Beanstalk Summer Trend Report: The Virtual Issue

As a result of the pandemic and the new hybrid working world, there are still days where people don’t leave their homes. For some of us, it’s simply a matter of time. We want to get out for that walk; to get fresh air; to pick up lunch. However, the demands of the day just don’t allow it, and along the way we’ve discovered a very convenient truth…

We no longer need to leave the house for anything.

Human interaction? FaceTime!

Spanish class? DuoLingo!

April 15th? TurboTax!

Yes, it’s an obvious statement that the internet has made our world smaller and our day-to-day tasks easier. However, it is truly mind-blowing that our entire lives can now be digitized. From sneaker collections, to makeup applications, to a three-game parlay, it’s all just a tap away. We are living in worlds of our own creation, where our data is used to serve us more products and experiences that fit into our lives.

Here are some trends that will continue to make our lives simpler and more seamless.

Walkin' In Meta

While the metaverse and our understanding of it continue to evolve, one constant in web3 has been footwear brands launching virtual sneakers. Capitalizing on the collectability and customization components of sneakers, sportswear brands have been nimble and innovative in bridging the worlds of physical and virtual.

• Last winter, Nike acquired RTFKT, a leading brand that leverages cutting edge innovation to deliver next generation collectibles that merge culture and gaming. The footwear brand launched the Nike Dunk Genesis Cryptokicks, a range of 20,000 sneakers that can be bought as NFTs. The shoes have generated over $14 million in sales at a price point of $10,500-$12,500 each, with one pair selling for $186,000.

• adidas launched “Into The Metaverse” -- a collection of 30,000 NFT’s in collaboration with Bored Ape Yacht Club, PUNKS Comic, and gmoney. Owners also receive exclusive access to physical product launches. The NFT’s, priced at 0.2 ETH (approx. $800 at the time), sold out immediately.

• Puma recently announced a partnership with 10KTF, an online NFT shop run by Wagmi-San, a fictional tailor who previously worked with Gucci. The partnership allows owners to purchase clothes for their avatar and includes physical goods.

Consumer demand for community and collectibles remains high and brands are recognizing their value as points of difference for digital engagement.

You Bet!

Mobile sports betting is now legal in over two dozen states, with more expected to follow suit in the coming years. The market was sized at $61.5 billion in 2021 and is expected to exceed $114 billion by 2028. While men still make up the largest user base, the growth rate of female consumers outpaces men 115% to 63%.

• The NFL, NBA, MLB and NHL, as well as, NASCAR, MLS, the PGA Tour, and more, have forged partnerships with multiple mobile sports books. Additionally, teams and venues have their own official betting partners.

• Buffalo Wild Wings partnered with BetMGM to encourage usage of the platform within its restaurants. The relationship launched with a free-to-play game within BWW’s app.

• Hooters of America recently announced a partnership with DraftKings where diners scan a QR code to receive special offers within the app. Restaurant staff was trained to instruct consumers how to download the app and place a bet. A second partnership with PointsBet is expected to be announced later this year.

As more states legalize betting and consumer adoption grows, this space will be ripe for brand partnerships across food and beverage, fashion, events and more.

Beauty and the Blockchain

When the beauty verse and metaverse collide, there’s no telling what makeup magic can happen. Dubbed “Crypto Cosmetics,” these unique collectibles give beauty lovers a new way to express brand affinity, creativity and transform their relationship with makeup.

• e.l.f. (Eyes Lips Face) Cosmetics entered a new frontier with its digital gold and 100% crypto “Ne.l.f.Ts” inspired by its holy-grail products. All minted products were in accordance with e.l.f’s cruelty-free standard through the brand’s partnership with Bitski and Aerial, two sustainability blockchain platforms that track emissions and reduce carbon footprints associated with NFTs.

• Rather than selling NFTS, Clinique gave its rewards members the chance to receive free products for 10 years, along with three editions of NFT artwork that changed colors based on two of its most popular skincare and lip products.

