Will Metaverse Affect Small Business Of India?

What is Metaverse?

­The term Metaverse may be new to us but was a well known term at least for cyberpunk freaks from the 90s. It has its roots from a science fiction novel, Snow Crash, released 1992. Neal Stephenson, in Snow Crash, defined metaverse as a 3Dimensional virtual space made in a way that can be accessed with a specific hardware and softwares.

In Novel, Hiro Protagonist, the main character used to enter the metaverse by wearing goggles (The VR ones) and earphones. He used to roam around a thousand mile long street exploring and trying to beat a computer virus which caused problems in the real world.

As big tech companies including Facebook (which renamed itself into Meta on 28 October 2021) along with Google, Microsoft and Intel started talking about metaverse, the concept again came into trend. The metaverse means a virtual world made in a combination of hardware and software devices. Hardware includes some high end Virtual Reality Headsets while various software’s can be used as per the compatibility measures.

Will Small Business Be Affected By It?

With internet invasion, users in India shifted more towards video content as compared to texts or images. At the same time Tiktok emerged as a competitor of all the social media platforms (most of which are owned by Meta). Tiktok came up as a short video platform in which users can create and share short videos of 15 and 30 seconds. As the government imposed a ban on Tiktok (due to some unspecified reasons), both Facebook and Instagram launched short video options for individuals and businesses. A short videos option is comparatively the best option to market the business as well as to share information in a short time.

Small businesses, whether in India or at global level are said to experience a lot of profit with the concept of metaverse as it can help users to try and use the products (virtually) before buying them. A similar concept is already taking place as many brands including Lenskart give a 3D try on option to buyers. Understanding the fact that Meta has the largest number of users in India as compared to any other country automatically turns it into a marketing tool for businesses. Micro, Small and Medium enterprises that often lack money can use Meta as a powerful yet budget friendly tool for band promotion.

What Is the Stage of Metaverse in India?

Though the concept dates back into the 90s the metaverse is still in its growing stage. Before imagining the metaverse coming to us in two three years or say in four five years. We must understand that the metaverse we are talking about is an integrated universe where multiple virtual worlds can connect, converse and transmit assets between each other; sadly we do not have that right now.

Facebook on their website has clearly mentioned that it isn't possible for one company (even if it is Meta itself) to build all of the metaverse by itself. Just like the internet, Facebook’s (or Meta’s) existence is not compulsory for the metaverse. The concept is in trial face and will take some time to become fully functional. In fact, it won't be fully developed until the next ten fifteen years or so. Even though it's frustrating for some of us who are eager to get started, it gives a chance to ask difficult questions about how it should be constructed.

Mark Zuckerberg - Why He Came Out With It

As per their official LinkedIn page, Meta initially started as a company that offers technology to help people connect, find communities, and grow their businesses. Facebook changed the way people connect when it launched in 2004. Messaging apps such as Messenger, Instagram, and WhatsApp further empowered billions of people. To help build the next revolution in social technology, Meta has moved beyond 2D screens and into immersive experiences like augmented reality and virtual reality. It also brings people closer and aims to give them the power to build community. 

Excited by the whole concept, Meta is pouring heavy money into the metaverse. CEO Mark Zuckerberg announced that Meta would invest USD 10 billion in its metaverse projects in 2021 during a Q3 earnings call. He highlighted “the magnitude of this bet on the future” while cautioning that “this is not an investment that is going to be profitable for us anytime in the near future.”

Businesses are turning to Instagram specifically because of its ability to reach out to their customers directly and provide reach not just across the country but also internationally. More than half a billion small businesses listed on Instagram add WhatsApp, phone number, or email in their bio, or encourage potential customers to contact them directly via direct messenger (DM). In India, over 45,000 small businesses advertise worldwide shipping in their bios to reach international customers using Instagram. Additionally, Instagram is a place where people connect with the brands and products they are most passionate about. Instagram users in India have created more than 1.2 million posts and comments to show their support for small businesses in the past few months. Around 90 percent of Instagram users follow a business.

“If you look at where the energy and action is, from a creator’s point of view, from a user’s point of view and, increasingly, from a marketer’s point of view, that is on short-form video, and that action is on Instagram Reels,” says Ajit Mohan, VP and MD of Facebook India (Meta). 

For example, Meta in India is running programmes like 'Born on Instagram' and '25 Under 25 Instagrammers of India', and setting up a Centre for Fuelling New Economy at its new office in Gurugram where it has said it will train 250,000 creators (as well as 10 million small businesses) in three years.

According to app intelligence firm Sensor Tower, approximately 21 percent of Instagram's downloads came from India at the end of June 2020, when Tiktok was banned. By December 2021, that share had increased to 39 percent.