Is it possible for the middle class to live a luxury life in the metaverse ? It doesn’t seem possible for now, as the luxury brands are already rubbing their hands when they are getting ready for the new world.
Although it seemed pointless to spned a lot of money on the items used in the games at first, we suddenly realized that we were thinking wrong. And now it is pretty obvious that millions of people are ready to open their wallets for luxury consuption in the metaverse. As the luxury brands are following the accelerated trend seriously, they are already in process to get ready the virtual versions of their fancy products, and it is not out of the picture that more extreme and unique products are on the way only for the metaverse. Don’t even think that those luxury goods will be unlimited quantities, because you are in the virtual world. Users who purchase them receive an NFT (non-fungible token) as a virtual certification of ownership. In our real life, most of the brands have overproduction and at the end of the season, it is inevitable to encounter big discounts. In the metaverse, there will be no price drops due to overproduction, because there will be no need to stock products. So, rich fastionistas will probably continue to keep their place on the waiting list for years but to get a virtual Birkin bag this time in the metaverse.
Old fashions can join new trends. Due to the long years of experience and accumulated designs and products of the brands, it will be easy, fast and low cost to adapt their existing works to the virtual world.
Meta CEO Mark Zuckerberg says “Avatars will be as common as profile pictures today, but instead of a static image, they’re going to be living 3D representations of you, your expressions, your gestures that are going to make interactions much richer than anything that’s possible online today. You’ll probably have a photo realistic avatar for work, a stylized one for hanging out, and maybe even a fantasy one for gaming. You’re going to have a wardrobe of virtual clothes for different occasions designed by different creators and from different apps and experiences.”
Gucci, Prada, Balmain, Adidas and Nike have taken their first steps in to the metaverse last year. But, LVMH chief executive Bernard Arnault is cautious of the metaverse “bubble”. The luxury executive is taking a wait-and-see approach to digital 3D worlds and products. “We have to see what will be the applications of the metaverse and NFTs. It can undoubtedly have a positive impact —if it is well done — on the activity of the brands, but it is not our objective to sell virtual sneakers at €10. We are not interested in that.” Arnault said.
“Metaverse gaming and non-fungible tokens could represent a revenue opportunity of 50 billion euros for the luxury market by 2030. NFTs and social gaming present two near-term opportunities for luxury brands, allowing them to monetize their vast IP (intellectual property) built over decades” Morgan Stanley said. Dolce & Gabbana’s sale of nine NFTs for $5.7 million shows the huge potential for “virtual and hybrid luxury goods.” Morgan Stanley estimates that the total NFT market will grow to around $300 billion by 2030. Kering, the owner of luxury brands; Gucci and Yves Saint Laurent, is best placed to take advantage of the metaverse because of its “brand demographics and given head start in innovative digital collaborations,” Morgan Stanley said.
All suppliers are preparing for the race among the inhabitants of the new world. Is everyone ready to dress up their avatar in the best way possible, send it on the most luxurious vacation, drive it in the most supercar, dine at the best restaurant and attend the coolest parties ?