Metaverse: a digital universe. Infinite possibilities for its users, and for a brand’s revenue too. NFTs, GameFi, and the metaverse have solid foundations to grow into money trees in 2021. Many people still ask “What’s the point?” with every blockchain-related launch from major brands.
The gaming industry takes the spotlight as Gucci, Dolce & Gabbana, Ralph Lauren, Balenciaga, Adidas, and many other famous fashion brands and designers are racing to launch their own digital clothing on different platforms.
It might sound silly, but if look at what people were already paying thousands of dollars for mostly to brag about it, it’s not such a strange concept for the same thing to happen in the digital world. It might also mean a redefining of reality and identity.
What would your ideal persona be? This is exactly the type of curiosity the metaverse thrives on, and this is why the luxury sector is eager to sell it.
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The Metaverse Profit
The metaverse is only starting to take form and we cannot fully know what it will look like, but the concept of “avatars” is already getting big. Virtual couture houses allow users to buy and design clothes for their virtual persona.
The avatars they create are the digital versions of their users. They can do all that humans do every day, and more. A big difference is that when you sell something to a digital self, you won’t need to take into account the many costs and issues from the physical world –like shipping, fabric, damaged items, etc.
Gen Z, the new generation, is a native of TV and online gaming. Their parents raised them while they were looking at screens. These babies were surrounded with iPads, tables, books, and other objects that weren’t as familiar as the iPods or stereos they grew to love.
This means that Gen Z’s relationship with digital reality is different, and they require a marketing strategy adapted to their interests. It has been the ideal gateway.
Brands have raced more intensely since Morgan Stanley strategists at Morgan Stanley said that the metaverse would generate $50 billion of revenue in the luxury sector over the next ten years.
In eight years, the market for luxury brands is expected to grow by over 10%. Roblox users update their avatars on average every five days, according to reports. The next generation of gamers will be more adaptable to digital reality, so add them up. Understandably, the modern fashion industry is enamored by how much revenue it’s about to see.
This Is A Cute Look Or Just Another Metaverse Idea
The items that can change the appearance of an avatar are called ‘skins’, and this is what brands like Balenciaga –who partnered with Fortnite– are currently focusing on as a marketing strategy.
The designer Charli Cohen, who partnered with the department store Selfridges and the company RYOT Lab to design a virtual Pokémon-related collaboration, talked to Euronews about her personal views and projection for the metaverse fashion:
She further stated that “Interoperability is going to be a major focus for digital fashion in 2022 – the ability to take your digital wardrobe across multiple games and social spaces.”
Bloomberg reports that one of the digital bags sold by Gucci Garden Roblox during 2021 was the Gucci Roblox Pop-up. It cost $4,000. Burberry created playable NFT characters named Shaky B to be used in Mythical Games. The collection was sold for approximately $400,000.
And the cherry on top of the metaverse-involved luxury industry, Dolce & Gabbana sold an NFT collection of nine pieces for around $5.7 million. This is just the beginning.
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