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It is not surprising to see how the word metaverse finds its place in new technological discourses. We’ve heard big-name CEOs like Mark Zuckerberg and Satya Nadella talk about it. Whether you’re a vetted Internet expert or a casual prowler, chances are you’ve heard of the Metaverse as well.
The word is booming, and so is its value — according to a Bloomberg Report From December 2021, the metaverse market will reach nearly $800 billion, further reviving the growing interest in shared worlds, 3D interactions, convergence of digital and physical worlds, data synchronization, and more.
The promising financial and advertising value of the metaverse is driving brands to get into gaming. While online game makers and social media platforms can be seen in the lead, there is also plenty of room for brand growth. luxury – many of them have already launched initial concepts for their participation in the metaverse.
The metaverse in numbers
38% of American adults heard Facebook’s VR project metaverse — 11% admitted to hearing of Facebook moving in this direction
The global Augmented Reality (AR) and Virtual Reality (VR) market size is foreseen to have crossed the 30 billion dollars in 2021 to reach almost 300 billion dollars in 2024
27% of US respondents are between the ages of 18 and 34 noted they are very interested in virtual reality, compared to 46% who say they are not interested.
Opportunities for Luxury Brands in the Metaverse
The integration and fluidity of user experience is a crucial element for the metaverse – something that syncs well with the aspirations of the luxury industry.
Stay relevant in the face of changing technology
Many luxury companies are riding the storm of the metaverse and finding ways to stay relevant with emerging technologies. With NFT total sales around $25 billion in 2021, Milan-based luxury fashion house Dolce & Gabbana set a record selling an NFT collection of nine pieces for $5.7 million, marketing them as “gems that can’t quite be found on earth”. Similarly, Nike has built Nike Land on the Roblox platform to allow people to try on virtual sneakers. Nikeland is “enhanced by real movement” to encourage physical activity among visitors.
Find a lasting goal
The high price tag of Dolce & Gabbana’s NFT is no surprise, considering some of the best designers around the world have designed it. Exclusivity adds a specific appeal to virtual products, which already have some value in an industry notorious for its waste generation. Digital fashion app DressX released a report revealing that the carbon footprint of a digital item was 97% lower than that of a physical garment. Meanwhile, according to the report, the fashion industry contributes 10% of global carbon dioxide emissions.
Overstocking can be difficult for start-up brands and could prevent them from showing a full range of designs. With 3D product renderings, users can place a confirmed order for the company to deliver to them – and luxury brands are accommodating. Luxottica offers visitors a “real life” online shopping experience using augmented reality. They also allow users to take photos of the new look and share them with their network, thereby expanding marketing channels.
Digital spending has been on an upward trend. According to a statistic reportthe number of digital shoppers has grown globally with wide margins – in 2021 over 2.14 billion people purchased online compared to 1.66 in 2016. As the cost of digital products is lower, the model can be profitable in the long term.
Riding the 5G wave
The metaverse is the infrastructure of tomorrow. The rise of 5G may further push augmented reality (AR) and virtual reality (VR) into digital products, headsets, bots and more. The idea has been to have a seamless ecosystem between gadgets, and the participation of tech giants such as Google, Microsoft and Apple, as well as many startups and other large companies, will determine how the expansion of 5G coverage could run the first metaverse projects. .
Related: The pandemic has given luxury brands a new code of conduct
Examples of luxury brands exploring the metaverse
Gucci and Roblox hosted a two-week art installation at the Gucci Garden where visitors could try on and buy digital products to dress up their avatars while walking through themed rooms with brand campaigns
Coca Cola and Friendship Box are out NFT who made millions
Louis Vuitton spear an adventure game based on the tribute to its founder. Players Might Find ‘Valuable’ NFTs
Balenciaga in Fortnite : Fortnite players can now buy digital Balenciaga products inspired by real pieces. The hub allows players to hang out with each other virtually.
On the same subject: The rise of responsible luxury
How luxury fashion brands can grow in the metaverse
Successfully selling an NFT is one thing, but heading for the metaverse is another. The process might be expensive in stages, but established brands might see the metaverse as an ever-growing opportunity to connect with their audience.
Revive old models
Companies have vast archives of designs that they cannot always use. Having a digital library of designs would help to reintroduce them for a trend check and even earn money by selling them as iconic designs.
Sell NFT Goods
The Avatar and Fashion Genies community has teamed up with Universal Music Group to release their comprehensive list of digital avatars. A representative from Genies said Coindesk that the goal of the company is to sell items costing between $3 and $15 to Gen Z audiences. Luxury brands could capitalize on this opportunity and release their exclusives. Likewise, many other NFT platforms are emerging in partnership with other brands and celebrities.
Avoid the big jump
It can be tempting to jump into the many pools of opportunity that can introduce the brand into the metaverse. Many think this is still a distant dream. Matt Moorut, senior principal analyst at Gartner, said Business in vogue that most consumers still do not regularly interact with the virtual world, especially among the older ones. The fact that there is still a market for this rather large segment should not deter brands from exploring the space.
Sharing resources and promoting user safety
There must be transparency around the digital assets used in the metaverse. Brands can form partnerships in this space to develop something new and work on a common platform for a new project. Brands could share open metaverse plans with each other to start discussions on how brands should share resources and services. Additionally, it will also help establish initial standards and digital frameworks. User privacy and security will be a higher priority, so brands must not compromise production at the expense of exclusivity and quality.
Related: How and Why Luxury Brands Should Embrace TikTok