Inspired by the popular open-ended video game SimCity, SK-II is launching a virtual hyper-realistic city for customers to spend time in, among the first in the industry.
Through games like Roblox and Animal Crossing, consumers have warmed up to creating digital identities in virtual hangouts, and brands want in. P&G-owned skincare brand SK-II has responded by launching its own virtual hyper-realistic branded world, SK-II City, for consumers to spend time in. Inspired by the city-building video game SimCity, SK-II City is based around iconic sites in Japan like Mount Fuji and the Tokyo Tower. Users can visit destinations, like a movie theatre to watch films created by SK-II Studios, or a backstage tour area to see behind-the-scenes footage from campaigns.
The virtual city was created by SK-II Studios and global digital marketing agency Huge. It took a couple of months to build according to SK-II’s global senior brand director YoeGin Chang, who declined to comment on the investment. She says that the launch was in response to changing consumer behaviour. (VR firm Sense-R says that third-party VR experiences can cost between $10,000 and $50,000.) “We were less concerned about cash outlay and more about our customers who are seeking more differentiated experiences online,” Chang says. SK-II City will be a permanent site fixture (rather than a temporary activation) and the brand plans to build it out, eventually adding a virtual store to browse and buy products.
SK-II
Users can’t currently interact with others online in SK-II City, but the brand has built Yumi, an AI-driven virtual human ambassador embedded within the digital city that people can talk to 24 hours a day. To play up the gaming aspect, users can collect “miracle drops” from interactions and purchases made within SK-II City, which act as points that the brand has to match by donating to one of its charities. The programme just launched in Japan and will be rolled out globally this year.
Creating a new branded virtual world isn’t easy and some brands may want to explore partnering with a popular gaming platform like Roblox, says Hackl. “You don’t have to create a full world but you can start by dipping your toes and doing little activations here and there.”
Lil Nas X’s virtual concert on Roblox generated seven-figure dollar sales in just a few days, rivalling Fortnite’s record-breaking Travis Scott event in 2020.
Roblox’s IPO in March was one of the most hotly anticipated listings of 2021. With 32.6 million daily active users interacting in millions of 3D virtual experiences, brands have shown interest including Gucci and Nike, says Christina Wootton, Roblox’s vice president of brand partnerships. “We recently have started hearing about brands considering the creation of special metaverse teams, just like how they put together teams to focus on specific social media channels not too long ago. This is the future of how people will learn, play, consume entertainment, try on and shop fashion, and interact with brands.” The platform is having “multiple conversations” with fashion and beauty brands that are planning to launch sometime this year, but Wootton declined to name who.
Not everyone is convinced. “[Branded VR experiences] are a fun and interesting idea but it’s probably five or 10 years ahead of its time. I don’t imagine there’s going to be positive ROI,” says Julie Ask, vice president and principal analyst at Forrester. “Is this the way we’re going to shop and spend considerable amounts of money in the next five or 10 years? Probably not. But every once in a while, something comes out of Japan like Pokémon Go, and it just takes off.”
Some critics warn that people might spend less time online post-pandemic and brands shouldn’t “put all their eggs into virtual worlds”, says Hackl. “While more people are heading into the metaverse right now, I also think that we will want to return to physical events and see artists perform live and be as close to them as possible.”
Key to the success of virtual brand worlds will be a combination of convenience, personalisation and fun. “New consumer habits were created over the past year. I think that people found so much convenience doing things virtually, if our experience is done right, it will be meaningful to our customers and make their time well spent,” adds SK-II’s Chang.