• Nars commissioned three artists to each create an artwork inspired by its famous Orgasm product line, rather than launch digital collectibles of the products themselves.

• Dior’s beauty arm also aimed to attract a new generation of beauty lovers through its entrance to the metaverse. In collaboration with social media app Zepeto, the luxury brand enabled users to create 3D avatars of themselves and try its extensive range of cosmetics virtually.

Digital collectibles will continue to fuel and evolve not only how we connect to the beauty community, but how we express love for our favorite brands.

I'll Gladly Pay You Tuesday...

Layaway, previously a method of payment utilized by low-income consumers for high-dollar purchases, has gone high-tech in recent years, and the business is booming. With little to no interest and payment flexibility, brands can now create more access points for consumers who otherwise may have been priced out of a purchase. The global Buy Now, Pay Later (BNPL) market is expected to reach $39.4 billion by 2030.

• Afterpay is available to consumers in over 100,000 retailers and recently announced partnerships with Calvin Klein, Tommy Hilfiger and Nordstrom, where consumers can also use the service in-store.

• As part of its increased fintech offerings, Apple will be launching a BNPL service within the new iOS this fall.

• Authentic Brands Group and SPARC Group have partnered with Klarna to offer flexible ‘Pay in 4’ services to shoppers across their brand portfolios.

• PayPal, which launched a “Pay in 4” program in 2020 for purchases between $30 and $1,500, recently announced “PayPal Monthly” for purchases up to $10,000 to be paid over 6-24 months.

By making luxury purchases available to a wider audience, brands can creatively partner and market to engage and retain new consumers.

Order Up!

The drive-thru goes digital! Using never-before-seen mediums of virtual restaurants with “phygital” food, distilleries in the digital space and pixel-inspired beverages, the crossover of food and drink within the metaverse further blurs the line between how we live online and IRL.

• McDonald’s, Panera Bread, Wendy’s, Chipotle and other quick-service restaurants are opening virtual restaurants in Roblox, Horizon Worlds, and other metaverse platforms. In effort to improve the overall guest experience, the metaverse restaurants will enable consumers to place an order or prepare their food virtually without putting down their headsets; the virtual food is then be prepared by a brick-and-mortar location and delivered to their front door.

• Jose Cuervo became the first brand to announce a metaverse distillery. The digital distillery will live on Decentraland and provide visitors with education on tequila, limited-edition products and entertainment. This follows Heineken’s recent rollout of its first virtual brewery.

• Coca-Cola joined in the fun by debuting new drink, Coca Cola Zero Sugar Byte. Said to taste like pixels, the new beverage marks the first Coca-Cola flavor born in the metaverse; an early version of the beverage appeared in a new island in Fortnite.

As the digital footprint of our favorite food and beverage brands grows, so will our appetite for innovative metaverse launches in the future.

Bytes are for Kids

According to a report from Common Sense Media, 17% of children aged 8-18 report owning a VR headset, and 22% of tweens and 27% of teens have tried virtual reality. Despite this, there are concerns about “cybersickness,” privacy violations, misinformation and manipulation, risks of addiction and more that create hesitancy around letting children enter the metaverse.

To calm the qualms, leading digital media brands have rolled out their own kid-focused and kid-safe metaverses that mitigate any harmful effects.

• Lego and Epic Games recently teamed up to debut a “family-friendly” metaverse for kids. The new co-developed digital space will prioritize children’s safety, safeguard privacy and equip children and adults with tools to give them full control over their digital experience.

• Amazon leveraged the kid-focused digital experience space with the rollout of their new device, Amazon Glow, which enables kids to engage in safe video calling and interactive gaming features with family and friends. The addition to its smart home ecosystem boasts a dual projector and touchscreen interface that keeps kids engaged and safe online.

With the inevitable evolution of accessible technology, hopefully we’ll continue to see our favorite digital brands make safety for the whole family an utmost priority.

