everyone knows their blue and yellow. Everyone also knows the famous slogan “IKEEEEEEEA”. The same goes for McDonalds with their yellow and red colours. Apple and Tesla are also brands that have created a premium brand identity that is simple, technological and ahead of its time.

Now that we’ve clarified what online branding is, why is it so important? This “universe”, this consistency allows you to do several things:

1. Be easily identifiable (and therefore stand out from your competitors);
2. Affirm and transmit your values;
3. Create a sense and desire to belong to your own brand because people recognise themselves in your values.

So the next question is “How can I work this?”

1. Ask yourself the right questions:
2. Who is your persona (who is your typical customer?)
3. What are the values you want to transmit?
4. What tone do you want to use?
5. Choose colours and font that convey these values
6. Update your visuals (website, flyers, social networks) so that they are in line with the universe you have created
7. Communicate on this change and use the chosen tone in all your communications

If you want to learn more, take advantage of free workshops organised by the House of Entrepreneurship or trainings, such as the “Boost your business” cycle, organised by the House of Training.

What is Social Listening?

Social Listening is about following online conversations to gain relevant insights. For example, you can track mentions of your brand, specific hashtags related to one of your campaigns, or more global conversations related to your sector and competitors. Listening to conversations will help you find insights about consumers in order to make data-driven strategic decisions.

How can this help businesses?

If you don’t listen to consumers, you won’t hear about the difficulties they face, you’ll ignore requests for help, and you won’t get feedback on your products. If you don’t listen, you simply won’t know what’s going on!

“Social networks allow opinion to be expressed, where it is and in the formats that correspond to it. The challenge today is to follow this expression and analyse it to better understand the real issues of concern and the trends. Relevant analysis of opinion is now essential for building a successful marketing or communication strategy. Companies and their managers must listen to opinion in order to understand their audiences and respond in a relevant and effective way to their expectations and needs.

Véronique Reille Soult, Co-Founder, Backbone Consulting

Example:

In September 2022, the American brand Dove, launched its #KeepTheGrey campaign on social media. Its aim was to change the perception of grey hair and combat ageism in the workplace. The inspiration for the campaign was the firing of Lisa LaFlamme, a television journalist, after she let her hair go grey.

Dove changed the colour of its logo and encouraged other brands to do the same. With 5K likes on Instagram and 20K engagements on Twitter, the campaign went instantly viral.

As this example shows, the statistics and insights gathered by social listening tools can help your company evaluate its activities and inform its overall social media strategy.

Audience segmentation and influencer analysis will identify the most promising markets and groups to target. Insights include the best times for engagement, sharing statistics, sentiment, reach and impact.

Tracking this information allows you to judge the visibility and brand perception before and after your campaigns, so you can evaluate their effectiveness and adjust them for future campaigns. You will also be able to identify and analyse trends and get ideas for product development.

For marketers, tracking this information reveals new opportunities. Finding the words and phrases that consumers use allows you to write content that resonates and speak the same language.

Brands can join the conversations and, because they have listened, they can provide real help and advice, and offer products that consumers demand, rather than thinly disguised sales messages. As a result, brand visibility improves, trust increases, leading to more qualified leads and lower churn.

How to use social listening?

Social media monitoring is more than just checking your mentions and notifications regularly!

For example, did you know that 30% of tweets that mention a brand do not use the brand’s Twitter handle? Other consumers will misspell your brand name. So you’re missing out on a lot of engagement opportunities!

In addition to making sure you capture all mentions of your brand, think of all the benefits related to customer service, influencers, or performance opportunities for your brand…

Let’s go through some use cases together!

Improve your content strategy

Social Listening allows you to improve your content strategy, by improving it according to your audience’s interest. You will be able to identify trending topics, keywords and hashtags that you should use in your future posts and content.

By identifying the topics that are important to your consumers, you will be able to participate in the debates, lead the conversations and gain visibility.

Practical tip:

After publishing your content, monitor the engagement and spread of the message. Use AI-based sentiment analysis to identify what grabs your audience’s attention, and replicate this pattern across all channels and campaigns.

Improve customer service

It has become normal for consumers to ask for help on social media rather than email or call customer service. On Twitter, 60% of customers expect brands to respond to their questions within the hour. If a brand does not use social listening, these minor issues can quickly turn into a major PR crisis.

The same study shows that pleasant and effective customer service can lead to 76% of customers recommending a brand.

A social media listening strategy will allow you to understand your customers’ issues, not miss these attempts at interaction and help your existing customers while gaining new ones.

Practical advice:

Make sure you track all variations of your brand, with and without the @ symbol, as well as common misspellings, e.g. talkwaler, talkwater, tallwalker.

