Esports, Gaming and Retail – The Potential for Powerful Convergence

Shop! Podcast Series: Esports, Gaming and Retail – The Potential for Powerful Convergence

No longer a niche market, the Esports and gaming industry is a worldwide phenomenon that is having an impact on retail via convergence through brand presence and sponsorship. Plus, opportunities abound. Myra Vaughn, MG2, and Daniel Kelley, HyperX, discuss the growth of gaming and e-sports, the profile of gamers, the mainstreaming of gaming and esports, and opportunities for retailers, brands, mall operators and developers in this arena.

Host:

Jo Rossman, publisher & editor of Shop! Retail Environments magazine

Participants:

Myra Vaughn AIA, LEED AP, Principal in MG2’s Retail Market
Daniel Kelley, Director, HyperX Corporate Marketing

Don't have time to listen to the Podcast?

Report put together by Zita Watkin, Shop! ANZ

With an estimated 2.3 billion gamers worldwide, what do brand marketers need to know about working in this space and killing it! The growth of gaming brings opportunities. So, what can make a real impact from a brand marketing perspective?

My main takeaways from Podcast:

Fortnite – Breaking down barriers cross consoles and making gaming affordable
Esports – Mimics real physical sports with elite players and hordes of spectators, debunking idea of gamers being hermits
Mergence of female gamers
Branded content being introduced in games and how brands can sponsor Esports
Retailers like Walmart and Westfield already have head in the game

New trends making the gaming and Esports space exciting!

Gaming - Fortnite – ‘Unification’ can now play across platforms / consoles and PC’s. Not just playing against the computer. Before it was siloed. Halo Infinite (Xbox) coming out on multi-platform.
Esports (electronic sports) – competing in a competitive gaming environment. The absolute 1% best competing for millions just like real sports.

Bringing Esports to mainstream culture

There have been stigma’s, “not a real sport” etc.
Esports brands are now employing prominent musicians, athletes, saying “we love e-sports”.
Inevitable that the influencers and brand ambassadors are becoming celebrities like mainstream sports.

The Consumer Market

Although gaming and Esports are enjoyed more broadly than Generation Z (generation after millennials), this generation is less likely to shop in a physical space for general merchandise, making gaming an excellent way to get this group reengaged with the physical retail world. Other points:

Misconception that gamers are reclusive, confined to their homes and digital worlds.
Gamers go to conferences, they dress up. They want to get out and celebrate the highs and lows like traditional sports.
Retailers need to keep evolving to changing shopper demographics and consumer behaviour.

Brands and Retailers; Trailblazers and trends to watch

Microsoft stores are front runners (about 80 stores in US). Every weekend they hold Esports competitions in-store, bringing people into store and introducing them to their products.
Walmart have put themselves in the esports spotlight by putting arenas on the right side of piolet stores entrance. The positioning along leads to a cross-generation conversation with parents and kids. Walmart’s goal is to create a place where casual online and competitive players can play, socialise and eat. They can also play in tournaments and purchase esports gear as well as games.
Traditional retail zones need a rethink! In the past, gaming zones in retailers have followed that of other area’s in the store. For example, different coloured zones representing different brands etc.
The “already educated” customer. Traditional retail is about educating customer. But the gaming customer is already educated online so they need something different to the traditional transactional environment to get them to visit stores.
Growing PC area. With improved user experience, more people are now playing on PC’s growing this space instore.

New retail spaces for thought

Permanent spaces; The Luxor Hotel in Las Vegas closed a nightclub down to make way for the HyperX Esports Arena.
Temporary spaces; Hyperex Gaming Truck, gaming tournament on wheels! Truck goes to music festivals, gaming events, retailer carparks. This concepts allow esports to be introduced and trailed in different environments and markets.

Idea’s based on trends and findings

Young shoppers are generally far more researched than millennials, but nothing online can replicate the touch and feel of a product. E.g. One keyboard with 5 different tactile feels to keyboards. “Which is best for you?” You can try on headsets etc.

The experience – Play and test in a public setting. There are opportunities to work with the need to be a part of a physical community; Create events. Pop ups etc.
Get it now - Buying something in-store also give that sense of instant gratification.
“Go to the consumer” - Strategy of putting gaming lounges in airport terminals etc. Hyperex Gaming Truck – Essentially rolling tournament on wheels. Rather than a pop-up retail experience it’s more of a brand experience. Builds hype around community.

Gaining trust

With retailers and brands needing to gain trust and be authentic to achieve consumer loyalty, one idea is to put the ‘selling of products’ in the background and concentrate on Gen-Z consumer connection first. Examples of ways to do this in the podcast included the use of gaming celebrities, and sponsored retailer logos appearing in games.

Play today. Shop tomorrow

It’s important to focus not only on today’s shopper, but also on the young customer of the future. Give people the opportunity to enjoy the experience at the arena or pop-up today. This will grow a love for the brand early, giving them something to aspire to.

Emergence of female gamers (40%)

Women influence 85% of retail consumer spending in the US. With this in mind, it’s important to appeal to female shoppers as this market continues to grow. Walmart’s model for Esports in stores is an example of how a retailer is putting this information to good use, with the Esports arena at the store entrance.

Last thoughts on Esports, Gaming and Retail

Generate brand loyalty first, not selling a product
Gamers are consumers
People want to congregate
Brands need to help consumers make the connection between lifelong brand value and service

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