Metaverse holds a $50 billion revenue potential for luxury

Dior enters the Metaverse

The digital demand for fashion and luxury brands has been spiralling with popularity, and is set to sky rocket with the introduction of the new digital universe that the Facebook empire boasts. The Metaverse is said to potentially boost luxury sales by $50 billion, according to Morgan Stanley.

Morgan Stanley also reveal that non-fungible tokens (NTF’s) and gaming with a social aspect like avatars and games that allow players to meet online present two huge opportunities for luxury brands.

This can be seen with brands such as Balenciaga and their collaboration with Fortnite, and the influx of designer brands to platforms such as Animal Crossing. The digital space is here to stay, and is only gaining more popularity as an outlet to share the latest collections via.

“The Metaverse will likely take many years to develop; however, NFTs and social gaming (e.g., online games and concerts attended by people’s avatars) present two nearer-term opportunities for luxury brands,” a US investment firm shares.

To give an idea of the influence of the gaming and digital space, its reported 1 in 5 Roblox gamers update their avatars everyday. Wether is be their avatars hair style, makeup or outfit, this has presented luxury brands with a number of opportunities for collaborations within the gaming and Metaverse platforms.

The Gold Glass Dress NFT designed by Dolce & Gabbana and constructed by UNXD, a digital marketplace.

A recent sale of Dolce & Gabbana’s NTF’s for 1,885.719 Ether (Ethereum cryptocurrency), which translates to around $5.7million. This demonstrates the potential that the digital and luxury space has for the future.

“We expect the whole sector to benefit from the advent of the Metaverse, but see the soft luxury brands (ready-to-wear, leather goods, shoes, etc.) as particularly well positioned as opposed to hard luxury (jewellery and watches),”