Metaverse opens the door to a multi-billion market for luxury NFTs
The non-fungible token (NFT) market is now very hot, and it is predicted that it will only get hotter in the future.This The creation of Metaverse Open the door to NFT luxury brands arrival It will reach 56 billion U.S. dollars by 2030. As NFT production continues to create new fashion consumption patterns, 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 turn online, the demand for digital fashion and merchandise will increase significantly in the coming years.
Metaverse virtual space, where people can communicate with each other and interact with digital objects through personalized avatars, is a breakthrough concept currently being developed and constructed. However, it still has a long way to go.Nevertheless, in such a short period of time, the space available to us is now created for luxury brands from digital collectibles and The rise of so-called “social games”. “
The beginning of the Internet or 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 connections between people and others. Now, Web 3.0 will become a new kind of virtual reality, better known as Metaverse. In this new digital world, people will search for more than just information and interconnections-they will experience true virtual reality immersion.
NFT and Metaverse are huge opportunities for high-end brands
As an immersive experience, the personal avatars used by users will wear clothes and use objects as the embodiment of personalization and personal expression, just like what they do in the real world-this opens up a very Exciting opportunity.
Experienced strategists use the global platform Roblox as an example. In this game and creation system, one-fifth of players change their avatars every day, just like a person gets up and puts on clothes every morning. Other platforms, such as Fortnite, have provided insights on the possibility of Metaverse owning a shopping mall by establishing “retail shops” and later “large shopping malls.”
May 2021, Roblox platform Host From May 17th to 31st, a virtual exhibition of luxury fashion brand Gucci. Players on Roblox can purchase digital models of real Gucci products with a small amount of game currency. Once the digital assets of the exhibition were sold out, gamers began to auction the branded NFT items, which inflated the cost tenfold. One of the items is a virtual version of the very popular Dionysus handbag, which was sold at auction for $4,100, which is $700 higher than the retail price of the real version.
Then, in September 2021, the French premium brand Balenciaga roll out The digital collection of Fortnite fashion clothing can be purchased with game coins for approximately $8. Crypto game experts predict that the social game part of digital asset investment can add about $10-20 million to the luxury market.
September 2021 witnessed another Exciting luxury NFT adventure, When the world famous designer Karl Lagerfeld Released There are a total of 777 NFTs on the digital fashion market THE DEMATERIALIZED, each priced at 77 Euros (approximately US$87). Under the eager anticipation of the players, Lagerfeld’s works sold out within a few seconds, igniting people’s curiosity about new approaches to the luxury market. Whether these sales are due to hype about new things and innovations, or people are really starting to see how digital assets create opportunities-either way, the results of successful launches have exceeded expectations.
Since our real world still relies on luxury fashion brands, because they rely on the physical properties of clothing to connect with customers, the success of Karl Lagerfeld, Gucci, and Balenciaga are just possible examples. Brands that are less accustomed to selling digital goods will have a different relationship with NFT and its industry transformation, because many of their qualities rely on physical materials.
Consumers who pay close attention to the product The evolution of NFT The transition to digital assets may ask, what is all the fuss about, why everyone is so eager to take advantage of this market, and how the fashion industry finds its place in this digital environment. Metaverse is trying to solve this problem, and we have seen innovative ways to put it all in place.
Although luxury brands have caused an initial sensation, strategists believe that after Metaverse is realized, brands belonging to the “soft luxury” category (including ready-to-wear, leather goods, footwear, etc.) will have the most market share. Lucky and profitable position in the market. In contrast, “hard luxury” industries, such as high-end watches and jewelry, may find it much more difficult to achieve the same level of success as the real world.
Metaverse can also help brands expand their audiences. The current population 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 new age group they usually don’t connect with consumers, further increasing the appeal of a more immersive and substantive Internet.
Since Metaverse is based on decentralized virtual space, many creative people will have many opportunities to succeed in these metaverses, and luxury goods will definitely find its home. However, representatives of luxury brands must consider their possibility of being surpassed in their industry and craftsmanship to create desirable products and art. In this exciting new digital field, the rules and economic structure have not yet been fully formed, and everyone has a unique chance of success.
Obviously, Metaverse will continue to exist. While still developing and evolving, certain parts of our lives have been intertwined with the digital world. Although afraid of the unknown that such a new world will appear, the real world itself also has many dangers and uncertainties that need to be overcome. This new digital field can provide many people with an opportunity to breathe a sigh of relief when they realize that the virtual world will not When going anywhere and we are becoming more and more a part of it every day.
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The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Constantine Cogan Co-founders of BullPerks and GamesPad, partners of BitBull Capital, founders of Adwivo, former managing directors of Wave Financial, entrepreneurs, meta-connectors, influencers, blockchain technology enthusiasts and digital asset investors, and Leaders in top thought hedge funds, IT startups, venture capital, healthcare, agriculture, real estate, and media/entertainment. Constantine has a PhD. In Sociology and M.Ed. And he is fluent in five languages.