$10 Billion Of Luxury Revenue from Luxury Accessories for Avatars?
It’s no surprise anymore that big luxury fashion houses are eager to explore metaverse and virtual fashion. Far from turning a blind eye, luxury brands have been trying to figure out how to approach VR and AR for quite some time! The new promising realm might help them capture lucrative sales and win over young fans.
Luxury Brands in the Virtual Games Industry
Up until now, luxury houses have mainly ventured onto the big gaming platforms. The one collab most of us must have heard about is Balenciaga’s partnership with Fortnite, which launched last September and marked Fortnite’s first-ever collaboration with a luxury brand. The partnership arrived with a range of ‘skins’ — virtual clothing and accessories for avatars — available in the game’s virtual store that replicates Balenciaga retail stores, as well as a real-life apparel collection.
As a follow-up, Fortnite also partnered with Moncler, a French-Italian luxury skiwear brand, on a collection of reactive ‘skins’ for players’ avatars. The catalogue is inspired by the 6 Moncler 1017 Alyx 9SM real-life collection created by visionary Matthew Williams. Each Moncler outfit includes a unique element — an ability to transition from light to dark as a player’s in-game altitude gets higher and back from dark to light as their altitude decreases. An additional component of the collaboration is a new Moncler themed loading screen with the Alps image, which references the brand’s history of being founded in a village near the mountains.
$10 Billion from Gaming by 2030?!
Getting involved in the metaverse can help major luxury fashion players reach new, younger customers and, on top of that, get a boost in sales from ‘skins’ for avatars and physical products tied to a game. According to Morgan Stanley, luxury houses could generate sales of over $10 billion from gaming by 2030. In the most optimistic scenario, sales could go as high as nearly thirty billion dollars!
But what is the most lucrative play for luxury in the metaverse you may ask? The answer couldn’t be more obvious — NFTs. Dolce & Gabbana, Burberry, Gucci and several LVMH brands experimented all throughout 2021. Last month we prepared a special editorial on luxury brands’ NFT collections, you may check it here.
Without a doubt, dipping toes into the metaverse and NFT waters comes with risks for the luxury industry. Then, how does one break into it without losing exclusivity and value? One of the options and, in our humble opinion, the most optimal solution is issuing NFTs that are tied to physical luxury assets. Wouldn’t it be ideal to be able to purchase a physical Moncler skiwear, have its authenticity certified on the blockchain, and get its identical digital copy in the form of an NFT?
LuxFi Taking a Step Forward
LuxFi is the world’s first asset-backed NFT marketplace that has the chance to revolutionise e-commerce. We use biometric fingerprint technology to tie physical assets to their NFTs. The data are immutable and permanently stored on the blockchain and thus cannot be altered. Backing NFTs with physical assets adds even more value to the assets, and more importantly, ensures better security for buying, selling and investing. Our key advantage is that we incorporate all brands in consideration of marketplace listings. Join LuxFi to make history!
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.
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