"On Call" For All

While the pandemic disrupted our lives in every way, it also made certain processes much more efficient. Whether physical or mental health, consumers no longer must brave parking lots and waiting rooms (and waiting rooms for waiting rooms) to see a doctor. Telehealth visits have increased 38x from pre-COVID levels and $250 billion of medical spends could be permanently moved online.

• Talkspace, which has endorsement relationships with Michael Phelps, Simone Biles, and Demi Lovato, partnered with Kimpton Hotels to offer virtual therapy sessions to hotel guests and employees.

• BetterHelp partnered with WeWork to connect its members to mental health resources and worked with Ariana Grande to give away 100K free hours of therapy services to encourage people to use the platform.

• Concierge medical service, Sollis Health has seen a CAGR of 150% since its launch in 2019 and recently raised $30 million in Series A funding. Members can book all services online and access virtual visits with licensed physicians on a 24/7 cadence.

With consumers embracing healthcare more frequently and employers committing to providing resources for them, we can expect to see providers and platforms seek innovative partnerships to increase both volume and retention of patients.

Making Cents

As the saying goes, “money doesn’t grow on trees.”

According to a recent survey from Forbes, 67% of parents and teens ranked money as one of their most discussed topics in the past six months, while 93% of teens said they believe they need financial knowledge and skills to achieve their life goals. A survey from leading financial literacy company, Greenlight reported that despite this belief of the critical need for financial literacy, the average grade on the National Financial Literacy Test is still a failing score of 64%.

In attempts to close the gaps in financial literacy for today’s youth, mobile apps have begun to pop up to foster financial education.

• Greenlight is a family fintech company whose mission is “to help parents raise financially smart kids.” Through establishing accounts with Greenlight, kids may acquire a debit card that teaches them how to handle money, all while being under guise of parental guardrails. The debit card is connected to an app that educates kids on basic budgeting skills, how to handle transactions and ideate investing strategies.

• ZOGO Finance is another leading app reinventing financial education through mobile games. Unlike other financial literacy programs, ZOGO was built by Gen-Z, for Gen-Z; this approach covers a different set of topics including everything from e-sports, to investing, to healthcare and insurance, and more, where users earn gift cards and rewards as they complete different learning exercises.

These new apps will enable kids to become enriched with how to manage their riches!

DTC Just For Me

E-Commerce has completely transformed the way we shop since the start of the pandemic. With DTC sales expected to reach about $175B by 2023, brands across all categories are leaning into the distribution channel to incite buzz and keep consumers loyal.

• Known for their out-of-the-box activations, Hidden Valley Ranch recently auctioned off its man-made “Ranch Diamond” and diamond-encrusted ranch bottle on eBay. After 80 bids, the first-of-its-kind diamond made of ranch sold for over $12,000. All proceeds went toward Feeding America, a national non-for-profit organization that works to combat food insecurity.

• Kraft’s Grey Poupon and McCormick’s Old Bay debuted their own wine and vodka, respectively, inspired by their robust condiment flavor palettes. Rolled out on unique DTC webstores, the limited-edition bottles created mass-hysteria from both loyal fans and confused consumers by the unique flavor pairings, ultimately selling both bottles out instantly.

• Digitally native brands have held tight leashes on their consumers through app exclusive products and prices, as well as early access drops for subscribers. Leading this charge are apparel brands like FIGS and Nike, and QSRs like Chipotle, among others. Consumers who download the mobile app or sign up for marketing emails can get their hands on products before they enter the mainstream, enabling more brand affinity and word of mouth of the exclusives.

Want to learn more about what's trending and how to leverage those trends for your business? Contact VP, Strategy & Partnerships, Todd Kaufman (todd.kaufman@beanstalk.com) or Coordinator, Business Development and Marketing, Whitney Rosenfeld (whitney.rosenfeld@beanstalk.com).