The gaming industry has evolved from a niche pastime to a global powerhouse, with a projected value of more than $665.77 billion by 2030 and an expected 3.32 billion players this year.
For the retail industry, the benefits of collaborating with gaming brands are substantial. Retailers can instantly connect with a highly engaged, diverse audience that often extends far beyond their traditional target market.
What’s more, retailers can seize the chance to run targeted ads, cross-promotional campaigns and product placement; all of which offer unique ways to improve brand visibility, engage customers and differentiate brand experiences.
It’s clear that gaming networks are no longer simply about gaming. These virtual arenas have become go-to social networks. Now, businesses must begin to regard these virtual spaces as addressable commerce markets.
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Some brands have already seen the opportunity it presents. Gucci has launched clothing available for purchase on Roblox, Louis Vuitton collaborated with Riot Games to allow for the purchase of luxury “skins,” and Ikea recently announced a line of products specifically for gamers.
Yet despite its immense potential and the more astute brands catching on, many retailers remain unconcerned with the gaming industry’s meteoric rise. They’re missing a significant opportunity.
It’s an Open-World Game Waiting to be Explored
The slow uptake partly results from outdated stereotypes of gamers and a general lack of understanding of the industry. In reality, each game attracts a wide demographic, and the industry has evolved into a vast, highly diverse community.
Recently we’ve seen a significant uptake from older generations, with gamers aged 55 to 64 rising by 95% from 2018 to 2022, peaking at 47% in 2021. As people who didn’t grow up with video games now discover them alongside younger audiences, the potential consumer base for retail brands expands significantly.
This is why the gaming industry presents a prime opportunity for retailers – it’s an open book. Age, seniority or background are irrelevant; what matters is the passion they share for gaming.
People love discussing their favorite games and interests. The more they watch and play, the more they buy and talk about products, creating opportunities for brands to enhance their visibility.
Long-term loyalty is another benefit of entering the gaming industry. Unlike the fleeting marketing cycle of a film or TV launch, which may fade from conversation shortly after release, a game’s lifecycle can endure indefinitely. Take World of Warcraft, which has been out for 20 years and has cultivated a community that is more engaged today than ever before.
For retailers, this overrides the fundamental need to piggyback on a new game launch. They can work into an existing game with an established community, as Gucci and Vans demonstrated with their collaboration with Roblox.
But the hardest part is knowing how to press “start” on their initial entry into the market.
How Retailers can Get in the Game
Brands often fear that if their first venture into gaming fails, they will never be welcomed back by the community. So what’s the best strategy to becoming “player one” in this potentially lucrative market? Here are some ways to enter by taking a test-and-learn approach:
- Game sponsorships and partnerships: Collaborating with established game developers or publishers, like Clark’s partnership with Roblox, enables brands to creatively connect with the gaming community. These partnerships facilitate cross-promotional activities that maximise exposure and drive deep consumer engagement.
- Events and experiential: Attending industry events like Gamescom, PAX and EGX offer unparalleled opportunities to showcase products, gather feedback and build relationships with gamers, influencers and industry professionals.
- Esports involvement: Supporting or creating esports teams presents a compelling opportunity for retailers to not only align themselves with the passion and energy of esports but also gain direct access to a highly engaged audience of gamers worldwide. Louis Vuitton’s collaboration with League of Legends to create an esports trophy that took 900 hours to complete is a great example.
- Gaming influencers: Working with influencers who create gaming content can strategically position your brand’s messaging to resonate authentically with their audience. These partnerships not only foster genuine connections but also offer retailers opportunities for innovative marketing activations that generate buzz around their products.
- In-game ads: Incorporating your brand into games can subtly introduce it to gamers without seeming overtly promotional. As Tommy Hilfiger demonstrated, this organic integration enhances authenticity and connection, boosting brand recall and affinity among players.
- Gamified shopping experiences: By integrating game elements such as challenges, rewards and virtual environments, retailers transform interactions into engaging adventures. These experiences incentivize customer engagement through rewards like virtual currency and exclusive items while fostering community through social interactions and shared quests.
For these approaches to be successful however, retailers must avoid a one-size-fits-all approach. Despite the broad demographic of gamers, achieving meaningful engagement requires a strategic focus on targeting specific fandoms within the gaming community.
This approach must be authentic and respectful, not merely a transparent attempt to capitalise on trends. It’s crucial to understand and respect the preferences and attitudes of the targeted gamers, ensuring they see the interaction as relevant and meaningful to their interests.
By doing so, retailers can leverage their distinct advantage in this space compared to media or tech industries focused on content or hardware. They can effortlessly blend physical and digital products, offering seamless integration for gamers while simultaneously being able to develop custom items tailored specifically for gaming audiences.
From here, retailers can connect with a broad audience and effectively promote their products and services, ultimately driving brand growth and taking their market share to the next level.
As Business Director at Experience12, George Bateman leads the business development, client services and brand strategy alongside wider agency management as part of the Operating Board. With over 15 years of experience in the event and experiential industry, he has a passion for film, TV and video games, and a track record of delivering award-winning campaigns and activations for global entertainment and non-endemic brands. Some of the brands Bateman has worked with include Netflix, Disney, SEGA, Jagex, eBay, Canon, Amazon, Warner Bros and Bethesda. He manages the end-to-end experiential campaign process, from developing creative concepts and event strategies to overseeing event delivery, management and reporting. He also oversees the agency’s positioning, marketing, web, SEO, social, thought leadership and research, and maintains the business pipeline and projections.