Understanding your competitors

Competitive analysis should be part of your social listening strategy. This data will allow you to develop a strategy that will meet new customer demands and possibly win customers over the competition.

Practical tips:

Track keywords that relate to your competitors to understand their behaviour, how they engage with consumers, their marketing strategy and future plans.

You should also track keywords related to any negative comments about your products and those of your competitors.

Identify the best influencers for your brand

74% of consumers rely on social media to guide their purchasing decisions. Influencers’ opinions are highly valued and consumers listen to them.

That’s why 94% of marketers say they use influencer marketing, which generates 11 times the return on investment of traditional marketing.

Listening to social media allows you to track which influencers are sharing your content, advertising campaigns and posting reviews. This data will help you find influencers that your business can work with to further promote your products.

Talkwalker’s influencer network shows the dominance of Premier League specific content in terms of engagement, although there is a close community of FPL influencers who help amplify this content.

Once you’re working together, social media listening can help you monitor your influencers to ensure they stay on track with your influencer marketing strategy.

Practical tip:

Track hashtags, keywords and phrases. Working on a new campaign? Identify the best hashtags, keywords and phrases to write better content. You can also use a social listening tool to track what’s being said about your campaign.

Analyse your audience

If you want consumers to buy your products, you need to understand their needs.

Analysing your audience will reveal demographics (age, gender, location, etc.), when they are online, what platforms they use, what makes them happy, and what they struggle with.

Practical tip:

Using Talkwalker’s Consumer Intelligence platform, you will understand how your audience feels with our Blue Silk™ AI-based sentiment analysis. The negative and the positive. You can then plan promotional strategies that target a specific segment of your audience with personalized messages.

Generate more leads

Your social media listening strategy can help generate new leads for your business and increase engagement with potential customers. Identify the keywords that consumers use when they search for products or services similar to yours.

Practical advice:

Follow online conversations, to understand what consumers are asking for and what they want from a brand and its products. Meet consumers, using their language, and talk to them about their needs. Offer them a free demonstration.

Choose the data sources you need to track. Don’t overload your team by collecting data from all available sources.

Who can use social media monitoring?

Social media listening is not restricted to certain industries. Companies of all sizes and in all sectors can and should use social media listening. Today more than 2500 brands worldwide, such as Adidas, Maisons du Monde and Somfy, use the Talkwalker platform.

“Not only are online conversations essential for making short-term decisions in response to an ever-changing world of temporary gridlock and shifting societal rules, but they have become a fundamental basis for medium-term business planning and for predicting the long-term effects of the pandemic on future consumer behaviour.”

Tiankai Feng

Global Director, Voice of Consumer Analytics, Adidas

The fight against the info-epidemic is likely to continue into the future. At UNICEF MENARO, we will continue to listen to our audience and communicate the importance of trusting only credible sources.

Juliette Touma, Regional Communication Officer, UNICEF

Conclusion:

As you can see, social listening will help you understand consumers: what they say and what they think. About you, but also about your competitors. You’ll identify consumer data that will help you measure your brand awareness and find ways to improve your communication and products. Listening to social media will save your business time and money!

If the following are important to your business, a social media listening strategy will keep you on track…

– Brand health: brand equity, brand awareness – assess the health of your brand through benchmarking.

– Brand reputation: track the volume and sentiment of conversations, so you can immediately address spikes in negative mentions.

– Marketing and PR campaign impact: monitor your campaigns, product launches, events, etc., for real-time consumer insights, sentiment and user-generated comments.

– Competitive analysis: competitive intelligence on customer numbers, influencers, sales, social media strategy, paid advertising, PR tactics, customer sentiment towards their brand and products.

– Finding the best influencers: those who talk about your brand and products, or those in your industry who work with your competitors.

– SEO: although we talk about listening to social media, you can monitor the web as a whole – news sites, review sites, forums, blogs, etc. Find mentions of your brand without links. Monitor industry keywords to find high profile sites that you can approach for links.

– Targeted content: use social listening to track industry trends, events, key people, which can guide your content strategy.

About Talkwalker

Talkwalker is the #1 Social Listening and Consumer Intelligence platform, born in Luxembourg and exported worldwide, that helps brands get closer to their consumers. Recognised as a leader in Consumer Intelligence and Social Listening, Talkwalker combines cutting-edge social analytics and AI technology with unstructured data expertise and an international team of insight and data analysis experts.

Talkwalker helps brands make consumer-centric decisions, enabling them to innovate smarter, run more effective campaigns and improve customer experiences. With teams around the world, Talkwalker helps more than 2,500 brands connect with consumers and accelerate their growth. To learn more about Talkwalker, visit www.talkwalker.com or request a free demo.