Meta Universe opens the door to a multi-billion market for luxury NFTs

The non-fungible token (NFT) market is undoubtedly very hot now, and according to current forecasts, this market will only get hotter. The establishment of Meta Universe opened the way for NFT luxury brands, which will reach 56 billion U.S. dollars by 2030. As the production of NFT continues to create new forms of fashion consumption, more and more high-end brands are jumping on this fast-growing train and investing in their new digital collectibles business. As more aspects of people's lives move online, the demand for digital fashion and goods will increase substantially in the next few years.

Metaverse, the virtual space where people can interact with each other and digital objects through personalized avatars, is a breakthrough concept currently under development and construction. However, it still has a long way to go. Nevertheless, in this short period of time, the space available to us now creates opportunities for luxury brands to benefit from the rise of digital collectibles and so-called “social games”.

The beginning of the Internet, the beginning of Web 1.0, allowed people to connect to information. Web 2.0 is an iteration of social media, which essentially promotes a new wave of people connecting with others. And now, Web 3.0 will become a brand new virtual reality, the so-called meta universe. In this new digital world, people are not only searching for information and connections with each other—they will experience the immersion of true virtual reality.

NFT and Meta universe are huge opportunities for high-end brands

As an immersive experience, the personal avatar used by users will wear clothes and equipment as a manifestation of personalization and personal expression, just like they are in the physical world—this opens up a truly exciting opportunity for high-end brands.

Experienced strategists mentioned the global platform Roblox as an example. In this game and creation system, one in five players changes their avatar every day, just like a person gets up and puts on clothes every morning. Other platforms, such as "Fortress Night", have provided insights into the scene of a shopping mall in Metaverse through the establishment of a "retail street" and later a "mega shopping mall".

Gucci

In May 2021, Roblox platform held a virtual exhibition for luxury fashion brand Gucci from 17th to 31st. Players on Roblox can buy real digital models of Gucci products with a small amount of game currency. As soon as the digital assets of the exhibition were sold out, players began to take out the brand's NFT items for auction, raising its cost ten times. One of the items, a virtual version of the very popular Bacchus bag, was sold at auction for $4,100, which is $700 higher than the retail price in real life.

Balenciaga

In September 2021, French high-end brand Balenciaga launched a digital series of "Fortress Night" fashion clothing, which can be purchased with in-game currency at a price of approximately US$8. Crypto-gaming experts predict that the social gaming component of digital asset investment can add approximately US$10-20 million to the luxury market.

Karl Lagerfeld

In September 2021, luxury NFT ushered in another exciting adventure. The world-renowned designer Karl Lagerfeld released a total of 777 NFTs on the digital fashion market THE DEMATERIALIZED, each costing 77 euros (about 87 US dollars). Price for sale. Under the eager anticipation of players, Lagerfeld's works were sold out in a few seconds, igniting people's curiosity about new sales channels in the luxury goods market. Whether these sales are due to the hype for innovation, or people are really starting to see that powerful digital properties can create opportunities-in any case, the results of this successful launch have exceeded expectations.

Since our physical world still maintains a source of capital for luxury fashion brands, and because they rely on the physicality of clothing to establish contact with their customers, the success of Karl Lagerfeld, Gucci and Balenciaga just shows us a possibility. Brands that are not accustomed to selling digital goods will have a different chemical reaction with NFT and their industry transformation, because many of their qualities rely on physical materials.

Consumers who pay close attention to the evolution of NFTs and the transition to digital assets may ask, what is all the hype? Why is everyone eager to take advantage of this market? How should the fashion industry find its place in this digital realm. Meta Universe is trying to solve this problem, we have seen innovative methods, and all of this can be implemented.

Look to the future

Although luxury brands have achieved initial sensational effects, strategists believe that after Meta Universe fully develops, brands that meet the "soft luxury" category (including ready-to-wear, leather products, footwear, etc.) will have brands in the market The luckiest and most advantageous position. In contrast, “hard luxury” areas, such as high-end watches and jewelry, may find it much more difficult to achieve the same level of success as the physical world.

Meta Universe can also help brands expand their audience. At present, the demographic structure of Roblox players is mainly composed of teenagers, and 70% of sales in the fashion industry are contributed by women. But in Metaverse, luxury brands will have the opportunity to attract customers of a whole new age group that they would not normally contact as consumers, thereby further increasing the appeal of a more immersive and embodied Internet.

Since the meta-universe is based on decentralized virtual space, many creative people will have many opportunities to succeed in these meta-universes, and luxury goods will definitely find a foothold. However, representatives of luxury brands must consider that their industry and craftsmanship may be surpassed to create satisfactory products and universal art. Because in this exciting new digital field, the rules and economic structure have not yet been fully formed, and everyone has a unique opportunity to find success.

Concluding remarks

Obviously, the meta universe will continue to exist. Although still developing and evolving, some daily parts of our lives have been intertwined with the digital universe. Although such a brand-new world will cause people to fear the unknown, the real world has many dangers and uncertainties to overcome, but this new digital field can open up opportunities for many people when they realize that the virtual world will not disappear. With a sigh of relief, our integration with the digital world is becoming deeper and deeper.