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How Web3 technologies help connect with Gen Z & Alpha

Jan Gutkuhn
Jan Gutkuhn
Director Web3 & Partner
4 min read
7 June 2023

At the OMR Festival 2023 in Hamburg, we held the masterclass Virtual Showrooms, Metaverse, Roblox & Co. – How Brands Use New Web3 Technologies to Connect with Gen Z & Alpha. We took a look at best practices as well as the opportunities, challenges and first use cases of the two brands essence (cosnova GmbH) and H&M. We showed our audience how to start sustainable Web3 projects as a brand or retailer and how to build long-term relationships with young target groups. 

Couldn’t attend the masterclass? No problem! We have summarised the most important takeaways for you below.

Web3: The next era of the internet

The development of Web3 compares to the emergence of the internet in the 90s. Websites were initially perceived as superfluous because the focus was on TV and print. The same was true for e-commerce in the 2000s, as it was firmly believed that consumers did not need online shops because in-store shopping was preferred. We saw it yet again with mobile apps in the 2010s, as customers preferred to shop for products on their desktop. But now in 2023 we know how important all these new channels and developments have become for today. 

This development story repeats itself once more with regard to Web3, AI and gaming. Those who resist today because they are convinced that these are only short-lived trends will likely be surpassed by their more savvy competition tomorrow. 

Now is the time for companies to come to grips with Web3, AI and gaming, before it explodes. Many brands are already dealing with this and already in the starting blocks to launch their Web3 experiences, if they haven’t done so already. 

Gaming as a new touchpoint with Gen Z and Alpha

Gen Z and Alpha already spend 25% of their free time gaming and in virtual worlds. This is more time than that spent with any other type of entertainment, like Netflix or social media (!). That’s why these types of platforms offer the perfect touchpoint to reach the young target group and build or strengthen a relationship with them.

The combination of emerging technologies with a new generation of consumers with new needs and different media consumption behavior, is leading to a paradigm shift. Most notable? The shift from flat to immersive and from social to gaming and meta.

Beauty brand essence uses Roblox to connect with young target groups

Roblox currently has an average of 67.3 million daily active users, which is just one more reason to evaluate and implement Roblox as a possible touchpoint. Stay tuned for more information on how essence will use Roblox coming soon!

A virtual showroom to launch the Web3 Innovation Journey

The virtual showroom that DEPT® and Journee developed for H&M launched the fashion brand’s Web3 Innovation journey. It has increased visibility and relevance for Web3 across the entire company. Feedback from Gen Z on the showroom was 85% positive and 69% said the showroom had sparked their interest in a virtual H&M brand experience. H&M subsequently enhanced the Showroom for a concert by a popular band in the Philippines and the Average Time Spent was 12.5 minutes (!). In addition, the survey of users showed that there is major interest in Phygital Items with an NPS of around 98%.

On the whole, we are seeing a shift in consumer behaviour altogether: Gen Z & Alpha spend significantly more time in virtual worlds than previous generations. For brands, this means that it is now high time to invest in Web3, AI and gaming to avoid being overtaken by the competition.

Want to learn how to plan or take your Web3 strategy to the next level to build long-term relationships with young audiences? Let’s talk!

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Director Web3 & Partner

Jan Gutkuhn