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Metaverse and Digital Twins: An Opportunity to Increase Retailers' Profitability? An Exploratory Research Using Nike Case Study and Retail Managers' In-Depth Interviews
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Author(s): Joaquim Monteiro Pratas (Universidade da Maia-ISMAI, Portugal & ISCAP, Polytechnic of Porto, Portugal)
Copyright: 2023
Pages: 19
Source title:
Management and Marketing for Improved Retail Competitiveness and Performance
Source Author(s)/Editor(s): José Duarte Santos (Accounting and Business School, Polytechnic of Porto, Portugal), Inês Veiga Pereira (Accounting and Business School, Polytechnic of Porto, Portugal)and Paulo Botelho Pires (Centre for Organizational and Social Studies, Polytechnic of Porto, Portugal)
DOI: 10.4018/978-1-6684-8574-3.ch011
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Abstract
The purpose of this research is to assess the opportunity to increase retailers' profitability through metaverse stores, digital spaces, and digital twins. An exploratory methodology using Nike pioneer case studies and in-depth interviews with retail managers was used. The case studies analysis focused on the Nikeland store on Roblox and the Nike virtual store in Milan through Matterport 3D technology. Additionally, five retail managers were interviewed expressing their perceptions about the advantages, disadvantages and risks, and challenges and precautions in the implementation of metaverse stores and digital twins in their organizations. The findings demonstrate that these technologies have the potential to increase sales growth, market share, capital-to-labor ratio and promotion efforts, and therefore retailers' profitability. Moreover, the implementation can reduce inventory levels and operational costs improving the overall efficiency and profitability of retailers. The study also identified key measures to be considered when implementing these technologies.
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