The Metaverse could be a lucrative channel for luxury brands, according to an analysis by investment bank Morgan Stanley. In tangible terms, the financial services company says the growing digital demand for luxury goods is a 50 billion dollar revenue opportunity.
Whilst these projections are difficulty to quantify and new revenue streams in the Metaverse are only in their infancy, strategists at Morgan Stanley think this is all “about to change.”
“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,” they wrote in a note today.
According to Reuters one in five Roblox gamers update their avatars daily. Morgan Stanley noted luxury brands are exploring a number of collaborations with gaming and Metaverse platforms.
It also said Italian brand Dolce & Gabbana’s recent sale of nine NFTs for 5.7 million dollars, albeit small, highlights the virtual and hybrid luxury goods’ huge potential over the coming years.
“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),” Morgan Stanley said.Article source: Reuters